News
BR says only Prez, PM and Cabinet can make him reverse move
Only listed companies targeted to raise Rs 114 bn
By Shamindra Ferdinando
Finance Minister Basil Rajapaksa has declared that his proposals to impose 25 percent retrospective tax surcharge on listed persons or companies that earned over Rs 2 bn 2020/2021 and increase VAT (Value Added Tax) to 18 percent from the current 15 percent wouldn’t be abandoned.
Appearing on ‘Salakuna,’ a weekly political programme telecast Monday night live on ‘Hiru’ FM Rajapaksa emphasised that he wouldn’t succumb to pressure from those affected by his proposals. Responding to ‘Hiru’ anchor Chamuditha Samarawickrema, the FM said only President Gotabaya Rajapaksa and Preme Minister Mahinda Rajapaksa and the Cabinet could intervene.
FM Rajapaksa said that he discussed the issue at hand with the chambers and didn’t object to the imposition of the surcharge for a year or two in view of the devastation caused by the pandemic, though they opposed haphazard changes in taxes.
However, those companies that hadn’t been listed in the Colombo Stock Exchange were left out of the tax net in spite of them, too, being cash rich, much to the surprise of the business sector.
Rajapaksa urged the media not to engage in a campaign to pressure the government to do away with the proposals.
Presenting the Budget for 2022, Minister Rajapaksa proposed (a) one-time tax surcharge of 25 percent on persons or companies with taxable income over Rupees 2,000 million for the year of assessment 2020/2021. The government expected to recover Rs 100 bn through this tax and (b) VAT on banks and financial service providers to be increased to 18 percent from 15 percent. Minister Rajapaksa stressed that this tax should be paid monthly from 01 January 2022 to 31 December 2022 and not passed onto customers. The government expected to raise Rs 14 bn through the tax.
When some Opposition members interrupted Minister Rajapaksa immediately after he announced the 25 percent surcharge on a selected group of companies, the FM said that he would like to see who represented the interests of the targeted companies.
The Inland Revenue Department says the following companies are likely to be levied proposed one-off tax surcharge: LOLC Holdings (Rs.23,075 mn), Commercial Bank (Rs 16,940 mn ), Ceylon Tobacco (Rs. 15,578 mn ), ExpoLanka Holdings (Rs. 14,830 mn), HNB (Rs 14,096 mn), Dialog Axiata (Rs. 12.034 mn), Ceylinco Insurance (Rs.8,880 mn), Sampath Bank (Rs.8,442 mn), Vallibel One (Rs. 8,117 mn), Sri Lanka Telecom (Rs.7,880), Hayleys (Rs.7,637 mn), Distilleries Company of Sri Lanka (Rs. 6,962 mn), LB Finnace (Rs. 6,807 mn), Royal Ceramics Lanka (Rs. 6,135 mn), Central Finance Company (Rs. 5,544 mn), Tokyo Cement Company (Lanka) (Rs.5,425 mn), People’s Leasing and Finance (Rs. 5,295 mn), Dipped Products (Rs.5,140 mn), National Development Bank (Rs. 5,117 mn), John Keells Holdings (Rs.5,026), Carson Cumberbatch (Rs.4,804 mn), Richard Pieris and Company (Rs. 4,680 mn), Melstacorp (Rs. 4,425 mn), LOLC Finnace (Rs.4,365 mn), Nations Trust Bank (Rs. 4,055 mn), Hemas Holdings (Rs. 3,621 mn), Bukit Darah (Rs. 3,541 mn), Cargills (Ceylon) (Rs.3,481 mn), CIC Holdings (Rs.3,132 mn), Haycarb (Rs. 3,047), SeylanBank (Rs. 3,039 mn), Lanka Walltiles (Rs. 2,960 mn), Nestle Lanka ( Rs.2,947 mn), DFCC Bank (Rs. 2,745), Ceylon Guardian Investment Trust (Rs. 2,721 mn), Citizens Development Business Finance (Rs.2,554), Lanka Tiles (Rs. 2,475 mn), Lion Brewery Ceylon (Rs.2,471 mn), Singer Sri Lanka (Rs.2,452 mn), Ceylon Cold Stores (Rs.2,334 mn), CT Holdings (Rs.2,288 mn), Chevron Lubricants Lanka (Rs.2,225 mn), Commercial Leasing and Finance (Rs. 2,216 mn), Access Engineering (Rs. 2,173 mn), Teejay Lanka (Rs.2,139 mn), Pan Asia Banking Corporation (Rs.2,048) and Commercial Credit and Finance (Rs, 2,005).
Former banker and Samagi Jana Balavegaya lawmaker Eran Wickremaratne strongly opposes the budget proposal. Asked for his stand on FM Basil Rajapaksa’s move and whether the latest proposal is similar to the tax imposed by the UNP but not implemented, MP Wickremaratne told The Island: “The private sector is not averse to paying taxes. They want a predictable tax environment so that they can plan and execute business plans. A one-off tax is arbitrary and unpredictable. It destroys business confidence. It weakens planning as well as foreign investors’ confidence in the country.”
Referring to the doing away with one-off super gains tax declared in 2015 but never implemented, SJB lawmaker Dr. Harsha de Silva stressed that two wrongs did not make a right.
Sources said that the cash strapped government could have targeted unlisted companies too. However, the decision makers had conveniently restricted the targeted group from among the listed group.
Responding to ‘Salakuna’ queries, Minister Rajapaksha strongly defended sharp tax cuts imposed immediately after the change of government in 2019. The minister said that sharp reduction of taxes saved many private companies, including the one that employed the ‘Salakuna’ team of journalists. The minister said so when Chamuditha Samarawickrema asserted that the government caused unnecessary revenue issues by reducing a range of taxes amounting to well over Rs. 500 bn.
News
Israel resumes attacks as Iran vows to avenge supreme leader’s death
* Iran begins 40-day mourning after Khamenei killed in US-Israeli attack
* President Pezeshkian condemns killing as ‘a great crime’
Iran has begun 40 days of mourning after Supreme Leader Ayatollah Ali Khamenei was killed in ongoing attacks by the United States and Israel, according to Iranian state media.
Top security officials were also killed in Saturday’s strikes, along with Khamenei’s daughter, son-in-law and grandson. The killings mark one of the most significant blows to Iran’s leadership since the 1979 Islamic revolution Al Jazeera has reported.
Iranian President Masoud Pezeshkian condemned the killing as “a great crime”, according to a statement from his office. He also declared seven days of public holidays in addition to the 40-day mourning period.
Reporting from Tehran, Al Jazeera’s Tohid Asadi said people were pouring into the streets of the capital following the news of Khamenei’s killing.
“There will be expected ceremonies,” he said, noting they would likely take place amid continuing bombardment across the country.
Protests denouncing Khamenei’s killing were also reported elsewhere, including Shiraz, Yasuj and Lorestan.
“There will be expected ceremonies,” he said, noting they would likely take place amid continuing bombardment across the country.
Footage aired by Iranian state media showed supporters mourning at the shrine of Imam Reza in Mashhad, with several people seen crying and collapsing in grief, according to Al Jazeera.
The killing also led to protests in neighbouring Iraq, which declared three days of public mourning. In Baghdad, protesters confronted security forces in the heavily fortified Green Zone, which houses Iraqi government buildings and foreign embassies.
Videos verified by Al Jazeera showed demonstrators waving flags and shouting slogans, with witnesses saying some were attempting to mobilise towards the US Embassy. Footage also showed protesters blocking vehicles at a roundabout near one of the entrances to the area.
There was also a protest in the Pakistani city of Karachi, where footage, verified by Al Jazeera, showed people setting fire to and smashing the windows of the US consulate.
However, there have also been reports of celebrations in Iran, with the Reuters news agency quoting witnesses as saying some people had taken to the streets in Tehran, the nearby city of Karaj and the central city of Isfahan.
Meanwhile, the official IRNA news agency reported that a three-person council, consisting of the country’s president, the chief of the judiciary, and one of the jurists of the Guardian Council, will temporarily assume all leadership duties in the country. The body will temporarily oversee the country until a new supreme leader is elected.
Ali Larijani, the head of Iran’s Supreme National Security Council, accused the US and Israel of trying to plunder Iran, in an interview aired on state TV.
He also called on Iranians to unite. “Groups seeking to divide Iran should know that we will not tolerate it,” he added.

Smoke rises over central Tehran following ongoing U.S.–Israeli strikes on Iran yesterday.[EPA]
Khamenei assumed leadership of Iran in 1989 following the death of Ayatollah Ruhollah Khomeini, who had led the Islamic revolution a decade earlier.
While Khomeini was regarded as the ideological force behind the revolution that ended the Pahlavi monarchy, Khamenei went on to shape Iran’s military and paramilitary apparatus, strengthening both its domestic control and its regional influence.
Meanwhile, the Islamic Revolutionary Guard Corps (IRGC) pledged revenge and said it had launched strikes on 27 bases hosting US troops in the region, as well as Israeli military facilities in Tel Aviv.
Explosions have continued to be reported in Qatar and the United Arab Emirates, while security alerts are in place in several countries across the region.
US President Donald Trump, in a social media post on Sunday, warned Iran that it would be hit “with a force that has ?never been seen before” if it retaliated.
Iran’s retaliatory attacks since Saturday have targeted Israel and US assets across multiple Middle East countries, including Qatar, the UAE, Kuwait, Bahrain, Jordan, Saudi Arabia and Iraq.
Harlan Ullman, chairman of the strategic advisory firm Killowen Group and an adviser to the Atlantic Council in Washington, DC, said the US may have made a “big mistake” by killing Khamenei.
“Decapitation only works when you get all the leaders, and I don’t think that we got all the leaders,” Ullman said, adding that the US should not expect Iran’s leadership to enter negotiations in the immediate aftermath.
Iranian state media reported on Saturday at least 201 people have been killed in the joint US-Israeli attacks across 24 provinces, citing the Red Crescent. In southern Iran, at least 148 people were killed and 95 wounded in a strike on an elementary girls’ school in Minab on Saturday, with the toll continuing to rise, according to state media.
News
CPC has enough fuel stocks
There would be no delay in fuel shipments scheduled for April and May, the Ceylon Petroleum Corporation (CPC) assured yesterday.
Addressing a media briefing in Colombo, CPC Chairman D.J. Rajakaruna said Sri Lanka’s fuel supplies did not originate from the present conflict zone in West Asia and, therefore, supplies to the Corporation would not be disrupted.
He noted that the relevant consignments were due to arrive from India and Singapore as planned.
“We are making this statement responsibly. There is no need for the public to queue up for fuel. Distribution was not originally scheduled for Sunday (01), but due to increased demand, we have deployed all distribution staff to continue fuel issuance. Although Monday (02) is a Poya Day, fuel supplies will continue without interruption,” he said.
The Chairman added that all filling stations had been instructed not to dispense fuel into cans or barrels, warning that legal action would be taken against those attempting to purchase fuel in bulk containers for resale.
News
Lanka, Pakistan strengthen ties at 13th JEC
The 13th Session of the Sri Lanka–Pakistan Joint Economic Commission (JEC) was successfully held recently in Colombo, reinforcing the strong and longstanding economic and diplomatic ties between the two countries.
The Sri Lankan delegation was led by Wasantha Samarasinghe, Minister of Trade, Commerce, Food Security and Cooperative Development, while the Pakistani delegation was headed by Haroon Akhtar Khan, Special Assistant to the Prime Minister of Pakistan for Industries and Production. The session concluded with the signing of the Agreed Minutes by both Co-Chairs, formalising cooperation across multiple sectors.
The Pakistan High Commission in Colombo said that in the IT and digital economy, both sides agreed in principle to establish a Joint Working Group on IT and telecommunications, promote collaboration in emerging technologies, and support each other in international digital forums.
Industrial cooperation was a key focus, with discussions on expanding trade in chemicals, polymers, engineering goods, glassware, surgical instruments, and pharmaceuticals. Sri Lanka invited Pakistani pharmaceutical companies to explore investment opportunities in designated pharmaceutical zones. Both countries also agreed to strengthen collaboration in Export Processing Zones and enhance support for small and medium enterprises through their respective development agencies.
Significant progress was made in agriculture and livestock, including cooperation on meat exports, livestock farming, seed certification, sanitary and phytosanitary harmonisation, pest risk analysis, and capacity building. Procedures for the export of Sri Lankan pineapples and avocados to Pakistan were advanced. Both sides explored electronic phytosanitary certification (ePhyto), blockchain-based seed traceability systems, and increased trade in agro-commodities such as rice, sesame, and onions.
In education, the JEC emphasised academic and research cooperation, faculty and student exchanges, accreditation and quality assurance, and promoting Pakistan as a higher education destination for Sri Lankan students. A Joint Working Group on Education and Science was proposed, alongside renewal of several institutional Memoranda of Understanding.
Cooperation in science, technology, and innovation will continue under existing bilateral frameworks, with plans for joint research in advanced materials, biotechnology, climate change mitigation, and emerging technologies. Collaborative research projects, student exchanges, and co-authored publications were highlighted as key initiatives.
Health sector collaboration will focus on joint research, academic exchanges, regulatory cooperation on therapeutic goods, capacity building, fast-track registration of essential medicines, public-private partnerships, epidemiological surveillance, and coordinated responses to disease outbreaks.
Maritime cooperation was also discussed, with Pakistan offering technical expertise, training, and industrial collaboration through its shipbuilding institutions. Both sides explored enhanced maritime connectivity, including transshipment, port cooperation at Karachi and Gwadar, direct shipping routes, logistics integration, and maritime training programs.
Commerce secretary-level talks reviewed the progress of the Pakistan–Sri Lanka Free Trade Agreement (PSFTA), assessing current implementation and identifying measures to further enhance bilateral trade and economic cooperation.
On the sidelines, Special Assistant Haroon Akhtar Khan held discussions with Sri Lankan Cabinet members on collaboration in industry, labor and foreign employment, and health sectors.
Both delegations expressed satisfaction with the outcomes of the 13th JEC and reaffirmed their commitment to regular engagement and effective implementation of agreed initiatives. It was mutually agreed that the 14th session will be held in Islamabad, with dates to be confirmed through diplomatic channels.
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