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Finance Secy. expects early resumption of ‘fresh financing for high quality priority projects’

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Secretary to the Treasury Mahinda Siriwardana has said that the government hopes that the debt treatment chapter will soon be closed, and it would be possible to resume fresh financing for high quality, priority projects.

Siriwardana said so at the ‘2024 China Aid Training Alumni Reception’ at the Kingsbury Hotel, Colombo on Wednesday (30).

“We all know how complex and technically challenging this debt treatment process has been both in terms of ensuring compatibility with the IMF’s Debt Sustainability Analysis (DSA) as well as ensuring Comparability of Treatment with other creditors. This was possible with Chinese lenders, given the mutual trust and good faith demonstrated by both sides.”

Among those present were Chinese Ambassador Qi Zhenhong and Economic and Commercial Counsellor Tang Yandi.

Siriwardana appreciated what he called unwavering support in facilitating the successful participation of Sri Lankan public sector officials in various training programs in China over the past years.

“We have noted that, since its initiation, China has provided more than 8,000 training opportunities in various fields such as health, education, industry, and construction for public sector officials in Sri Lanka. It is impressive that Sri Lanka now receives nearly 1,000 training programmes each year from the Chinese government.”

Further, we cannot forget that China’s support for Sri Lanka has been instrumental in the country’s development, particularly in the realm of infrastructure and economic assistance. Over the years, China has invested billions of dollars in various projects, including ports. These investments aim to enhance Sri Lanka’s logistical capabilities and boost its position as a regional trade hub.

Furthermore, China has extended financial aid and loans to help Sri Lanka address its economic challenges, especially during times of crisis. Overall, China’s ongoing support plays a vital role in Sri Lanka’s aspirations for economic growth and modernization.

China has also played a pivotal role in supporting Sri Lanka’s debt treatment efforts in response to the unprecedented, deep and most complex economic crisis experienced since mid-2021. Exactly a year ago, in October 2023, China was the first among the official sector creditors to announce an Agreement in Principle (AIP) on the key financial terms for the treatment of debts owed by Sri Lanka to Exim Bank of China.

Subsequently, following cordial and constructive discussions, the two sides reached a final agreement on debt treatment terms in June 2024, on the same day when a similar MoU was signed with the Official Creditor Committee (OCC) comprising 17 official sector lenders to Sri Lanka and co-chaired by France, India and Japan. Subsequently, following the agreement coming into force, Exim Bank of China became the first external lender to conclude the debt treatment process. Excellent progress has also been made on the debt treatment relating to China Development Bank (CDB). We are now in the final stages of finalizing Comparability of Treatment (CoT) matters for CDB relating to the OCC.

Ambassador Zhenhong told the gathering that as a Chinese saying goes, “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” China’s foreign aid training is a concrete action to implement global development initiative raised by President Xi Jinping and an important measure to promote the building of a community with a shared future for mankind. China’s foreign aid training adheres to the concept of sharing, consultation and co-construction, builds a platform for countries to exchange experience in governance, and fully shares the successful experience of Chinese modernization. Since China launched foreign aid training programs in 1950, it has trained more than 510,000 people for developing countries.

The Chinese government attaches great importance to all-round educational cooperation with Sri Lanka. Over the years, it has used foreign aid funds to hold various training programs in China, inviting nearly 13,000 Sri Lankan friends of various circles to participate in seminars in China. By the end of October this year, more than 1,000 Sri Lankan participants went to China for training, and the training topics covered 17 major areas including public management, scientific research, information technology, economy and trade, education, health, agriculture, forestry, animal husbandry and fishery, resources and environment, and disaster management. Through mutual learning and exchanges, we have grown together and deepened the traditional friendship between our two countries.”



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Highest revenue in 93-year history of Inland Revenue Department collected in 2025

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The Inland Revenue Department has succeeded in collecting Rs. 2,203 billion in revenue in 2025, the highest amount recorded in its 93-year history. This represents a surplus of Rs. 33 billion over the revenue target for the year and a 15 per cent increase compared with the revenue collected in the previous year, stated Commissioner-General of Inland Revenue Ms Rukdevi Fernando.

She made these remarks at a discussion held on Tuesday (30)  morning at the Department’s auditorium under the patronage of President Anura Kumara Dissanayake.

Marking the first occasion in the 93-year history of the Inland Revenue Department that a President has visited the Department, the President attended a meeting with the staff  to review the progress achieved in 2025 and the new plans for 2026.

The President expressed his appreciation to all officers and staff of the Inland Revenue Department for surpassing the revenue expected by the Government and urged everyone to continue working towards a common objective in order to realise the economic transformation required for the country.

Emphasising that no individual is entitled to the privilege of evading taxes, the President stated that the era in which a tax culture prevailed based on personal or political affiliations has come to an end. He further stressed that the law will be enforced without hesitation, irrespective of status, against those who attempt to evade taxes.

The President also pointed out that tax collection is neither repression nor coercion but a legitimate right of the State, adding that necessary changes will be made to laws, regulations, designations and staffing in order to secure this contribution.

He further emphasised that the Government’s objective is to ensure that the benefits of these economic achievements flow to the people of the country. The Government is focusing on improving essential public services to enhance the quality of life, undertaking a new transformation of the transport system and providing adequate allocations for the development of the education and health sectors.

The President also highlighted the need for a targeted programme to properly collect the taxes due to the Government by addressing issues such as improving tax literacy, simplifying the tax system and filling staff shortages.

Ms Rukdevi Fernando stated that the professional competence and dedication of the Department’s officers were the key factors behind this success.

She further noted that a revenue target of Rs. 2,401 billion has been set for 2026 and that the Department expects to achieve this through programmes aimed at enhancing tax compliance and broadening the tax base.

In addition, she said that the Department plans to expand third-party data sharing, strengthen investigations into domestic and overseas assets, take over the RAMIS system, reinforce risk-based auditing, introduce e-invoicing, adopt modern technology for tax administration and enhance tax ethics in 2026.

Minister of Labour and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando, Deputy Minister of Economic Development Nishantha Jayaweera, Secretary to the President Dr Nandika Sanath Kumanayake, Commissioner-General of Inland Revenue Ms Rukdevi Fernando and senior officials and staff of the Department were present at the occasion.

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Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

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The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday  (30)  morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs,  S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.

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Educators slam govt. for ‘unprepared’ education reforms

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Teachers, principals and education professionals have said the government is unprepared to roll out proposed education reforms scheduled to take effect from next week, and warned of nationwide trade union action if the plans are implemented without adequate consultation and preparation.

Addressing a press conference in Colombo, President of the Association of Education Professionals, Ven. Ulapane Sumangala Thera, said Ministry officials had indicated that the reforms would be implemented from Monday, 05 January, but claimed that the vast majority of educators were opposed to the move.

“More than 90 percent of teachers say they have not received proper training on the new syllabus or the proposed reforms,” Ven. Sumangala Thera said. He alleged that the government was attempting to suppress opposition from teachers and principals by declaring school holidays, instead of addressing their concerns.

“If the government continues with these tactics, we will have no option but to resort to trade union action at a national level,” he warned.

Meanwhile, representatives of 16 teachers’ and principals’ unions who visited the Ministry of Education at Isurupaya on Monday to seek clarification on the reforms were turned away by security officials, reportedly on the grounds that prior appointments were required.

Speaking to the media outside the Ministry, Amila Sandaruwan of the Teacher Principals’ Collective said the delegation had attempted to raise their concerns during the Public Day allocated for visitors. “We wanted to know how these reforms are to be implemented and sought to meet the Secretary to the Ministry of Education, but we were barred,” he said.

Sandaruwan accused the Government of proceeding in an “adamant” manner and claimed the reforms were being driven by a handful of non-governmental organisations closely associated with senior ministry officials. “We will not allow this to happen,” he said.

Graded Principals’ Association representative Nimal Mudunkotuwa said widespread confusion prevailed among teachers and school administrators regarding the practical aspects of implementing the reforms. “There is no clarity on school hours—whether schools are to close at 1.30 p.m. as before, or continue until 2.00 p.m. as proposed,” he said.

He added that uncertainty also remained over the number of daily teaching periods, with conflicting statements suggesting either seven or eight periods. “Schools have yet to receive syllabus modules from the Ministry, and many schools lack smart boards and internet connectivity required to implement these reforms,” Mudunkotuwa said.

Ven. Ulapane Sumangala Thera strongly criticised the proposed reforms, describing them as “bastard reforms,” and accused the NPP Government of undermining the education system. He also raised objections to a unit in the proposed Grade Six English syllabus dealing with gay and lesbian relationships, claiming that senior Buddhist prelates, the Catholic Cardinal and other religious leaders had opposed its inclusion.

“The Government refuses to listen even to religious leaders,” he said.

Concerns were also raised at a National Sangha Council meeting held in Colombo on Monday evening at the Colombo Foundation Institute, organised to discuss the objectives of the proposed reforms. Addressing the gathering, Professor Venerable Induragare Dhammaratana Thera said the reforms required extensive discussion, consultation with subject experts and consideration of the experience of senior administrators.

He warned that the proposed changes could trigger the biggest crisis currently facing the country. “Implementing these reforms in this manner will harm future generations and could even destroy the present Government,” he said, likening the process to “forcing a round peg into a square hole.”

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