Business
Retrospective tax law is bad, says professional
‘Section 38 on Deemed Assessed Value could infringe on tax payers’ rights’
by Sanath Nanayakkare
Speaking at a Webinar held on the 2nd June 2021.on “Recent Amendments to the Inland Revenue Act” Shamila Jayasekara Partner – Head of Tax & Regulatory said that in principle, retrospective tax law was bad as it could have negative consequences on the concluded transactions of businesses.
Sharing her concerns and views on the topic she said,” A lot of changes made to the tax code are incentives provided through the form of tax exemptions, the concessionary rate being applied to a large number of sectors, the qualifying payments allowed and expanded, the withdrawal of withholding taxes, the expansion of deductible tax expense”.
“Those were the plus factors of the tax proposals to give relief to businesses. Now, they are retrospective. Some of the agriculture tax excemptions come in from April 2019 and the others from January 2020. so we need certain clarifications and guidelines to be issued by The Inland Revenue Department fast, so we can implement them during this month. Then as practitioners, we can amend returns that have already been submitted and filed.”
“Another area I want to bring is another area is; there were certain changes that were done which were not budget proposals and which were not announcements in press statements either with retrospective effect going back to April 2018. Now in principle, I think retrospective tax law is bad, but in circumstances when certain incentives were given and published, then of course you become aware of these changes though the law may not be there. But it should not hit you as a surprise when you read the tax amendments because these have consequences to concluded transactions of businesses. I don’t think it is positive from the tax side where you suddenly find you have concluded a transaction and then you find the tax law has changed with retrospective effect. What has happened has happened but it should not happen. I understand that even in the current amendments there are gaps. If you take concessions given to SMEs, I think there is a bit of doubt as to what an SME is. I understand these changes and I know that the policymaker can change those, but those should be done prospectively. It should not be a retrospective change because tax law is a fiscal law and no one would know the thinking behind policies ,so you go on the wording of the law, therefore, any change should be prospective’
“Further, the introduction to section 38 of a deemed assessed value on the realization of investment assets; you are to consider it on the market or an assessed value or the value given by a valuer.. But if the commissioner is of the view that is not reflective of market value then he can determine an alternate value. I think that gives a lot of room for arbitary valuations and a lot of disputes. With regard to this section, there is no penal code either because the law empowers the determined value to be accepted as the assessed value. That will of course infringe on the tax payers rights,” she said.
Business
Business, economic heavyweights converge in Colombo
Senior business leaders, economists and international development experts, alongside the Prime Minister of Sri Lanka, will headline the Sri Lanka Economic & Investment Summit 2026, organised by The Ceylon Chamber of Commerce on 12 and 13 October at the Shangri-La Colombo.
The Summit will open with a keynote address by T. Krishnakumar, Chief Executive Officer, Reliance Consumer Products Ltd, who brings more than four decades of experience in the consumer brands and FMCG sectors. Having previously served as President of Coca-Cola India and Southwest Asia, with extensive experience in building businesses and driving growth across emerging markets, Krishnakumar, more popularly known as Kk, now leads Reliance Consumer Products as it expands across categories and builds new customer, partnership and market opportunities.
Day 2 will bring together four international perspectives across discussions on economic resilience, regional connectivity, sector growth and digital transformation.
Lilia Aleksanyan, Senior Country Economist for Sri Lanka at the Asian Development Bank, will open the day’s discussions with a focus on Sri Lanka’s economic resilience. Her work covers the country’s macroeconomic outlook, policy advice and macro-fiscal and financial-sector reform. Her international policy experience also includes roles at the French Ministry of Finance and the French Central Bank.
The Summit will then turn to Sri Lanka’s connections with regional markets, with P. D. Singh, Chief Executive Officer, India & South Asia, Standard Chartered Bank, delivering the keynote for the session on trade corridors and value chains. Singh counts close to three decades of experience in banking and finance, with senior leadership roles spanning Standard Chartered, JPMorgan Chase Bank and HSBC.
The Sector Deep Dives will bring international perspectives to discussions on healthcare and energy.
Tushar Shroff, Chief Financial Officer, Zydus Lifesciences Ltd, will deliver the keynote for the healthcare discussion, drawing on more than three decades of experience in corporate finance, strategic investment and financial transformation. His career spans senior finance and leadership roles with ABB, Piramal Healthcare, Intas Pharmaceuticals and Vedanta Group, giving him a broad perspective on the business and investment decisions shaping the healthcare sector.
For the energy-focused deep dive, Edore Onomakpome, Regional Infrastructure Industry Manager for Bangladesh, Sri Lanka and Nepal at the International Finance Corporation, will bring extensive experience in infrastructure investment and project finance across emerging markets. Since joining IFC in 2013, she has held senior roles across Africa and South Asia, including managing IFC’s infrastructure portfolio across 16 countries.
The Summit will conclude its keynote programme with Prime Minister Dr. Harini Amarasuriya, who will deliver the keynote for “Nation Building in the Digital Age.” The Prime Minister also oversees the Ministry of Education, Higher Education and Vocational Education, bringing a direct policy perspective to discussions on digital transformation, innovation, education and the skills needed for a changing economy.
Together, these perspectives will bring regional, international and policy insight to SLEIS 2026 as Sri Lanka considers how to strengthen economic resilience, attract investment, deepen regional connections and develop new sources of growth.
Held under the theme “Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy,” SLEIS 2026 will take place on 12 and 13 October 2026 at the Shangri-La Colombo.
The Sri Lanka Economic & Investment Summit 2026 is supported by its valued sponsors and partners. Platinum Sponsor – Standard Chartered Bank Sri Lanka, Gold Sponsor – VISA Worldwide (Pvt) Ltd., Bronze Sponsor – South Asia Gateway Terminals (Pvt) Ltd., Strategic Development Partner – Asian Development Bank, Telecommunication Partner – Dialog Telecommunication, Television Partner – Dialog Television, Session Sponsors – David Pieris Motor Company (Pvt) Ltd., Hemas Holdings PLC, Sunshine Holdings PLC, International Construction Consortium (Pvt) Ltd., Microsoft Sri Lanka (Pvt) Limited, Official Logistics Partner – Hayleys Advantis Limited, Official Airline – SriLankan Airlines Ltd., Official Hospitality Partner – Shangri-La Colombo, Airline Partner – China Eastern Air Holding Co. Ltd.
Registrations for SLEIS 2026 are now closed. The Ceylon Chamber looks forward to welcoming participants to the discussions on Sri Lanka’s future trajectory on 12 and 13 October.
Business
Commercial Bank launches ‘Prestige’ banking for HNW clients
Commercial Bank of Ceylon has launched ‘Prestige’, a three-tier banking proposition aimed at high-net-worth (HNW) clients, combining wealth management, advisory services and lifestyle benefits.
The initiative replaces the bank’s existing ‘Elite’ private banking brand with Ruby, Sapphire and Diamond tiers, designed to cater to customers according to their wealth profiles and banking relationships.
The bank said Prestige would provide dedicated relationship managers, priority branch services, preferential rates on loans and deposits, enhanced card privileges, family banking programmes and offshore account solutions.
Its wealth and investment management services include access to capital-protected income solutions, dual-currency investments, institutional deals and estate and portfolio governance.
Clients will also have access to specialist financial and corporate advisory services, including assistance with international relocation, overseas property and capital repatriation.
The programme includes lifestyle benefits such as VIP airport lounge access, travel concierge services, property management and medical coordination, as well as access to selected art and culinary events.
The bank said its flagship Prestige banking residence at R.G. Senanayake Mawatha, Colombo 07, had been refurbished, with the service to be extended to other economically important cities.
Commercial Bank Managing Director/CEO Sanath Manatunge said Prestige was intended to support customers in managing their wealth, business interests, family needs and long-term legacy.
Existing Elite clients are being transitioned to the new programme, the bank said.
Business
Ceylinco Life rewards 80 sales achievers with overseas tours
Ceylinco Life has rewarded 80 members of its sales force with overseas tours to Vietnam and China for their outstanding performance in the company’s 2025 sales competitions.
The group comprised 62 sales achievers who travelled to Vietnam and 18 who visited China.
The Vietnam tour included visits to Hanoi’s Ho Chi Minh Complex, One Pillar Pagoda, Tran Quoc Pagoda and Hoan Kiem Lake. The group also travelled to Ha Long Bay, where they went on an Aurora Cruise and explored attractions including Sung Sot Cave, Luun Cave and Titop Island.
The tour also featured a sunset party aboard the cruise, with music and refreshments.
The 18 achievers who travelled to China visited several of Beijing’s major historical and cultural attractions, including Tiananmen Square, the Forbidden City and the Summer Palace. They also took a boat ride on Kunming Lake.
A highlight of the China tour was a visit to the Mutianyu section of the Great Wall, including a round-trip cable car ride. The group also attended an acrobatic show at Chaoyang Theatre and visited the Panda Garden at Beijing Zoo.
The company said the tours were organised to recognise and reward sales personnel for their performance and achievements.
-
News7 days agoGeneva takes up Sallay’s case and govt. ignores opportunity to answer accusations
-
Features6 days agoPreventing grievances from becoming communal
-
Features4 days agoThe Sri Lankan who made Scottish history
-
Sports4 days agoNissanka absence opens door for Sri Lanka’s young guns
-
News5 days agoGnansara Thera to be assigned to prison printing section: Officials
-
News3 days agoNDB fraud Rs 60mn more than reported
-
Features7 days agoSri Lanka Cricket Bill: Governance reform is not yet a cricket strategy
-
News3 days agoRemoving monk’s robes matter for Sangha to decide: Mahanayake Theras
