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Lead to underfunding education, other key public services: HRW

Published

2 months ago

2025/10/16

Sri Lanka: Ruinous tax policies stoke inequality

Sri Lanka’s tax policies played a driving role in the country’s devastating 2022 economic crisis and have contributed to the chronic underfunding of education and other public services, Human Rights Watch has said in a report released on Oct. 15. The government of President Anura Kumara Dissanayake should urgently adopt measures to uphold its human rights obligations and enact reforms to a system that presently favors companies and wealthy people while failing to deliver adequate revenues.

The 101-page report, “Tax Giveaways, Struggling Schools: How Low Taxes Drove Sri Lanka’s Economic Crisis and Squandered its Education Lead,” describes how Sri Lanka’s successive governments have adopted policies that resulted in inadequate revenues, contributing not only to Sri Lanka defaulting on its debt but also to a decades-long decline in public education spending as a share of Gross Domestic Product (GDP) to among the lowest in the world. It also documents the impacts of inadequate funding on children’s right to education. Moreover, low corporate and personal tax revenues have led to an average of 80 percent of taxes coming from goods and services, which generally are regressive because they claim a higher share of poorer people’s income.

“For decades, Sri Lanka has been hostage to economic policies that starve its government of revenue and reflect a myopic focus on GDP growth,” said Sarah Saadoun, senior economic justice researcher at Human Rights Watch. “In practice, that means education spending has fallen well behind the pace of growth, turning the country from a global leader in public education to a laggard.”

Human Rights Watch interviewed over 70 people, including those affected by the economic situation and familiar with the public education system, as well as a wide spectrum of prominent Sri Lankan economic experts. Human Rights Watch also conducted a comprehensive analysis of relevant data and research relevant to Sri Lanka’s tax policies and education spending.

These policy failures have infringed upon children’s right to education, Human Rights Watch found. Sri Lanka’s education spending dropped from between 3 to 5 percent of GDP in the two decades following independence, a time when the country was an education champion among postcolonial countries, to 1.5 percent of GDP in 2022, among the lowest in the world.

Low tax revenues also contributed to Sri Lanka defaulting on its debt in April 2022, which precipitated an economic crisis including widespread job and income loss alongside a sharp rise in the cost of living that remains devastating for human rights.

While former President Gotabaya Rajapaksa introduced sweeping tax cuts in 2019 that dealt a devastating blow to revenues, Human Rights Watch found that the problem began in the late 1970s, when Sri Lanka began an economic shift common at that time that deprioritized social spending and liberalised trade. The resulting sharp decline in tax revenue from trade and other sources was not replaced by a progressive tax system that appropriately benefited from the ensuing growth.

In particular, the government began regularly granting companies broad tax exemptions through an opaque body highly vulnerable to abuse. In 2022, the cost of tax exemptions reached a staggering amount equivalent to 56 percent of revenues, or nearly three times the education budget. The government also collects only a small amount of taxes from personal income and assets and has not ensured that tax agencies have the capacity and accountability needed for tax enforcement.

The report’s focus on education illustrates a broader deprioritization of social spending, but the squandered potential is particularly salient in education, an area in which Sri Lanka was once widely regarded as a global leader. Sri Lanka was among the first countries to establish free primary and secondary education for most people.

Human Rights Watch found that low spending has led to schools charging fees to cover the cost of basic resources, posing significant hardship to many families. Inadequate public funds have also led to a vast disparity in resources based on students’ socioeconomic status. Low corporate and personal income tax revenues have led the government to heavily rely on taxes and goods and services—called “indirect taxes”—such as value-added tax (VAT) that weigh more heavily on poorer people.

In March 2023, the International Monetary Fund (IMF) approved a $3 billion bailout to Sri Lanka and creditors restructured the country’s debt, although its debt servicing obligations remain very high. In 2024, the government paid 57 percent of its revenue to creditors. In January 2025, President Dissanayake’s National People’s Power (NPP) party took office following a campaign that promised sweeping economic reforms, including reducing regressive taxes and improving education.

The government should consider eliminating corporate tax exemptions given their high cost, questionable effectiveness, and vulnerability to abuse, Human Rights Watch said. The government should also adopt other progressive tax measures, such as a wealth tax.

The case of Sri Lanka reflects the challenges many governments face under the current international tax system. For example, tax competition pressures governments into offering tax incentives that fuel a race to the bottom, depriving many governments of the necessary revenue to fulfill human rights. These challenges highlight the importance of ongoing negotiations for a United Nations tax treaty to build international rules informed by human rights imperatives and increased cooperation that would enable governments to end this negative spiral.

Under international human rights law, states are obligated to take steps to the “maximum of their available resources” to progressively realize the rights to health, education, social security, and an adequate standard of living, among other economic, social, and cultural rights. States are obliged not only to act individually, but also through international assistance and cooperation. This necessarily implicates states’ fiscal practices and tax policies domestically and in international fora.

Sri Lanka’s new government has taken some positive steps, such as providing an LKR 6,000 (about $20) bursary to some families to help with education-related costs, but it has only marginally raised the education budget. It should continue to increase the education budget, with a goal of reaching the internationally agreed benchmark of 4 to 6 percent of GDP allocated to education, Human Rights Watch said. The government of President Dissanayake should also urgently adopt measures to uphold its human rights obligations and enact reforms to a system that currently favors companies and wealthy people while failing to deliver adequate revenues.

“Sri Lanka’s economic quagmire makes clear that growth alone is not enough to fulfill human rights,” Saadoun said. “The government should finally establish a progressive tax system and use its income so that it adequately funds education and other public services that benefit all Sri Lankans.”

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Jetstar to launch Australia’s only low-cost direct flights to Sri Lanka, with fares from just $315^

Published

3 hours ago

2025/12/8

Priyan

It has been announced that Jetstar will take off for the first time from Australia to Sri Lanka in August next year, with the launch of the only direct low-cost service from Melbourne to the South Asian nation’s capital, Colombo.

From 25 August 2026, Jetstar will become the first Australian airline to operate this route, flying three times a week between Melbourne and Colombo and offering more than 100,000 low-fare seats a year on the new route.

Upgraded aircraft

This year-round service will be operated by Jetstar’s fleet of 11 widebody Boeing 787 Dreamliners which are progressively being upgraded from early next year to overhaul both the economy and business class cabins*.

The interior refit includes more than doubling the number of business class seats and installing Wi-Fi so customers can stream entertainment to their own devices.

The addition of a new lie-flat crew rest area to allow flights of up to 16 hours will open the door to even more incredible long-haul destinations in the future. The first of the upgraded aircraft is due to touchdown in Melbourne in late March 2026.

Sale fares

The countdown is on to these new flights going on sale at midday today (8 December).

At that time, Jetstar will launch a 24-hour Route Launch Sale with one-way fares available between Melbourne (Tullamarine) and Colombo from only $315^ at jetstar.com.

Jetstar’s growth

The launch of Melbourne to Colombo flights comes during one of the most exciting growth periods in Jetstar’s almost 22-year history.

Over the past two years, the airline has announced 26 new routes and welcomed 13 new aircraft, allowing travellers to take off more, for less.

2025 has been a standout year, with 14 new routes announced – nine of them international – with more exciting growth plans in coming years.

This year the Melbourne based carrier is also celebrating 10 years of operating domestically from Melbourne’s T4, having carried more than 50 million customers through the terminal.

Holiday peak travel

The new route announcement comes as Jetstar prepares for its biggest Christmas ever.

Jetstar is forecast to carry a record of almost six million passengers across its Australian, New Zealand, Japan and international network throughout December and January.

This includes a record 1.7 million passengers flying through Melbourne alone across the summer peak.

Jetstar CEO Stephanie Tully said the airline’s Melbourne to Colombo route will give Australians a new direct and affordable way to take off more to Sri Lanka.

“Colombo is an incredible destination, and from August next year, we’re excited to be making it easier for Aussies to experience everything the beautiful country of Sri Lanka has to offer.

“This new route out of our home base of Melbourne is part of a huge growth phase for Jetstar. We’ve added new destinations, more aircraft and we’re continuing to expand our international network to give travellers even more choice and opportunities to take off for less.”

Melbourne Airport Chief Executive Officer, Lorie Argus, welcomed Jetstar’s new flights to Sri Lanka as the airport and airline celebrate 10 years since the opening of Terminal 4.

“We’re thrilled to see Sri Lanka, one of the region’s fastest-growing destinations, become Jetstar’s 10th international destination from Melbourne.

“More Jetstar flights mean more legendary low fares – making it easier than ever for Victorians to explore this part of the world for leisure or to visit family and relatives.

“We’re marking a major milestone as we celebrate a decade since Jetstar moved into its home at Terminal 4 and it’s fantastic to see how our partnership has strengthened. A decade on, we’re proud to be Jetstar’s largest hub.”

Flight schedules

From 25 August 2026**

Flight

Frequency

Depart

Arrive

JQ5

Melbourne – Colombo

Tuesday, Thursday and Saturday

12:00

17:50

JQ6

Colombo – Melbourne

Tuesday, Thursday and Saturday

19:50

10:00+1

**Schedule valid for 25 August – 03 Oct 2026, other periods vary based on daylight savings.

*As the upgraded 787 are progressively rolled out, some flights will operate with upgraded aircraft and others with our existing 787 aircraft.

^Sale ends 12.00pm AEDT Tuesday 9 December 2025, unless sold out. Excludes checked bags. Prices based on payment by PayID, Jetstar voucher, Jetstar Gift Card, or bookings redeemed only in Qantas Points through jetstar.com. For other options, a Payment Fee applies. See jetstar.com/fees. Travel dates and other conditions apply. Flights from Melbourne (Tullamarine) to Colombo are subject to Government and Regulatory approval.

Latest News

Laws to curb unauthorised constructions to be strengthened

Published

7 hours ago

2025/12/8

Priyan

The President emphasised that no room will be given in the future for unauthorised constructions and that the laws relating to them will be strengthened. The President further pointed out that failure to do so would lead the country to face an even greater disaster.

President Dissanayake stated that a separate unit will be established under the Reconstruction Presidential Task Force, which is to be set up shortly, to formulate legal policies and that this will enable long-term solutions to these issues.

President Anura Kumara Dissanayake made these remarks on Sunday (07) afternoon while participating in the Special District Coordination Committee meeting held at the Kurunegala District Secretariat.

The President instructed the relevant authorities to restore all damaged provincial roads and local council roads in the Kurunegala District to full functionality and reopen them for public use within the next two weeks.

He further stated that the allocations already set aside for this purpose should be utilized and that any roads that cannot be completed before 31 December, along with the required allocations, should be reported. The necessary funds will be allocated for these in the 2026 budget.

The district has recorded damage to 1,181l ‘A’ and ‘B’ grade provincial roads due to the disaster, along with 35 bridges, 162 culverts and one embankment. Detailed discussions were held on restoring them urgently.

The President separately reviewed the measures taken to restore essential infrastructure including electricity, water supply and communication facilities that had been disrupted in the district due to the disaster. He emphasised that delivering services up to the end user is the responsibility of the service-providing institutions and highlighted the need for strong coordination among these institutions to overcome existing obstacles.

Officials reported that 12,729 hectares of paddy land in the Kurunegala District were fully damaged due to the disaster, of which 7,215 hectares remain cultivable, while 5,514 hectares cannot be cultivated.

The President instructed the Water Supply Board to provide temporary water where cultivation is hindered due to lack of irrigation water and directed authorities to minimise the extent of uncultivable land as much as possible to ensure harvesting. He also inquired into the programme for supplying paddy seeds and fertiliser to farmers.

Damage caused to maize, vegetables and other supplementary crops, as well as the compensation process for affected farmers, was also reviewed.

The President informed local council Chairpersons that a main responsibility for well-cleaning activities lies with the local councils and instructed them to expedite the work with the assistance of the Tri-Forces and voluntary organisations.

Highlighting the need for maintaining accurate data on livestock farms across the country, the President pointed out that existing laws may be insufficient for this purpose and stressed the need to revise them. He also noted that the lack of proper registration of livestock farms causes issues when granting compensation and other assistance.

Therefore, the President instructed officials to bring all livestock-related data into a single system, review it and promptly make policy decisions regarding compensation.

There were also discussions on reviving the inland fisheries industry, healthcare requirements and the reopening of schools.

Extensive discussions were held on identifying land for resettlement and granting compensation for damaged houses. The President instructed that Divisional Secretaries must play a major role in compensation payments and resettlement activities.

Meanwhile, Venerable Aluthgama Mangala Thero, Chief Incumbent of Maddeketiya, Gokarella Sangamu Raja Maha Viharaya has allocated 20 acres of temple land for the resettlement of affected families. The relevant documentation was handed over to the President.

A financial donation of Rs. 10 million from the North Western Provincial Cooperative Societies, associations and members coordinated by the North Western Provincial Cooperative Development Department along with a donation from S.M. Wasantha Samarakoon, owner of Gokarella Rice Mill, was also handed over to the President.

Minister of Public Security and Parliamentary Affairs, Ananda Wijepala, Deputy Minister of Agriculture and Livestock, Namal Karunaratne, Deputy Minister of Women and Child Affairs , Namal Sudarshana, North Western Province Governor, Tissa Warnasuriya, district MPs from both government and opposition, local council Chairpersons, Secretary to the Treasury, Dr Harshana Suriyapperuma , Ministry Secretaries, Kurunegala District Secretary, Chandana Dissanayake, senior government officials and security forces leaders were present on this occasion.

Latest News

627 confirmed dead, 190 persons missing as at 6:00 a.m. today [08]

Published

8 hours ago

2025/12/8

Priyan

The Situation Report issued by the Disaster Management Center at 0600hrs on 8th December 3035 confirms that 627 persons have lost their lives due to floods and landslide that occurred in the island during the past few days. The number of persons missing was 190.