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CBSL Governor urges public to become informants to boost tax revenue

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ECONOMYNEXT –Central Bank Governor Nandalal Weerasinghe urged the public to become informants to broaden the tax net and thus reduce both overall direct and indirect taxes.

The government has raised Value Added Tax (VAT), an indirect tax to 18 percent from 15 percent with effect from January 1. The move also will see some VAT exempted goods like fuel, gas, health, and educational products are now subject to 18 percent tax.

The new move has raised prices of fuel, cooking gas, foods, private transport charges, and many other goods.

Sri Lankan citizens who are not used to paying higher taxes are also now forced to register for taxes and file for taxes on an annual basis. The move is expected to boost the government revenue to 15 percent of the gross domestic products (GDP) in 2026 from the last year’s 11 percent.

Analysts say most Sri Lankans are not ready to pay any taxes because they do not see any benefits for paying government taxes amid widely reported corruption allegations.

Weerasinghe, the central bank governor, who has been instrumental in navigating the monetary policy and maintaining the price stability of the bankrupted Sri Lankan economy said public needs to do their responsibility to reduce the overall taxes in the future.

“From the public side, they think why they always pay high taxes whereas others are not paying taxes. If the public want to reduce the taxes in the future, what I see is, while they pay their taxes, they should encourage others to pay taxes or inform the authorities (on those who are not paying taxes),” Weerasinghe told a television programme late on Monday (01) hosted by President’s Media Center (PMC).

“That is the way to reduce the amount of VAT or personal income tax they pay.”

Weerasinghe’s comments come as Sri Lanka is desperate to boost the government revenue in line with the commitment it agreed with the International Monetary Fund (IMF) in return of a $3 billion loan.

He also warned that some businesses may be engaging in VAT fraud. In countries where VAT works well, all businesses have to issue a VAT invoice to customers whether they are tax-paying businesses or members of the public.

Unlike income tax, where the state takes part of a person’s earned income, VAT charged from the public is not the income of a business, but a collection made on behalf of the state, analysts say.

“If we are paying PAYE (Pay As You Earn) tax, we have to pay that,” Weerasinghe said, referring to a tax that is deducted at the point of earning.

“But some business people who have the same income do not pay the tax and they keep double receipt books and without showing the real income, they show less income and pay less taxes.”

“If I am paying tax and if I know somebody else is not paying, then I can reduce my tax burden only by adding that person into the tax net.”

“In some places, when you buy goods, they ask if you want the invoice with or without that VAT. If I agree to pay less (for the invoice without taxes), then my tax burden will not ease ever.”



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Child abuse crisis: 108,000 complaints reported in 10 years

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More than 108,000 complaints of child abuse had been received by the National Child Protection Authority (NCPA) between 2015 and 2025, Women and Child Affairs Minister Saroja Savithri Paulraj told Parliament yesterday.

Responding to a question raised by Opposition Leader Sajith Premadasa under Standing Order 27/2, the Minister said 4,421 child abuse cases were pending before High Courts as of April 30 this year, with indictments already filed against the accused.

She said the NCPA was working with 47 Police Child and Women Protection Bureaus under the Police Children and Women Abuse Prevention Division to expedite the hearing and conclusion of these cases.

The Minister said measures were also being taken to protect child victims during legal proceedings by introducing a system to record their evidence through video in a safe and child-friendly environment, thereby reducing the need for them to appear in court.

She said discussions were underway with the Ministries of Health and Mass Media and other relevant institutions to establish nine provincial video evidence recording units.

by Saman Indrajith ✍️

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CA dismisses  writ petition seeking postponement of A/L exam

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The Court of Appeal yesterday dismissed a writ petition seeking to postpone the 2026 G.C.E. A/L Examination by two months.

The petition, filed by a group of students due to sit the examination for the first and second time, sought an order delaying the examination, which is scheduled to commence next month.

The Court announced its decision after considering submissions made in support of the application and declined to grant leave to proceed with the petition.

As a result, the 2026 G.C.E. Advanced Level Examination will be held as scheduled in August.

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Bimal’s remarks on MP’s conduct spark heated exchange in Parliament

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Leader of the House and Minister Bimal Rathnayake yesterday criticised the conduct of MP Archchuna Ramanathan in Parliament, describing the behaviour of certain lawmakers as “uncivilised, disgraceful and indecent”, while a heated exchange followed between government and opposition members.

Rathnayake made the remarks when Ramanathan attempted to raise a point of order during parliamentary proceedings.

“This parliament has one or two members who behave in a very uncivilised, disgraceful manner. We tolerate them because one of them is mentally ill,” Rathnayake said.

He alleged that Ramanathan had insulted even members of the Tamil community.

“The things he says may not be heard through the microphone, but the four walls of this Parliament are witnesses,” Rathnayake said, adding that Ramanathan’s conduct was not limited to Parliament.

He claimed that the Jaffna District Coordinating Committee meeting could not be held due to Ramanathan’s behaviour and said MP Gajendrakumar Ponnambalam had written to the Speaker stating that he could not sit near him.

The Speaker intervened during the exchange, warning Ramanathan not to behave in a manner that would turn Parliament into “a joke”. He also said the MP had previously addressed him in an insulting manner.

Opposition Leader Sajith Premadasa criticised the manner in which Rathnayake and the Speaker had addressed the matter, saying MPs should not be spoken to improperly and urging members to follow parliamentary Standing Orders.

Ramanathan, responding to the remarks, said: “I may be a psycho, but I am not a homosexual.”

by Saman Indrajith ✍️

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