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Budget 2024 aims to boost social spending while tracking tax evaders

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By Sanath Nanayakkare

The budget proposals presented by President and Finance Minister Ranil Wickremesinghe in parliament yesterday for the Financial Year 2024 contained a lot of emphasis on social spending while being mindful of closing loopholes in the tax system where many ‘taxable individuals and institutions’ are still evading taxes.

Thus the submission of a Tax Identification Number (TIN) will become mandatory for actions such as opening a bank current account, obtaining approval for a building plan or registering motor vehicles in line with the budget proposals.

Further, a withholding tax on gem and jewellery transactions, an income tax on Unit Trusts and Unit Holders and prosecution action against failures to file tax returns are on the cards.

The Finance Minister before starting to read out the budget proposals for the financially-troubled nation acknowledged the fact that not only the 1.3 million strong public servants but also millions of others making a living in the informal sector were in deep economic misery. He said that the tax base needs to be increased to support the vulnerable groups without resorting to money printing or further borrowings. Having said so, he proposed that the state employees’ cost of living allowance be increased by Rs. 10,000 from January, 2024.

He proposed that it would be added to the monthly salary from the month of April 2024 and the balance accumulated from January to March 2024 would be paid in installments within a 6 month period, starting from October 2024. He also mentioned that the monthly cost of living allowance of public pensioners would be increased by Rs. 2,500.

“The distress loan facility given to state employees which is in suspension now would be restored from January 01, 2024. Rs. 205 billion would be allocated for benefit programmes targeting disabled individuals, CKDU patients, and senior citizens. Estate workers will get freehold land. Rs. 10 billion would be allocated to facilitate the development of abandoned estates and lands and Rs. 600 million will be allocated to the ‘Bim Saviya’ programme. We will completely stop collecting rent from the low-income families living in houses constructed by the Urban Development Authority. The full ownership of these houses will be given to those families,” he said.

However, the Finance Minister stressed on the need to meet a state revenue target of Rs. 3,415 billion for the Year 2024 to implement the above proposals and many other social spending proposals he made. He said that the tax base needs to be broadened and tax administration would be streamlined in 2024 to raise government revenue.”

Reproduced below are some highlights from the budget speech.

Rs. 50 billion to be allocated to assist SMEs through a loan scheme introduced by the Asian Development Bank

Four new universities to be established soon

Rs. 2 billion to be allocated for repairing of old bridges

A 25-member committee to be appointed to recommend reforms for the education system

Allocations for state universities for required enhancements

SLIIT, Horizon Campus, Royal Institute and NSBM to be elevated to universities

‘Suraksha’ student insurance to be reintroduced

Rs. 100-million allocation to boost medical tourism

Rs. 2,500 million for the development of Fisheries and Agriculture

Rs. 2000 million for resettlements in the North and East

Rupees 2 billion for development of rural roads

Rs. 55 billion to resume infrastructure projects halted due to economic crisis

Rs.1.5 billion allocation to develop provincial and school cricket

Recommencement of Central Expressway construction work

Establishing new investment zones in Hambantota, Jaffna, Trincomalee, Bingiriya and Kandy

Rs. 3 billion for establishing a national center for Artificial Intelligence

Measures to create a green economy in Sri Lanka to shift to a faster growth trajectory



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Sri Lanka Tourism makes a strong impression at CMT 2026 in Stuttgart, Germany

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Sri Lanka Tourism marked its presence at CMT 2026, held in Stuttgart, Germany, one of the largest consumer travel fairs in Europe. The Sri Lanka Stand accommodated representatives from the local tourism industry, providing a valuable platform to connect directly with the German travel community, particularly travellers with long-haul travel intentions.

Sri Lanka’s participation at CMT 2026 enabled direct engagement with consumers and helped stimulate interest in exploring the country’s diverse and year-round travel experiences. This presence addressed a long-standing need for Sri Lanka Tourism to participate in major consumer-focused travel platforms, effectively taking destination promotion directly to the travellers’ doorstep.

A wide range of travel packages, customised itineraries, accommodation options, and experiential offerings were presented to interested German consumers by Sri Lankan DMCs, under the umbrella of Sri Lanka Tourism. The platform also allowed potential travellers to clarify concerns and queries related to planning travel to Sri Lanka through direct, face-to-face interactions with industry professionals.

These direct engagements enabled Sri Lankan industry participants to gain valuable insights into emerging travel interests, changing consumer behaviour, and evolving customer expectations in the German market. The face-to-face discussions with end consumers strengthened the industry’s understanding of demand trends and product requirements.

Strategically, Sri Lanka Tourism’s focus on B2C promotions serves as a catalyst for strengthening B2B platforms, ensuring that final decision-makers—the travellers—are actively engaged alongside trade partners. This alignment enhances the overall effectiveness of trade collaborations. Well-designed consumer promotion activities, including giveaways, contests, experiential engagements, and cultural performances, created emotional connections with visitors, improved destination recall, and reinforced Sri Lanka’s positioning as a compelling long-haul destination. (Sri Lanka Tourism)

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Adora raises the bar for hospital-backed aesthetic care in Wattala

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Dr. Piyumini Gunasekara on advanced non surgical treatments

Hemas Hospitals has strengthened its regional healthcare positioning with the launch of Adora Cosmetic Centre at Hemas Hospital Wattala, introducing a hospital-backed, clinically governed model of aesthetic medicine at a time when South Asia’s cosmetic sector is expanding faster than regulation.

Unlike standalone cosmetic clinics, Adora is fully integrated into the Hemas Hospital ecosystem, embedding aesthetic services within hospital-grade infrastructure, multidisciplinary medical support and internationally aligned clinical governance.

Speaking at the launch, Dr. Lakith Peiris, Managing Director of Hemas Hospitals & Labs, said the centre represents a deliberate shift in strategy.

“Adora is not about cosmetic enhancement alone. It is built on protocols, trained clinicians and governance. As healthcare providers scale across the region, safety and medical credibility must remain non-negotiable,” he told The Island Financial Review.

The centre is positioned as a health-class facility, combining advanced aesthetic technologies with evidence-based medical pathways. This approach addresses growing regional concerns over unregulated cosmetic practices, offering patients reassurance through professional oversight and ethical medical standards.

Prabhan Gunawardena, Director General Manager of Hemas Hospital Wattala, said the initiative reflects both clinical responsibility and business foresight.

“The cosmetic industry is evolving rapidly across South Asia. Adora demonstrates how innovation can be scaled responsibly when anchored in medical expertise and hospital governance,” he said.

Detailing the centre’s scope, Dr. Piyumini Gunasekara, Medical Officer – Adora Cosmetic Centre, said treatments are designed to address medical and aesthetic concerns through personalised, evidence-based care.

She told The Island Financial Review:”We offer advanced non-surgical treatments for concerns such as hyperpigmentation, acne and acne scarring, fine lines and wrinkles, collagen loss, enlarged pores, rosacea, UV damage, excessive sweating, warts and moles. Every procedure is clinically assessed and delivered within a hospital-backed framework to ensure safe and sustainable outcomes.”

Clinical governance remains central to operations, reinforced by Dr. Malith Atapattu, Director – Medical Services and Quality, who highlighted the importance of protocol-driven care in a sector often challenged by inconsistent standards.

As Sri Lanka positions itself as a regional healthcare and medical tourism destination, hospital-led aesthetic centres such as Adora signal a broader industry shift—where growth is aligned with governance, trust and long-term sustainability.

For Hemas Hospitals, Adora represents a calculated entry into a high-growth segment without compromising medical integrity. For the region, it underscores a clear message: the future of aesthetic care lies in hospital-backed, clinically governed models—not cosmetic shortcuts.

By Ifham Nizam

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John Keells Consumer Foods Sector dominates SLIM National Sales Awards 2025 with landmark wins

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The John Keells Consumer Foods Sector (JKCF) has reinforced its standing as a powerhouse in Sri Lanka’s FMCG industry with an exceptional performance at the SLIM National Sales Awards 2025, securing an impressive total of 27 awards. This remarkable achievement reflects the sector’s unwavering commitment to building high-performing teams, nurturing sales excellence, and driving sustained growth across its diverse business verticals.

Representing the iconic brands of Ceylon Cold Stores PLC (CCS), Keells Food Products PLC (KFP), and Colombo Ice Company (CICL), JKCF has long been recognized for its rich legacy of innovation and leadership in beverages, frozen confectionery, and processed foods. Its long-standing focus on people capability and performance culture continues to fuel industry-leading achievements, with the latest recognition at SLIM NSA 2025 marking one of the largest collective wins by a single organization in the event’s history.

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