Business

Book industry stakeholders decry ‘further taxing of reading and learning’

Published

3 years ago

2024/02/6

Standing united against the imposition of VAT on books (from left): K. Samarawickrama – president, All Ceylon Booksellers Association, Dinushi Abeywickrema – president, Sri Lanka Book Importers and Exporters Association, author Sumithra Rahubadda, Dinesh Kulatunga – Secretary, Sri Lanka Book Publishers Association, Samantha Indeewara – president, Sri Lanka Book Publishers Association, Prof. Ven. Agalakada Sirisumana, Vijitha Yapa – past president, Sri Lanka Book Publishers Association and Kamal Perera – secretary, Lanka Writers’ Organisation.

By Ifham Nizam

Industry associations, academics and writers expressed concern over the long-term consequences of making books more expensive for the masses. All stakeholders stressed that they would go all out to bring justice to the book lovers and the industry, at a media briefing held at the SLFI on February 2.

Accordingly, Sri Lanka’s book industry called for an immediate reversal of the decision to impose a tax of 18% on the sale of books, in terms of the recent VAT revisions.

General Secretary of the Sri Lanka Book Publishers Association (SLBPA) Dinesh Kulatunga, in response to a query by The Financial Island Review said that over the past few decades, the local book industry has diligently produced books using imported paper, plates, inks, chemicals and machinery, consistently paying all required import taxes, including VAT.

He said that the cumulative amount contributed by the industry in the form of these taxes exceeds Rs. 1 billion. This tax has been levied on book production by both the state and private sectors.

Kulatunga added: “We have never sought subsidies for these activities. However, we are now respectfully requesting the government to reconsider this decision, as the ultimate burden of this additional 18% tax will fall upon the general public, including students, as a form of a tax on reading and learning.

“We wrote to the IMF that since gaining independence in 1948, our nation has been committed to providing books at an accessible cost to students, educators, education authorities, universities, and the general public. This was made possible by the absence of taxation on books, which serve as the primary repository of knowledge across a diverse range of subjects. Books are not merely a fundamental element of human civilization; they continue to mold our comprehension of the world around us. They serve as versatile tools that enrich our lives by disseminating and safeguarding knowledge, promoting communication, nurturing creativity and serving as educational, entertainment, and cultural resources.

“In the light of these circumstances, we earnestly requested the authorities to reinstate books under the exemption from VAT. We also requested an opportunity to engage in a further discussion regarding this matter, given its profound significance to a knowledge-based economy and our society as a whole. But there was no response.

“Countries like the UK, USA, India, China, Japan, Saudi Arabia, and Brazil, do not levy VAT on books. Therefore, we do not believe that the IMF has compelled the imposition of a tax on books; it may be an inadvertent error made by our officials. We are optimistic that they will reevaluate this decision.”

Speakers representing different stakeholder groups in the book industry also charged that with the indiscriminate extension of VAT to a highly sensitive and vulnerable sector like books, Sri Lanka was also in violation of the UNESCO Florence Agreement of 1950, to which the country was an early signatory and continues to be a Contracting State.

The UNESCO Florence Agreement is a treaty that binds Contracting States not to impose customs duties and taxes on certain educational, scientific, and cultural materials that are imported.

The Sri Lanka Book Publishers Association Past President, Vijitha Yapa said: “Last year in September when the 18 per cent VAT on books was announced, we met President Ranil Wickremesinghe and discussed about exempting books from VAT. The President said that that is one of the IMF conditions.”

Yapa also said nothing had happened since then. “After lobbying and writing letters to the Finance Ministry, relevant authorities and various ministers, we were asked to write to the IMF directly and sort things out as we were given to understand that it was an IMF condition and that the authorities have no control over it.”

Yapa added: “It is an obstacle towards the expansion of knowledge in this country as people can’t afford to buy books. Any book publisher or printer with a monthly turnover of over Rs. 5 million is liable for VAT on top of all the other taxes that are imposed when importing the raw materials for printing.”

Meanwhile, Writers Organization of Lanka, Secretary Kamal Perera told The Island Financial Review that:

“If we are talking about VAT on books, I think this will strongly affect the reader and the writer. In my opinion, they should be informed about the unfairness of this tax and raise a national-level protest that the rulers could feel.

“I see it as a very futile action to submit proposals to the government. It’s a failure like playing the harp for deaf elephants. It’s now very clear that this government will never listen to the people’s voice.

“I do not see any practical solution other than building a broad public opinion demanding the immediate removal of this unjust tax.”

Sri Lanka Books Importers and Exporters Association, President, Dinushi Abeywickreme stated, “It’s not just the 18 per cent VAT that is added to the price of the book, but an overall tax of 30 per cent, inclusive of other taxes and a price hike of all raw materials following the COVID-19 pandemic and economic crisis in Sri Lanka.”

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ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

7 hours ago

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Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

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“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

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USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

7 hours ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

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CSE activity up, turnover weak at Rs. 1.4 billion

Published

7 hours ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

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Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.