Business
Book industry stakeholders decry ‘further taxing of reading and learning’
By Ifham Nizam
Industry associations, academics and writers expressed concern over the long-term consequences of making books more expensive for the masses. All stakeholders stressed that they would go all out to bring justice to the book lovers and the industry, at a media briefing held at the SLFI on February 2.
Accordingly, Sri Lanka’s book industry called for an immediate reversal of the decision to impose a tax of 18% on the sale of books, in terms of the recent VAT revisions.
General Secretary of the Sri Lanka Book Publishers Association (SLBPA) Dinesh Kulatunga, in response to a query by The Financial Island Review said that over the past few decades, the local book industry has diligently produced books using imported paper, plates, inks, chemicals and machinery, consistently paying all required import taxes, including VAT.
He said that the cumulative amount contributed by the industry in the form of these taxes exceeds Rs. 1 billion. This tax has been levied on book production by both the state and private sectors.
Kulatunga added: “We have never sought subsidies for these activities. However, we are now respectfully requesting the government to reconsider this decision, as the ultimate burden of this additional 18% tax will fall upon the general public, including students, as a form of a tax on reading and learning.
“We wrote to the IMF that since gaining independence in 1948, our nation has been committed to providing books at an accessible cost to students, educators, education authorities, universities, and the general public. This was made possible by the absence of taxation on books, which serve as the primary repository of knowledge across a diverse range of subjects. Books are not merely a fundamental element of human civilization; they continue to mold our comprehension of the world around us. They serve as versatile tools that enrich our lives by disseminating and safeguarding knowledge, promoting communication, nurturing creativity and serving as educational, entertainment, and cultural resources.
“In the light of these circumstances, we earnestly requested the authorities to reinstate books under the exemption from VAT. We also requested an opportunity to engage in a further discussion regarding this matter, given its profound significance to a knowledge-based economy and our society as a whole. But there was no response.
“Countries like the UK, USA, India, China, Japan, Saudi Arabia, and Brazil, do not levy VAT on books. Therefore, we do not believe that the IMF has compelled the imposition of a tax on books; it may be an inadvertent error made by our officials. We are optimistic that they will reevaluate this decision.”
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 not to impose customs duties and taxes on certain educational, scientific, and cultural materials that are imported.
The Sri Lanka Book Publishers Association Past President, Vijitha Yapa said: “Last year in September when the 18 per cent VAT on books was announced, we met President Ranil Wickremesinghe and discussed about exempting books from VAT. The President said that that is one of the IMF conditions.”
Yapa also said nothing had happened since then. “After lobbying and writing letters to the Finance Ministry, relevant authorities and various ministers, we were asked to write to the IMF directly and sort things out as we were given to understand that it was an IMF condition and that the authorities have no control over it.”
Yapa added: “It is an obstacle towards the expansion of knowledge in this country as people can’t afford to buy books. Any book publisher or printer with a monthly turnover of over Rs. 5 million is liable for VAT on top of all the other taxes that are imposed when importing the raw materials for printing.”
Meanwhile, Writers Organization of Lanka, Secretary Kamal Perera told The Island Financial Review that:
“If we are talking about VAT on books, I think this will strongly affect the reader and the writer. In my opinion, they should be informed about the unfairness of this tax and raise a national-level protest that the rulers could feel.
“I see it as a very futile action to submit proposals to the government. It’s a failure like playing the harp for deaf elephants. It’s now very clear that this government will never listen to the people’s voice.
“I do not see any practical solution other than building a broad public opinion demanding the immediate removal of this unjust tax.”
Sri Lanka Books Importers and Exporters Association, President, Dinushi Abeywickreme stated, “It’s not just the 18 per cent VAT that is added to the price of the book, but an overall tax of 30 per cent, inclusive of other taxes and a price hike of all raw materials following the COVID-19 pandemic and economic crisis in Sri Lanka.”
A game-changer for Sri Lanka’s capital market
As the global community convened for the World Bank Group’s 2025 Spring Meetings under the timely theme “Jobs: The Path to Prosperity,” one message stood out: prosperity in the developing world depends not only on physical infrastructure but also on strong financial systems.
Among the influential voices at this year’s gathering was Douglas L. Peterson, Special Advisor to S&P Global and a longstanding advocate of resilient market economies.
Drawing from a decade-long tenure as CEO of S&P Global, Peterson delivered key insights that resonate deeply with the challenges and opportunities facing emerging economies such as Sri Lanka.
Peterson stressed that while global capital is abundant, it doesn’t move indiscriminately. “It follows signals, namely, data, transparency, regulatory certainty, labour and market stability.”
“When investors look to deploy capital in developing markets, they’re seeking a solid financial infrastructure,” Peterson said. “That includes reliable data, transparent pricing mechanisms, independent credit rating agencies, and clearly defined bankruptcy laws.”
These factors may not make headlines, but Peterson underscored their essential role.
“Financial infrastructure enables confidence, and confidence attracts investment,” he said.
A key initiative Peterson is championing in collaboration with the World Bank is titled ‘Originate to Distribute’, a structured finance approach where loans are created by institutions like the World Bank but sold to private investors.
Traditionally, loans from development banks remain on their balance sheets for decades. This initiative proposes standardising and structuring such loans so that private investors can purchase, pool, and trade them – essentially converting infrastructure loans into a new, tradable asset class.
“This is about creating velocity and scale,” Peterson said. “If the World Bank can originate loans and distribute them to the private sector, every dollar stretches further. It helps close the multi-trillion-dollar infrastructure investment gap.”
For countries like Sri Lanka, where public finances are under pressure, such a model could unlock significant private capital provided the regulatory environment and financial infrastructure are prepared to support it.
In alignment with the World Bank’s focus on job creation, Peterson prioritised five sectors he believes are pivotal for employment growth in developing nations: infrastructure (both physical and digital), agri-business, healthcare, tourism, and manufacturing. The common thread across all these sectors, he asserted, is infrastructure.
“Build an airport and you get hotels, transport services and even carbon savings,” Peterson said. “A bridge not only connects communities but also cuts costs, travel time, and emissions.”
According to Peterson, infrastructure investment yields a multiplier effect, often generating an additional $1.40 to $1.60 for every dollar spent. It also catalyses other industries. Manufacturing depends on roads and ports; tourism needs transport and energy; agriculture requires logistics and storage; and healthcare relies on reliable access and communication systems.
Peterson’s reflections also touched on a more structural issue that Sri Lanka is currently facing; the need to develop robust domestic capital markets. He emphasised moving beyond a banking-dominated financial system toward one that includes institutional investors like insurance companies and pension funds.
“These institutions become long-term investors,” he noted. “They form the foundation for sustainable infrastructure investment. Homegrown capital reduces reliance on external debt and increases financial resilience.”
Peterson’s remarks serve as a timely reminder as job creation and long-term prosperity in Sri Lanka will not come through piecemeal efforts. Instead, they require coordinated investments in both physical and financial infrastructure, from better roads and ports to regulatory frameworks that inspire investor confidence.
Unlocking private capital through trust, transparency, and smart financial engineering is the way forward. And as leaders like Peterson have shown, the tools and models already exist. It is now up to policymakers and financial leaders in Sri Lanka to ensure Sri Lanka is ready to embrace them.
Douglas L. Peterson currently serves on the board of the UN Global Compact and was formerly CEO of S&P Global, where he expanded the company’s market capitalisation from $16 billion to over $150 billion. He also led the G7 task force on sustainable finance in 2021.
By Sanath Nanayakkare
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) successfully organized a visitor delegation to Intersolar Europe 2025, held from 7 – 9 May in Munich, Germany. Recognized globally as one of the most significant and comprehensive trade fairs dedicated to the solar industry, Intersolar serves as a premier platform for showcasing the latest innovations in renewable energy and sustainable technologies.
The Sri Lankan delegation comprised senior representatives from prominent companies in the sector, including Mega Solar, Micro PC Systems, Eco Solar Rays, and Puwakaramba Building Solutions, reflecting the country’s growing commitment to advancing renewable energy solutions.
The primary objective of this visit was to provide Sri Lankan companies direct access to the latest developments in solar technology, including sustainable energy solutions, energy storage systems, e-mobility, floating solar applications, agrivoltaics and recycling solutions. By connecting local enterprises with cutting-edge technologies and global industry leaders, AHK Sri Lanka aims to facilitate the adoption of modern energy solutions in Sri Lanka and support the nation’s broader transition to a more sustainable and energy-secure future.
A key highlight of the delegation’s agenda was a strategic meeting with the organizers of Intersolar Europe. This engagement provided valuable insights into the exhibition’s future vision and fostered discussions on potential collaboration opportunities between German and Sri Lankan stakeholders in the renewable energy sector.
Further amplifying the value of the delegation, AHK Sri Lanka coordinated over 25 tailored B2B meetings between Sri Lankan companies and German/European industry counterparts. These curated matchmaking sessions enabled participants to explore commercial opportunities, initiate technical partnerships, and lay the groundwork for future investments and joint ventures.
Prime Group, Sri Lanka’s leading real estate brand with a 30-year legacy and international branches in Australia and Dubai, has named celebrated Sri Lankan music icon Umaria Sinhawansa as its Global Brand Ambassador. This partnership unites two Sri Lankan powerhouses to showcase local talent and excellence worldwide.
The collaboration aims to strengthen Prime Group’s global expansion while promoting Sri Lankan culture. Umaria, who bought her first property from Prime Group a decade ago, expressed pride in representing the brand. Prime Group’s Co-Chairperson, Sandamini Perera, highlighted Umaria’s embodiment of Sri Lankan heritage and global appeal, aligning with their mission to elevate the country’s real estate innovation.
Together, they aim to inspire trust, connect with international markets, and celebrate Sri Lanka’s cultural richness on a global scale.
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