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.”
By Ifham Nizam
A Rs.160 million-plus diesel discrepancy at the Lakvijaya power plant in Norochcholai has triggered an internal investigation, raising questions over the handling of public funds and the controls governing fuel purchased for electricity generation.
The discrepancy surfaced during an internal audit of diesel supplied to the plant from the Kolonnawa and Sapugaskanda fuel terminals, according to senior officials familiar with the inquiry.
The audit has identified five transactions—two in December 2025 and three in January 2026—in which diesel recorded as delivered to the plant allegedly could not be fully accounted for in its physical stocks.
The investigation is now examining whether these were isolated discrepancies or part of a longer-running practice.
One transaction under scrutiny relates to January 16, when records reportedly showed that 10 diesel bowsers had arrived at the plant. Investigators subsequently found indications that the fuel stock corresponded to only nine bowsers.
A storekeeper responsible for the relevant fuel operation has reportedly been temporarily removed from those duties pending the investigation.
A senior official said investigators were reviewing historical records amid indications that similar discrepancies may have occurred over a longer period. If established, the financial exposure could therefore exceed the Rs.160 million currently identified.
The investigation is comparing fuel-terminal dispatch records, tanker movements, plant-entry records, receiving documents and physical stocks to establish exactly how much fuel was dispatched, received and accounted for.
That audit trail will also be critical in determining who authorised, received and certified the disputed consignments, and whether established controls were followed.
Relevant documents were reportedly transferred from Norochcholai to the company’s Colombo head office on September 26 for further examination, with electricity-sector security personnel assisting in the transfer.
The internal audit has also reportedly uncovered expired chemical stocks worth several hundred thousand rupees in the plant’s stores. Investigators are examining whether further inventory-management irregularities occurred.
The matter was also reportedly taken to the Puttalam Police Special Crimes Investigation Unit on September 26.
When contacted by Puttalam-based journalist Hiran Priyankara Jayasinghe for The Island Financial Review, Lakvijaya Power Plant Manager Nalaka Kumara confirmed that an investigation was under way but declined to provide further details.
The financial issue is direct: if the plant paid for diesel it did not receive, public-sector funds were spent without the electricity sector receiving the corresponding fuel.
The Sri Lanka Food Processors Association (SLFPA) successfully convened its 29th Annual General Meeting (AGM) on September 23, 2026, at the Water’s Edge Hotel, Battaramulla. Bringing together key industry stakeholders and member organizations, the event served as a platform to review milestone achievements from the 2025/2026 term and outline strategic priorities for the nation’s food and beverage processing sector.
At the AGM, the new Executive Committee for 2027/2028 was appointed, comprising: Honorary President Aruna Senanayake C.W. Mackie PLC Imme. Past President Thusith Wijesinghe Trans Continental Packaging & Commodities (Pvt) Ltd.
President Elect Nadishan Guruge Meadlee Trading Co. (Pvt) Ltd.
1st Vice President Damitha Perera Forbes & Walkers Commodity Brockers (Pvt) Ltd.
2nd Vice President Rasika Seneviratne Diesel & Motor Engineering PLC 3rd Vice President Deepal De Alwis Neochem International (Pvt) Ltd.
Honorary Secretary Amila Weerasinghe Nestle Lanka Limited.
Asst. SecretaryDineth Alahakoon Country Style Foods (Pvt) Ltd.
Honorary Treasurer Sameera Jayathilaka Westmann Engineering Company (Pvt) Ltd.
Asst. Treasurer Niroshan Dalpethado C D De Fonseka & Sons (Pvt) Limited. In addition to the above office bearers, the following ten Executive Committee Members were appointed:
Sanjeewa De Silva Unilever Sri Lanka Limited Sheran De Alwis MA’S Tropical Food Processing (Pvt) Limited
Thusitha Ekanayake Anods Cocoa (Pvt) Ltd.
Vijitha Govinna Plenty Foods (Pvt) Limited Ms. Praharshi Wickramasekara International Commodity Exports (Pvt) Ltd.
Sanjeewa Niroshan SGS Lanka (Pvt) Ltd. Kushan Amarasinghe Finagle Lanka (Pvt) Ltd.
Rangajeewa Hettiarrachchi Fonterra Brands Lanka (Pvt) Ltd.
Harindra Abeyrathna Vision Technologies International (Pvt) Ltd. Thilina Weerasekara Ceylon Cold Stores PLC
The event was proudly supported by key industry partners, with SGS Lanka (Pvt) Ltd serving as the Platinum Sponsor. Unilever Sri Lanka Ltd. and Nestlé Lanka Ltd. joined as Gold Sponsors, Ceylon Agro Industries – Prima as the Silver Sponsor, while Lanka Exhibition & Conference Services (LECS) and Hero Nature Products (Pvt) Ltd., supported as Bronze Sponsors.
The proceedings concluded with a vote of thanks delivered by Hony. Secretary Deepal De Alwis, followed by cocktails and a fellowship networking session, providing an opportunity for members to connect and strengthen industry ties.
New premium ride option expands Uber’s portfolio from affordable Moto and Tuk rides to premium on-demand travel
Uber announced the launch of Uber Black in Sri Lanka, bringing its premium ride experience to the country for the first time. Designed as the “business class of back seats,” Uber Black combines premium vehicles and highly-rated drivers for riders looking for greater comfort, quality and a more elevated travel experience.
The launch comes as demand for premium products and experiences grows across Sri Lanka, with consumers seeking greater choice and quality in their everyday experiences. Uber Black brings this choice to on-demand mobility, whether for an airport journey, an important business meeting, a special occasion or simply when riders want to travel in greater comfort.
Rain stays away as India and Sri Lanka look for fair contest to enter final
Gold winner Tharanga gets brand-new Honda Vezel from SLAAJ
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Civil society activist accuses govt. of favouring Ven. Gnanasara
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