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Govt. corrals many more into tax net by lowering VAT threshold from Rs. 60 Mn to Rs. 36 Mn 

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Projected revenue at Rs. 5.3 Bn, budget deficit 1.75 Bn

Rs. 6,500 Mn allocated for Clean Sri Lanka initiative

Estate wages hiked to Rs. 1,750 from Rs. 1,350 per day

Rs. 1 Bn allocated to address human-elephant conflict

Rs. 342 Bn for road development programmes

The government has decided to reduce the annual turnover threshold for the registration of Value Added Tax and Social Security Contribution Levy from Rs. 60 million to Rs. 36 million.

The proposal will be implemented with effect from 01 April, 2026.

The new tax system has been proposed with the view of broadening the tax base, President Anura Kumara Dissanayake said during his 2026 Budget speech in Parliament yesterday.

He said that the total number of registered taxpayers in Sri Lanka has increased by 300,000 as of 30 September, 2025, compared to 2024.

The President made this revelation while delivering the 2026 Budget speech.

President Dissanayake also confirmed that the Simplified VAT System (SVAT) has been abolished with effect from 01 October, 2025, and has been shifted to an approved refund process to improve tax compliance and reduce misuse.

Presenting the Budget Proposals for the year 2026 commenced at 1.30 pm and continued till 5.57 pm.

According to the 2026 Budget proposal delivered by the President, the government’s expected revenue for 2026 is set at Rs. 5,300 million while the expenditure has been projected to be Rs. 7,057 million.

The Budget deficit will be Rs. 1,757 million or 5.1% of the Gross Domestic Product.

The government has proposed to remove the Special Commodity Levy on imported coconut oil and palm oil and implement the general tax structure including Value Added Tax.

The new tax system on imported coconut oil and palm oil will be implemented from April 2026, President Dissanayake said.

At present, locally produced coconut oil and palm oil are subjected to Value Added Tax and Social Security Contribution Levy, while imported coconut oil and palm oil are subjected to Special Commodity Levy at Rs. 150 per kilogram and Rs. 275 per kilogram, respectively.

The new tax proposal has been proposed to ensure a level playing field, the President stated.

President Dissanayake said that a total of Rs. 6,500 million has been allocated for the Clean Sri Lanka programme for next year.

President Dissanayake said that the land acquisition process for the proposed Kurunegala-Dambulla expressway is currently underway.

Accordingly, through the 2026 Budget, the government has allocated Rs. 1,000 million to complete the land acquisition process, the President said.

The government has allocated a sum of Rs. 342 billion for road development programmes in the 2026 Budget, President Dissanakaye stated. A total of Rs. 66.1 billion has been allocated for the Kadawatha-Mirigama section of the Central Expressway through the 2026 Budget.

Furthermore, Rs. 10.5 billion for the Pothuhera-Rambukkana and Rs. 20 billion for the Rambukkana-Galagedara section of the central expressway have been allocated through the Budget.

The President said that through the 2026 Budget, a sum of 25,500 million has been allocated to develop Sri Lanka’s digital economy. He also pledged to establish a Digital Economy Council next year.

The allocation will facilitate the infrastructure needs, streamlining investment processes and fostering an innovation-friendly environment.

The government has proposed to allocate an additional provision of Rs. 1,000 million to the Department of Wildlife Conservation to expedite the completion of electric fence constructions and related projects aimed at mitigating human-elephant conflict across the country, the President said.

In addition, Rs. 10 billion has been proposed for research initiatives to identify long-term, research-based solutions beyond the construction of electric fences to reduce these elephant-human conflicts, he said.

Estate worker wages are to be hiked to a total of 1,750 rupees a day, President Dissanayake said, presenting the Budget for 2026.

“We believe that estate workers should be paid a fair daily wage, commensurate with their work,” the President said.

The current minimum wage of an estate worker is 1,350 rupees a day.

An additional 200 rupees will be given daily by the government to encourage estate workers to come to work, Dissanayake said.

“This is as an incentive for them to show up for the 25 days.” The government will allocate 5,000 million rupees for this, he said.

The Budget Debate on the Second Reading of the Appropriation Bill will commence on 08 November and continue for six days. The vote on the Second Reading is scheduled for 14 November (Friday) at 6 pm.

The Committee Stage Debate is set to begin on 15 November and will continue for 17 sitting days, including three Saturdays, until 05 December. The vote on the Third Reading of the Appropriation Bill is to be taken up at 6 pm on 05 December.

During the budget period, Parliament will meet daily, except on Sundays and public holidays. Sessions will begin at 9.30 am on Mondays and at 9 am on other days. Each day’s sittings will continue until 6 pm, with time from 6 to 6.30 pm allocated for adjournment motions, shared equally between the Government and the Opposition, except on voting days.

In addition, during the Committee Stage Debate, provision has been made for five Questions for Oral Answers and one Question under Standing Orders 27(2), apart from the regular business under Standing Orders 22(1) to (6).



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If we are to live fulfilling and happy lives, we need unity, mutual understanding, harmony, as well as art – PM

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Prime Minister Dr. Harini Amarasuriya stated that art, together with unity, mutual understanding and harmony, is essential for people to lead fulfilling and happy lives. She further emphasized the importance of preserving our identity while remaining open-minded and prepared to face the challenges of a rapidly changing society.

The Prime Minister made these remarks while participating in the opening ceremony of a special educational and cultural trade exhibition and festival organized jointly by the Wayamba Janakala Foundation and the Siyapatha Kala Sangamaya, with the vision of revitalizing the artistic heritage of the Seven Korales and creating a culturally empowered individual who appreciates the arts. The event was held at the Wayamba Janakala Centre on  Saturday, 12 September 2026.

The exhibition will be held from 12 to 18 September, from 10.00 a.m. to midnight. The cultural festival has been organized for school students, teachers, youths, and adults.

At the commencement of the exhibition, the Prime Minister opened the exhibition stall of the Department of Education and officially launched the website of the Janakala Foundation.

Veteran artists representing the North Western Province who have made an outstanding contribution to the field of art, including Professor Mudiyanse Dissanayake, Nibiriyagama Bandara, Anton Coorey and Charitha Wickramasinghe, were also felicitated by the Prime Minister on this occasion.

Addressing the occasion, the Prime Minister further stated:

“We believe that art and culture, both are important in realizing the thriving nation and beautiful life that we aspire. It is equally important to see and learn about the heritage of our country and, through our experiences, engage in a dialogue on how we can take these traditions forward by incorporating them into our lives in ways that are relevant to the present day.

As the Member of Parliament mentioned to me, films are being screened here, educational programmes and workshops are being conducted, and there are a number of performing arts presentations. Through all of these activities, what we hope to achieve is to enrich the lives of the people of the North Western Province. Being ‘rich’ does not mean economic prosperity alone. Building roads, constructing buildings and developing housing facilities are all necessary. But these alone are not sufficient. We can build a modern city out of concrete and still live empty lives devoid of happiness, sensitivity or fulfilment. If we are to truly make our lives fulfilling and create happiness, however, we need things such as these. We need unity, mutual understanding and harmony.

We must also learn through experience how to conduct ourselves in public spaces and how to remain safe within society. We cannot assume that we can protect ourselves simply by separating ourselves from everything and remaining closed off. While preserving our identity, we must be prepared to face the challenges ahead with an open mind if we are to learn how to live safely in a complex society that is changing rapidly due to technology.

Therefore, today, I encourage you to speak to someone you have never spoken to before. Try to understand their life. Share your ideas and experiences with someone who has come from a place far away from you, someone who does not speak your language, or someone who belongs to a different religion or culture. It is through such interactions that our lives become broader and we gain an understanding of new things.

That is also why art and culture are essential to our lives. A good book can take us to places we have never been. A good work of art or a film can bring us closer to another person’s experience in a way that allows us to feel it ourselves. Therefore, I invite everyone to enjoy and appreciate the arts today with a very open mind and a sense of enthusiasm.

I am grateful to everyone who worked hard and dedicated themselves to making this event possible. I wish for these seven days of programmes to be highly successful and to provide everyone with seven days of memorable experiences.

The occasion was attended by the Governor of the North Western Province Tissa Warnasuriya, Deputy Ministers Namal Karunarathna and Namal Sudarshana, Member of Parliament Dharmapriya Dissanayake, other Members of Parliament, the Mayor of Kurunegala, Chairpersons of Pradeshiya Sabhas, Chairman of the Janakala Foundation Anil K. Senadheera, government officials, school students, residents of the area.



(Prime Minister’s Media Division)

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Dr. Roshanie Dissanayake appointed Secretary to the Ministry of Science and Technology

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President Anura Kumara Dissanayake has appointed Dr. Roshanie Dissanayake as the Secretary to the Ministry of Science and Technology.

The letter of appointment was handed over to Dr. Dissanayake by Secretary to the President Dr. Nandika Sanath Kumanayake at the Presidential Secretariat on Friday (11) morning.

Dr. Roshanie Dissanayake has also served as an Additional Secretary (Sri Lanka Administrative Service – Special Grade) at the Ministry of Public Administration, Provincial Councils and Local Government.

President’s Media Division (PMD)

 

 

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Gnanasara Thero absconding after SC ruling

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Ven. Galagoda Aththe Gnanasara Thero was not at his temple in Rajagiriya when prison officials visited the premises yesterday to take steps following the Supreme Court ruling that nullified the presidential pardon granted to him, police sources said.

Prison officials who visited the temple on Nawala Road, Rajagiriya, were reportedly informed by those present that the Thero’s whereabouts were unknown. The development comes a day after the Supreme Court declared former President Maithripala Sirisena’s 2019 pardon of Gnanasara Thero null and void.

The three-member Supreme Court bench comprising Justices Janak De Silva, Dr. Sobhitha Rajakaruna and Sampath B. Abayakoon held that the pardon was arbitrary, violated the public trust and principles of natural justice, and was made beyond the proper exercise of the President’s constitutional discretion.

The case arose from Gnanasara Thero’s conduct at the Homagama Magistrate’s Court in January 2016 during proceedings relating to the disappearance of journalist and political cartoonist Prageeth Eknaligoda.

The Court of Appeal convicted him on four counts of contempt of court in 2018 and imposed concurrent prison terms amounting to six years. He had served about nine months when Sirisena granted him a presidential pardon on May 23, 2019.

The Supreme Court found that although Article 34 empowers the President to grant pardons, that power is held in trust for the people and is subject to constitutional limitations and judicial review. The Court concluded that Sirisena had effectively acted on the recommendation of the Additional Secretary (Legal) without demonstrating that he had independently considered the relevant material.

Justice De Silva held that the pardon was “arbitrary”, violated public trust and the rules of natural justice, and was ultra vires the President’s powers. The Court consequently found that the decision violated the fundamental right to equality guaranteed by Article 12(1) of the Constitution.

The ruling effectively restores the legal position under the original conviction, leaving Gnanasara Thero without the benefit of the 2019 pardon. The Supreme Court also clarified that a pardon does not erase a conviction or sentence, but merely relieves an offender from serving the sentence to the extent specified in the pardon.

Gnanasara Thero, the General Secretary of the Bodu Bala Sena, had been convicted over his conduct during proceedings concerning the disappearance of Eknaligoda, who went missing in January 2010 and has not been located.

Sandhya Eknaligoda, Prageeth Eknaligoda’s wife, was among those who challenged the presidential pardon before the Supreme Court, alongside the Centre for Policy Alternatives and its Executive Director Dr. Paikiasothy Saravanamuttu.

The detailed account of the judgment indicates that the Court’s ruling primarily nullified the pardon and restored the legal effect of the original sentence, with the implementation of the sentence falling to the relevant authorities.

Police sources said that the Supreme Court, however, did not permanently close the door on executive clemency. It held that a future President could grant Gnanasara Thero another pardon, provided the power is exercised lawfully and after proper consideration of all relevant material.

The Supreme Court has so far overturned three presidential pardons granted to two former Presidents. In January 2024, the Court declared former President Gotabaya Rajapaksa’s pardon of former MP Duminda Silva unlawful and invalid. In June 2024, it invalidated two pardons granted by former President Maithripala Sirisena to Royal Park murder convict Jude Shramantha Anthony Jayamaha — the first in May 2016, which commuted his death sentence to life imprisonment, and the second in October 2019, which released him from prison. Jayamaha, who was convicted of the murder of 19-year-old Yvonne Johnson, remains at large. Most recently, on September 10, 2026, the Supreme Court declared Sirisena’s 2019 pardon of Ven. Galagoda Aththe Gnanasara Thero null and void, ruling that it was arbitrary and inconsistent with the Constitution.

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