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COPF slams Treasury for delaying imposition of VAT on foreign digital and software providers
The Committee on Public Finance (COPF) told officials from the Ministry of Finance that the state was suffering a substantial revenue loss due to a delay in imposing VAT on foreign digital and software providers.
COPF Chairman Harsha de Silva, MP, said that had also created an unequal playing field for domestic digital and software providers.Even local travel booking agents were subject to VAT, while websites such as Booking.com had been exempted, the COPF said.
The Ministry officials said they were awaiting the introduction of a new law to impose VAT on foreign service providers.The COPF members said the officials had to put in place a mechanism to collect taxes and create an equal playing field until the new law was made.
The COPF also deliberated on the Social Security Contribution Levy (Amendment) Bill. The amendment to the Act, lowering the turnover threshold of registration for the Social Security Contribution Levy from Rs. 120 million to Rs. 60 million per annum, effective from 01 January 2024, had been approved by the Committee.
However, the chair raised concerns about the need for maintaining two separate tax structures.He suggested consolidating the taxes under the VAT, which would result in an average effective rate of 22 percent when combined with the Social Security Contribution Levy. In response, the Ministry of Finance said their objective was to meet revenue targets and that they intended to use that approach pending transition to a more streamlined tax system.
Furthermore, the COPF also queried the Officials about the progress of recovering the lost revenue resulting from the initial ‘sugar scam’, as highlighted in the report by the Auditor General. Officials contended that it should not be classified as a tax loss, but rather as tax foregone due to the reduction of the special commodity levy from Rs 50 to 25 cents. Despite that explanation, the Committee asked the officials to furnish data on certain companies that had disproportionately profited from the tax adjustment.
The COPF Chairman raised questions regarding the Government’s inability to recover the outstanding forgone tax, especially in light of substantial tax hikes such as those on PAYE and VAT affecting the average Sri Lankan. Officials said they had been able to reclaim only 30% of the improperly accrued tax through corporate tax, leaving the remaining 70% uncollectable within the existing tax framework. The COPF urged officials to explore options for retrieving the entire forgone tax revenue or propose new legislation to address such scenarios in the future and prevent their recurrence. While both the VAT (Amendment) bill and the Social Security Contribution Levy were endorsed by the Committee, the Chairman dissented, expressing the aforementioned concerns.
News
Food Security is vital to ensuring a Nation’s Sovereignty and National Security – Prime Minister
Prime Minister Dr. Harini Amarasuriya stated that, in the face of the turbulent global environment prevailing today, agriculture is confronting significant challenges, and that food security is a crucial factor affecting a country’s stability, sovereignty, and national security.
The Prime Minister made these remarks on 28 of April at the Waters Edge, Battaramulla, while addressing the National Youth Agripreneur Showvase and B2B connect Conference organised under the Smallholder Agribusiness Partnership Programme (SAPP), funded jointly by the International Fund for Agricultural Development (IFAD) and the Government of Sri Lanka. The programme aims to empower rural youth to engage in agribusiness ventures.
Addressing the gathering, the Prime Minister further stated:
“I commend the organisers for successfully conducting this event despite the various challenges faced by the country.
You are playing an important role in both the agricultural sector and the national economy. I am happy to witness talented agri-entrepreneurs such as yourselves.
Food security, founded on agriculture, directly impacts a nation’s national security. Concepts such as ’Grow and Sell’ contribute significantly to strengthening the production economy.
During the COVID crisis, as well as amidst the current conflicts in the Middle East, it has become evident that if countries lack food security, their economies become vulnerable. Even a minor decision taken by leaders can disrupt supply chains.
Climate change also poses serious challenges to agriculture. When climatic and environmental conditions become difficult to predict, agriculture itself is threatened. In such a context, your contribution as agri-entrepreneurs goes beyond earning an income. It is also a direct contribution to the nation’s food security and, consequently, to national security. Your talents and innovations are important not only to yourselves, but to the people of the country as a whole”.
The Prime Minister also expressed gratitude for the support extended by institutions such as IFAD and SAPP, and conveyed best wishes to the country’s creative entrepreneurial youth.
The occasion was attended by the Minister of Agriculture, Livestock, Land and Irrigation K.D. Lalkantha; Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe; Secretary to the Ministry of Agriculture, Livestock, Land and Irrigation D.P. Wickramasinghe; Additional Secretary of the Ministry Lathisha Priyanthi; Director of SAPP Sunimal Chandrasiri; and several other distinguished guests.

(Prime Minister’s Media Division)
News
Explanation sought from AKD on ‘Russian energy supplies’
The National Patriotic Front (NPF) has said the NPP government owes the public an explanation regarding the status of negotiations with Russia to secure energy supplies.
NPF General Secretary Dr. Wasantha Bandara said that Sri Lanka was in such a desperate situation, the current dispensation couldn’t, under any circumstances, miss the opportunity to reach consensus with Russia in this regard.
Dr. Bandara was responding to The Island query in the wake of the NPF, in a letter, dated 27 April, warning President Anura Kumara Dissanayake of the catastrophic consequences for the country if it failed to obtain energy supplies on affordable terms.
Alleging that various interested parties, within the government, and the Western diplomatic community, hindered the successful conclusion of an agreement/agreements between Sri Lanka and Russia, Dr. Bandara pointed out that those in authority seemed to have conveniently forgotten that Sri Lanka received two Russian delegations. In late March and early April 2026, Russian Deputy Energy Minister Roman Marshavin and Deputy Foreign Minister Andrey Rudenko, visited Colombo where the focus was on long-term fuel supplies, investment, and tourism.
Dr. Bandara said that Anura Karunatilleke, who succeeded Energy Minister Kumara Jayakody, embroiled in the coal scam, was yet to meet the Russian Ambassador in Colombo Levan Dzhagaryan, who wants to explore ways and means of expediting the process. Instead,

British High Commissioner Andrew Patrick meets Energy Minister
Karunatilleke and Deputy Civil Aviation Minister Janaka Ruwan Kodithuwakku
Karunatilleke and Deputy Civil Aviation Minister Janaka Ruwan Kodithuwakku recently met British High Commissioner Andrew Patrick, Dr Bandara said. Referring to BHC post that they discussed how Sri Lanka could maximise its ports and airports, including through existing and new UK partnerships, alongside UK support for green energy, particularly offshore wind, Dr. Bandara emphasised that the UK and EU struggling to meet their own energy demands couldn’t help Sri Lanka.
In the NPF letter to President Dissanayake, Dr. Bandara alleged that Sri Lanka could secure a barrel of Russian crude for USD 150 to 160 whereas procurement through India cost a lot more. The NPF emphasised the responsibility on the part of the NPP government to maintain close relations with China, Russia and Iran, Sri Lanka’s long-time friends.
The NPF has urged President Dissanayake to intervene without further delay to ensure national interest in this matter is given utmost importance.
Dr. Bandara pointed out that those in charge of coal procurement told a parliamentary committee how the trouble started after Sri Lanka moved from Russian coal to South African products through disgraced Indian firm Trident Chemphar Ltd. Dr. Bandara asserted that political parties, represented in Parliament, should take up this matter vigorously and shouldn’t be distracted by vile NPP strategies.
By Shamindra Ferdinando
News
US reiterates its commitment to enhancing relations with Northern Sri Lanka
The US Embassy in Sri Lanka, on April 26, celebrated the 15th anniversary of American Corner Jaffna (ACJ), highlighting its longstanding role in connecting communities in Northern Sri Lanka with the United States through programmes focused on education, innovation, and American values. The Embassy also inaugurated the new “Freedom 250 Pavilion,” part of the global Freedom 250 initiative commemorating 250 years of American independence, the Embassy said in a press release issued yesterday (27)
Speaking at the event, US Embassy Public Affairs Officer Menaka Nayyar said: “American Corner Jaffna reflects the United States’ commitment to sharing American values, culture, and ideas with the people of Northern Sri Lanka. On July 4, 2026, the United States will celebrate 250 years of independence—a milestone that highlights our founding ideals and partnerships around the world, including here in Jaffna. Through the new Freedom 250 Pavilion and our programs, we invite the community to engage with the United States and learn more about our history, society, and innovation.”
In 2025 alone, ACJ hosted nearly 400 programmes, reaching more than 10,000 participants. Located at No. 23, Athiyady Road, Nallur, Jaffna, American Corner Jaffna provides free access to resources on the United States, English language learning, educational advising, and skills-based programming.
Established in 2011, in partnership with the Jaffna Social Action Centre, American Corner Jaffna was created as a platform for direct engagement with local communities—offering opportunities to learn about the United States while building skills in critical thinking, leadership, and innovation.
Launched in the post-conflict period, the Corner has played a key role in connecting emerging leaders in Northern Sri Lanka with ideas, resources, and opportunities rooted in American experience and perspectives. The Freedom 250 Pavilion expands ACJ’s capacity to host interactive programmes and community events, reinforcing the Corner’s role as a dynamic space for collaboration, dialogue, and learning.
Individuals can take part in free programmes by visiting American Corner Jaffna in person, contacting the Corner at 021 222 0665 or via email at info@americancornerjaffna.com, and following American Corner Jaffna on Facebook (facebook.com/amcornerjaffna) for the latest updates on events, registration, and membership opportunities.
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