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Lankans will have to pay more to send postal packages to EU member countries

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Following imposition of revised tax policy

by Suresh Perera

With the European Union (EU) revising its tariff regime on postal shipments with effect from July 1, all postal packages up to EUR 150 (approximately Rs. 35,500) in market value mailed from Sri Lanka to any of the 27 member countries in the economic and political grouping will be subject to direct Value Added Tax (VAT).

The new tax policy will not be applicable to letters sent to EU member states, Post Master General (PMG) Ranjith Ariyaratne clarified.

However, postal customers, online sellers and marketplaces, which send items within the specified EUR 150 value will be liable to VAT, he said.

Postal goods that exceed the stated value will be subjected to other customs regulations as determined by the relevant government in addition to the VAT policy of the EU member country, the PMG explained.

He said that all applicable customs duties on postal items exceeding EUR 150 in value will be charged from the recipient of postal item/items at the destination.

Asked how the VAT component could be paid directly to the EU member country concerned, Ariyaratne said the payment can be done by registering online.

Customers can obtain all information about the tax policies, payment options and the procedures to be followed in terms of the relevant laws and regulations by accessing the relevant web links. (See below)

He said that customers should be aware of these policies, regulations and updates by referring to the web links before handing over their items to postal counters for onward delivery.

Asked on what basis the values on postal packages are calculated for taxation, the PMG said there is a variance depending on the category.

“The tax is applicable even to a personal gift item sent from Sri Lanka to a person living in any EU member country”.

All postal customers, including online retailers and online marketplaces, are required to provide the Import One Stop Shop (IOSS) ID Number with the parcel/postal item at the post office counter, to ensure smooth customs clearance and timely delivery of the goods to the destination.

In the event of non-compliance with applicable tax policies, the destination country reserves the right to add relevant taxes including VAT and other import tariffs. In addition, the recipient may have to pay an extra clearance fee according to the import rules and regulations of the destination country.

Additional charges at the time of import may cause the customer to refuse the goods. The customer is responsible for any further action taken by the Postal Administration or the Customs in respect of the relevant product.

The Sri Lanka Postal Department is not responsible for the imposition and collection of VAT or any other tax levied by the EU countries, the PMG stressed.

More information on the revised EU tax policy can be obtained by visiting the following web links:

 

https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm

https://ec.europa.eu/taxation_customs/business/union-customs-code/ucc-introduction_en

https://ec.europa.eu/taxation_customs/business/union-customs-code/ucc-legislation_en

https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en

https://ec.europa.eu/vat-ecommerc



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No PC polls this year, says Tilvin

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Tilvin

The much-delayed Provincial Council (PC) elections cannot be held this year due to financial and legal constraints, JVP General Secretary Tilvin Silva has said in Jaffna.Silva said so, fielding questions from journalists after the opening of the NPP coordination office in the Jaffna District on Saturday.

When asked whether the government was under Indian pressure to conduct the Provincial Council elections soon, Silva answered in the negative, claiming that Sri Lankan and Indian governments maintained close and friendly relations with a strong level of understanding.

He said budgetary allocations had been made for the PC elections, but the government had been compelled to divert resources for disaster relief following the impact of Cyclone Ditwah. According to Silva, nearly Rs. 500 billion had to be allocated for relief measures, making it difficult to hold the elections this year. He further said legal complications in the electoral reform process had also contributed to the delay in holding the PC elections, noting that a parliamentary committee had been appointed to determine the electoral systems under which the PC polls should be conducted. Once the committee submitted its report and if no further issues arose, the elections could possibly be held next year, he said.

Silva also said the government had taken measures to strengthen reconciliation and development in the North by releasing lands previously occupied by military camps and improving road infrastructure.He added that empowerment initiatives were being implemented under the Praja Shakthi programme and that both Sri Lanka and India were continuing to work in close cooperation.

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Weather conditions worsen, displacing 31,000 people

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More than 31,000 people across Sri Lanka have been affected by worsening weather conditions, as the southwest monsoon intensifies ahead of its full establishment, raising fears of renewed flooding in vulnerable low-lying areas, the Disaster Management Centre (DMC) has warned.

The DMC has said 31,072 individuals from 7,983 families have already been impacted by persistent rain, strong winds and rising water levels across multiple districts, with the situation most severe in the Gampaha District where 15,313 people from 3,950 families have been affected and one death reported.

Officials have cautioned that the scale of disruption could worsen as the southwest monsoon is expected to fully establish over the island around May 26–27, bringing heavier and more sustained rainfall to the southwestern region.

At present, 18 safety centres are in operation, sheltering 1,724 displaced persons from 446 families. One person has been injured and 859 houses have been partially damaged. Two houses have been destroyed.

The Department of Meteorology has forecast increased rainfall over the coming days, warning that conditions are likely to deteriorate further as monsoon activity strengthens.

Flood-hit areas remain widespread, with river systems still under pressure despite a brief easing in rainfall on Saturday. The Kelani River has returned to normal levels, but minor flooding persists along the Kalu River basin, particularly in the Millakanda area, where tributary water levels remain elevated.

Low-lying areas in Bellapitiya, Horana, continue to be inundated, while traffic on the Bulathsinhala–Kalutara road remains disrupted due to flooding in Diyakaduwa. Authorities have also flagged continued risk in Putupawula and Ellagawa along the Kalu River.

The Attanagalu Oya basin is also slowly receding, though residents in Dunamale have been urged to remain on alert. Several homes in Ja-Ela remain underwater, with residents alleging that delayed repairs to a damaged canal embankment worsened the flooding.

In a fresh blow to infrastructure, the Swarna Hansa Podi Ela bridge in Ja-Ela collapsed on Saturday evening, further disrupting local transport links, while the main Ja-Ela–Gampaha bus route remains submerged in parts of Yakkaduwa.

Meteorologists have warned that rainfall is expected to intensify again from May 26 to 28, when the southwest monsoon is likely to be formally declared over Sri Lanka, raising the risk of further flooding and landslides in already saturated areas.

by Norman Palihawadane and Chaminda Silva

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Dickoya double murder suspect arrested

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Police said a suspect wanted in connection with the murder of an elderly couple inside a shop in Dickoya town, Hatton, had been arrested on Saturday evening (23).

The arrest was made in the Bogawantalawa police area. Acting on a tip-off, the police arrested him while he was hiding in a house on a tea estate.

Police said stolen gold jewellery had been recovered.

Preliminary investigations revealed that the suspect, originally from Badulla, had been residing in Dickoya after his marriage.

Earlier on Saturday, Hatton Police released CCTV footage of the suspect and sought public assistance to trace and arrest him.

According to police, the suspect allegedly slit the throat of the elderly woman and killed her husband using a sharp weapon on Thursday (21) before fleeing with gold jewellery valued at around 18 sovereigns, including a necklace and earrings.

Investigations further revealed that the suspect had arrived in Dickoya town on the morning of May 21 and visited several jewellery shops claiming he intended to purchase a gold necklace, while loitering in the area.

Police said that around 1.15 pm, he entered the couple’s shop and remained concealed inside the premises before allegedly carrying out the attack.

Hatton Police added that the suspect is believed to have committed the murders and left the shop around 5.30 pm the same day before going into hiding.

by Norman Palihawadane

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