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.”
The Bank recorded a Profit before Income Tax (PBT) of LKR 16.04 Bn for the period under review with a 59% growth over the previous year, while recording a Profit after Tax (PAT) of LKR 10.05 Bn for the year with a 61% growth over the previous year, demonstrating a robust performance despite challenging macro-economic conditions. The reported PAT of LKR 10 Bn is the highest performance in the Bank’s 36 year history.
Net Interest Income of the Bank was reported as LKR 37 Bn in 2024 compared to LKR 40 Bn reported in 2023 with a decline of 8% corresponding to reduction in Net Interest Margins during 2024, due to reduction in market interest rates throughout the year.
Net fee and commission income of the Bank reported a growth of 7% to LKR 8 Bn compared to LKR 7.4 Bn reported in the previous year. The growth in 2024 was mainly due to increase in income from Cards, Remittances and other services relating to Lending.
The Bank’s net gains from trading reported a gain of LKR 0.46 Bn, a decrease of 44% over the gain of LKR 0.82 Bn reported in previous year due to exchange / interest rate changes.
Net gains / (losses) from de-recognition of financial assets reported a loss of LKR 0.26 Bn in 2024, compared to the gain of LKR 0.15 Bn reported in the previous year. The loss due to the restructuring of SLISBs amounted to LKR 2.71 Bn and was recorded in Q4 2024.
Other Operating Income of the Bank was reported as LKR 1 Bn in 2024, a growth of 5% over the previous year. This increase is mainly from foreign exchange income, which represents both revaluation gain/ (loss) on the Bank’s net open position and realized exchange gain/ (loss) on foreign currency transactions.
The Bank’s Total Operating Income decreased by 11.6% to LKR 44 Bn in 2024 compared to LKR 49 Bn in the previous year mainly due to decrease in net interest income and the loss on restructuring of SLISBs.
The Bank made impairment provision to capture the changes in the macro economy, credit risk profile of customers and the credit quality of the Bank’s loan portfolio in order to ensure adequacy of provisions recognized in the financial statements. The impairment charge on Loans and Advances and other credit related commitments amounted to LKR 6.6 Bn (2023 – LKR 15.5 Bn). The impairment reversal due to the SLISBs exchange amounted to LKR 4.9 Bn (2023 – LKR 1.5 Bn charge).
(Seylan Bank)
By Ifham Nizam
For decades, many rural communities in Sri Lanka have struggled with an unreliable power supply, outdated infrastructure, and slow responses from authorities. However, a new initiative aims to change this narrative, bringing hope to thousands in the Galle District who have long been in the dark—both literally and figuratively.
Speaking to The Island Financial Review, Dr. Chathura Welivitiya, CEO of HELP-O, an expert in infrastructure development, emphasizes the importance of this project, stating, “Access to reliable electricity is not just about lighting homes; it is about empowering communities, enabling education, fostering business opportunities, and ensuring overall development.”
He said in many villages, the lack of a stable electricity supply has hindered progress. Residents report frequent power outages, damaged lines left unattended for weeks, and new connections taking months—if not years—to be processed. Such issues have not only inconvenienced households but have also impacted local businesses, schools, and healthcare facilities.
According to a Weligama Municipal Council official: “Our children cannot study at night due to power failures. Businesses suffer because they cannot store perishable goods properly. We have raised complaints multiple times, but the response has been slow.”
Recognizing these challenges, a new project has been launched to address the inefficiencies in power distribution. The initiative includes:
Expansion of the Electrification Network: Efforts to extend power lines to remote areas that still rely on kerosene lamps or battery-operated sources.
Upgrading Infrastructure: Replacement of outdated transformers, damaged poles and weak wiring systems to ensure a stable and safe electricity supply.
Community Engagement: A digital reporting system that allows residents to highlight issues in real time, ensuring faster response and accountability from relevant authorities.
Sustainability Measures: Exploration of renewable energy options, such as solar power, to complement the grid and provide backup solutions for power outages.
Dr. Chathura explains, “This project is not just about fixing wires and poles; it is about creating a sustainable and efficient system that meets the growing energy demands of rural areas. Transparency and community participation are key to its success.”
The Southern Province Governor Bandula Haischandra has voiced strong support for the initiative, recognizing its potential to transform rural communities.
“Ensuring a stable electricity supply is a fundamental responsibility of the government, the Governor told The Island Financial Review. “For too long, these communities have been neglected. We are committed to fast-tracking infrastructure improvements and working closely with relevant authorities to resolve longstanding issues.”
The Governor further emphasized the role of accountability and efficiency in the implementation process. “We cannot afford delays and inefficiencies. With the use of modern technology, we are ensuring that complaints are addressed swiftly and that no village is left behind in development.”
Business
Elpitiya Plantations clinches fourth consecutive victory at Inter Plantation Cricket Tournament
Elpitiya Plantations emerged victorious at the 22nd Inter Plantation Cricket Tournament, organised by the Dimbula Athletic and Cricket Club, held on the 21st and 22nd of February 2025 at the Radella Cricket Ground.
The tournament saw participation from 11 plantation companies, showcasing exceptional talent and sportsmanship. Elpitiya Plantations, led by their dynamic captain Wajira Mannapperuma, demonstrated outstanding performance throughout the tournament.
The winning team from Elpitiya Plantations consisted of Wajira Mannapperuma, Asela Udumulla, Dilukshan Neshan, Lakshan Thenabadu, Kavinda Sulochana, Yasitha Koswaththa, Anushka Baddevithana, Kanishka Ranchagoda, Pramoth Bandara, and Sajith Edirisinghe.
In the semi-final match, Elpitiya faced Horana Plantations PLC and secured a decisive victory by bowling out the Horana team for just 20 runs within 4 overs, paving their way to the finals. The final match was a thrilling encounter against Talawakelle Tea Estates PLC, where Elpitiya’s formidable bowling lineup made it challenging for Talawakelle to score. Within the first four overs, Talawakelle’s top batsmen were back in the pavilion, allowing Elpitiya to clinch the championship title with ease.
This victory marks Elpitiya Plantations’ fifth overall win in the history of the tournament and their fourth consecutive triumph, having previously won in 2022, 2023, and 2024. The team’s consistent performance and dedication have solidified their reputation as a formidable force in plantation cricket.
The management of Elpitiya Plantations extends heartfelt congratulations to the team and expresses gratitude to all the supporters and organisers who made this event a grand success.
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