News
Book industry protests against 18% VAT imposition on books
The latest salvo against the government’s imposition of value-added tax (VAT) on hitherto exempted sectors came on Friday from the country’s book industry which has called for an immediate reversal of the decision to tax the sale of books at 18%.
Associations representing local publishers, printers, booksellers and importers and writers and academics came together to voice their opposition to the unavoidable hike in the prices of books consequent to the imposition of VAT, pointing to the pernicious long-term effects it would have on socio-economic development by making access to knowledge unaffordable to many.
Addressing a press conference at the Sri Lanka Foundation Institute in Colombo, General Secretary of the Sri Lanka Book Publishers Association (SLBPA) Dinesh Kulatunga said: “We acknowledge that economic challenges spanning multiple government terms have led to a situation where the broader population has been required to shoulder the financial implications of the gradual national recovery.
“But is it fair that this short-term requirement to boost government revenue should have the longer-term destructive consequence of retarding the education, culture, intellectual progress and personal development of generations of Sri Lankans, and negatively impact the development of the knowledge economy?” he asked.
Speakers representing different stakeholder groups in the book industry also charged that with the indiscriminate extension of VAT to a highly sensitive and vulnerable sector like books, Sri Lanka was also in violation of the UNESCO Florence Agreement of 1950, to which the country was an early signatory and continues to be a Contracting State.
The UNESCO Florence Agreement is a treaty that binds Contracting States to not impose customs duties and taxes on certain educational, scientific, and cultural materials that are imported.
President of Sri Lanka Book Publishers Association Samantha Indeewara said: “With the imposition of VAT on books, Sri Lanka attains the dubious distinction of becoming one of a very few countries that impose a tax on a vital source of knowledge and information. What this means is that while the rest of the world is trying to make knowledge more accessible and inclusive at the grassroots level, Sri Lanka is trying to use this industry to raise government revenue, heedless of the serious ramifications. It is a text-book case of killing the goose that lays the golden eggs.
“According to the International Book Publishers Association, books are not a commodity like any other, but are strategic assets that activate the knowledge economy, facilitate upward social mobility as well as personal growth, and bring widespread medium and long term social, cultural and economic benefits.”
It was also pointed out that the industry already contributes upwards of Rs 1 billion to the government’s tax revenue via the VAT paid by importers that supply 90% of the raw materials used in the production of school text books and other books. The imposition of VAT on books therefore results in an anomaly of double taxation for publishers, further aggravating a difficult situation.
The government’s decision to impose 18% VAT on books has already generated concern internationally, with the International Publishers Association (IPA) and the European and International Booksellers Federation (EIBF) writing to President Ranil Wickremesinghe to voice their objections.
“Our member associations are united and have made efforts to engage with your office to explain the catastrophic consequences that such a tariff will have on the country’s book sector. We stand in solidarity with Sri Lankan publishers and booksellers, and urge you to reconsider this measure for the benefit of the Sri Lankan literary landscape,” IPA and EIBF said in their letter to the President.
Among the Sri Lankan organizations and personalities that attended the news conference to call for the restoration of the VAT exemption on books were the Sri Lanka Book Publishers Association (SLBPA), the Sri Lanka Book Importers and Exporters Association, the Sri Lanka Writers Association, and several leading writers, academics, educationists and author-publishers.
News
Steps are taken to accelerate the recovery efforts following Cyclone Ditwah despite Global Economic Challenges
A discussion on accelerating recovery measures and providing relief to those affected by the Cyclone Ditwah was held on March 28 at Temple Trees, with the participation of Prime Minister Dr. Harini Amarasuriya and civil society organizations.
During the meeting, a brief report on the current status of government measures including compensation payments through District Secretariats and information related to safety camps was presented to the Prime Minister by the Chief of Staff to the President and Commissioner General of Essential Services, Prabath Chandrakeerthi.
Special attention was given to the concerns of the estate sector Estate sector Malaiyaha Tamil community affected by the cyclone, particularly those without legal land ownership, in accessing government relief and compensation. Attention was also drawn to the need for a policy decision in coordination with the Ministry of Plantation and Community Infrastructure regarding this matter.
It was further stated by the Secretary to the Ministry of Housing, Construction and Water Supply, Engineer L. Kumudu Lal Bogahawatta , that plans have been made to accelerate the recovery process related to damages caused by the disaster in 2025. These include the construction of 20,000 new houses, the renovation of 115,000 partially damaged houses, and the provision of financial assistance amounting to Rs. 5 million for individuals who already possess safe land to build a house. Additionally, there are plans to construct apartment complexes with public facilities in major urban areas.
Officials further emphasized that the physical, psychological, and social well-being of affected communities especially women, children, and persons with special needs will continue to assess through civil society organizations, special committees, and sub-committees.
The Prime Minister emphasized that the efforts to rebuild damaged housing have focused on constructing homes in locations that are more suitable and equipped with urban public facilities over the past four months, stressing the importance of maintaining continuous communication with communities and ensuring that reconstruction takes place in safer locations that are less vulnerable to future disasters.
The discussion was attended by Secretary to the Prime Minister Pradeep Saputhanthri, Chief of Staff to the President and Commissioner General of Essential Services Prabath Chandrakeerthi, Secretary to the Ministry of Housing, Construction and Water Supply Engineer L. Kumudu Lal Bogahawatta, Additional Secretary to the Ministry of Defence K.C. Dharmathilaka, and representatives from civil society organizations.
[Prime Minister’s Media Division]
News
Burning of low-grade coal at N’cholai plant increases pollution: Parliament
Parliament yesterday (30) said the use of inferior quality coal at Norochcholai Lak Vijaya coal-fired power plant caused environmental pollution.
The Opposition has accused the Energy Ministry of importing low quality coal and the CEB has directly blamed the developing crisis in coal imported from South Africa.
The Parliament is scheduled to debate a no-confidence motion moved by SJB-led Opposition against Energy Minister Kumara Jayakody on 10 April.
The Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability has instructed officials to immediately prepare a plan for the environmentally friendly disposal of ash emitted from the Norochcholai Lak Vijaya Power Plant.
These instructions were given at a recent meeting of the Committee held in Parliament, under the Chairmanship of Member of Parliament Hector Appuhamy.
It was revealed during the meeting that due to issues related to the quality of coal imported to Sri Lanka for power generation, the volume of ash emitted during electricity generation had increased significantly. Officials were directed to formulate a plan under the leadership of the District Secretary of the Puttalam District, to take the necessary measures.
It was also proposed that the possibility of reusing the coal ash for production purposes be studied, and that any revenue generated from such products be utilised for welfare projects benefiting the communities affected by the power plant.
In addition, the Committee instructed the Central Environmental Authority to submit a comprehensive report on whether water and air pollution have occurred as a result of the Norochcholai Power Plant. Furthermore, the North Western Provincial Environmental Authority was also instructed to provide responses within two weeks regarding the questionnaire and related matters submitted by the Committee in connection with the Norochcholai Power Plant.
Officials of the North Western Provincial Environmental Authority stated that although the volume of ash emitted from the plant had increased, the filtration system in use at the plant was sufficient to absorb it. Several matters, including the issuance of environmental protection licenses for the power plant, were discussed at the committee meeting.
News
Tariff shock from 01 April as power costs climb across the board
By Ifham Nizam
Electricity consumers will face a fresh financial jolt from 01 April, with the Public Utilities Commission of Sri Lanka (PUCSL) approving a countrywide tariff increase that will push up monthly bills across all consumption categories, with the heaviest burden falling on high-end users.
The decision follows a proposal by the Ceylon Electricity Board (CEB), which sought a 13.56 percent upward revision for the second quarter of the year, citing mounting operational costs and financial pressures within the power sector.
Under the new tariff structure, even the lowest-income households will not be spared, though the increases at the bottom tiers remain relatively modest. Consumers using between 0–30 units will see a 4.3 percent rise, adding approximately Rs. 15 to their monthly bill. Those in the 31–60 unit bracket will experience a 6.9 percent increase, translating to an additional Rs. 45.
For middle-tier users, the impact becomes more pronounced. Households consuming 61–90 units will pay around Rs. 120 more per month, following a 6.9 percent hike, while those in the 91–120 unit range will face a sharper increase of 7.1 percent, pushing their monthly costs up by about Rs. 420.
However, the steepest escalation is reserved for heavy electricity users. Consumers exceeding 180 units will be hit with a staggering 25 percent increase — the highest adjustment under the latest revision — raising serious concerns over affordability, particularly for urban households and small businesses already grappling with rising living costs.
Energy sector analysts warn that the latest revision signals deeper structural issues within the power sector, including reliance on costly thermal generation, currency pressures, and inefficiencies in energy procurement.
“The burden is gradually shifting toward consumers as the sector struggles to maintain financial stability,” a senior power sector analyst said, noting that repeated tariff adjustments could further strain public tolerance.
The PUCSL maintained that the revision was necessary to ensure the sustainability of electricity supply and to prevent a recurrence of crises that previously led to widespread outages and load shedding. The regulator has also indicated that cost-reflective pricing remains a key policy direction, particularly as global energy markets remain volatile.
The move comes at a time when many households are still adjusting to broader economic pressures, including high food prices and transport costs, raising fears that the tariff hike could have a cascading effect on the cost of living.
Small and medium enterprises, already operating on thin margins, are also expected to feel the pinch, with higher electricity costs likely to feed into production expenses and retail prices.
Despite the increases, questions remain over whether the tariff revision alone will be sufficient to stabilise the financially strained power sector, or if further adjustments — or reforms — may be inevitable in the months ahead.
With electricity demand steadily rising and generation costs remaining unpredictable, consumers now brace for yet another phase of higher utility bills, underscoring the fragile balance between energy security and economic resilience.
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