News
Govt. corrals many more into tax net by lowering VAT threshold from Rs. 60 Mn to Rs. 36 Mn
Projected revenue at Rs. 5.3 Bn, budget deficit 1.75 Bn
Rs. 6,500 Mn allocated for Clean Sri Lanka initiative
Estate wages hiked to Rs. 1,750 from Rs. 1,350 per day
Rs. 1 Bn allocated to address human-elephant conflict
Rs. 342 Bn for road development programmes
The government has decided to reduce the annual turnover threshold for the registration of Value Added Tax and Social Security Contribution Levy from Rs. 60 million to Rs. 36 million.
The proposal will be implemented with effect from 01 April, 2026.
The new tax system has been proposed with the view of broadening the tax base, President Anura Kumara Dissanayake said during his 2026 Budget speech in Parliament yesterday.
He said that the total number of registered taxpayers in Sri Lanka has increased by 300,000 as of 30 September, 2025, compared to 2024.
The President made this revelation while delivering the 2026 Budget speech.
President Dissanayake also confirmed that the Simplified VAT System (SVAT) has been abolished with effect from 01 October, 2025, and has been shifted to an approved refund process to improve tax compliance and reduce misuse.
Presenting the Budget Proposals for the year 2026 commenced at 1.30 pm and continued till 5.57 pm.
According to the 2026 Budget proposal delivered by the President, the government’s expected revenue for 2026 is set at Rs. 5,300 million while the expenditure has been projected to be Rs. 7,057 million.
The Budget deficit will be Rs. 1,757 million or 5.1% of the Gross Domestic Product.
The government has proposed to remove the Special Commodity Levy on imported coconut oil and palm oil and implement the general tax structure including Value Added Tax.
The new tax system on imported coconut oil and palm oil will be implemented from April 2026, President Dissanayake said.
At present, locally produced coconut oil and palm oil are subjected to Value Added Tax and Social Security Contribution Levy, while imported coconut oil and palm oil are subjected to Special Commodity Levy at Rs. 150 per kilogram and Rs. 275 per kilogram, respectively.
The new tax proposal has been proposed to ensure a level playing field, the President stated.
President Dissanayake said that a total of Rs. 6,500 million has been allocated for the Clean Sri Lanka programme for next year.
President Dissanayake said that the land acquisition process for the proposed Kurunegala-Dambulla expressway is currently underway.
Accordingly, through the 2026 Budget, the government has allocated Rs. 1,000 million to complete the land acquisition process, the President said.
The government has allocated a sum of Rs. 342 billion for road development programmes in the 2026 Budget, President Dissanakaye stated. A total of Rs. 66.1 billion has been allocated for the Kadawatha-Mirigama section of the Central Expressway through the 2026 Budget.
Furthermore, Rs. 10.5 billion for the Pothuhera-Rambukkana and Rs. 20 billion for the Rambukkana-Galagedara section of the central expressway have been allocated through the Budget.
The President said that through the 2026 Budget, a sum of 25,500 million has been allocated to develop Sri Lanka’s digital economy. He also pledged to establish a Digital Economy Council next year.
The allocation will facilitate the infrastructure needs, streamlining investment processes and fostering an innovation-friendly environment.
The government has proposed to allocate an additional provision of Rs. 1,000 million to the Department of Wildlife Conservation to expedite the completion of electric fence constructions and related projects aimed at mitigating human-elephant conflict across the country, the President said.
In addition, Rs. 10 billion has been proposed for research initiatives to identify long-term, research-based solutions beyond the construction of electric fences to reduce these elephant-human conflicts, he said.
Estate worker wages are to be hiked to a total of 1,750 rupees a day, President Dissanayake said, presenting the Budget for 2026.
“We believe that estate workers should be paid a fair daily wage, commensurate with their work,” the President said.
The current minimum wage of an estate worker is 1,350 rupees a day.
An additional 200 rupees will be given daily by the government to encourage estate workers to come to work, Dissanayake said.
“This is as an incentive for them to show up for the 25 days.” The government will allocate 5,000 million rupees for this, he said.
The Budget Debate on the Second Reading of the Appropriation Bill will commence on 08 November and continue for six days. The vote on the Second Reading is scheduled for 14 November (Friday) at 6 pm.
The Committee Stage Debate is set to begin on 15 November and will continue for 17 sitting days, including three Saturdays, until 05 December. The vote on the Third Reading of the Appropriation Bill is to be taken up at 6 pm on 05 December.
During the budget period, Parliament will meet daily, except on Sundays and public holidays. Sessions will begin at 9.30 am on Mondays and at 9 am on other days. Each day’s sittings will continue until 6 pm, with time from 6 to 6.30 pm allocated for adjournment motions, shared equally between the Government and the Opposition, except on voting days.
In addition, during the Committee Stage Debate, provision has been made for five Questions for Oral Answers and one Question under Standing Orders 27(2), apart from the regular business under Standing Orders 22(1) to (6).
Latest News
Advisory for low pressure area in the Southwest Bay of Bengal to the south-east of Sri Lanka
Advisory for low pressure area in the Southwest Bay of Bengal to the south-east of Sri Lanka.
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 03.00 pm on 18 February 2026
Multiday boats fishermen and naval community are warned that the low-pressure area still persists over the Southwest Bay of Bengal to the south-east of Sri Lanka. Under the influence of this system, heavy showers or thundershowers, Strong winds about (50-60) kmph, and rough or very rough seas can be expected in these sea areas.
The Meteorological Department is constantly monitoring the behavior of the system.
The naval and fishing communities are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regard.
News
Canada concerned about delay in holding PC polls
Canada, said to be the home to the largest Tamil Diaspora community, has expressed concern over the delay in holding Provincial Council (PC) elections. Canadian High Commissioner Isabelle Martin, on Monday (16), took up the issue with Public Administration, Provincial Councils and Local Government Minister Professor Chandana Abayaratne.
Sources quoted Prof. Abayaratne as having told the Canadian HC that the delay was not deliberate on the part of the government. The Minister blamed, what the sources called, certain legal, technical and delimitation issues for the delay.
India compelled Sri Lanka to enact the 13th Amendment to the country’s Constitution to enable the setting up of the Provincial Council system, in line with the Indo-Lanka Peace Accord, which Sri Lanka signed under duress in July 1987.
Prof. Abayaratne has assured the Canadian HC that President Anura Kumara Dissanayake, too, recognised the importance of strengthening the Provincial Council system as a solution to ethnic issues and that urgent steps would be taken in that regard.
During the discussion, matters relating to strengthening political, economic and social relations between the two countries were discussed.
In May 2020, Canada declared that Sri Lanka had perpetrated genocide during the war against the LTTE. Canada also sanctioned former Presidents Mahinda Rajapaksa and Gotabaya Rajapaksa in January 2023 over alleged war crimes.
The Canadian HC also explained her country’s ‘Indo-Pacific’ strategy and how Sri Lanka could benefit from it.
In particular, Canada’s “Pathways to Peace” project will support reconciliation between nations, and to improve communication by encouraging the learning of mutual languages as a second language, and it was also agreed to provide more opportunities for Sri Lankan students to pursue higher studies in Canada.
The Canadian delegation also expressed its willingness to provide the necessary technical assistance to solve the drinking water problems in Puttalam, Mannar and the North-Eastern provinces under technical cooperation, and to implement the relevant projects after a preliminary study.
by Shamindra Ferdinando
News
Sajith briefs visiting UK Deputy PM on constitutional issues
SJB and Opposition Leader Sajith Premadasa has briefed Deputy PM of the UK, David Lammy, on the dangers posed by the proposed Protection of the State from Terrorism Act (PSTA) and the Online Safety Act.
They met at the Office of the Leader of the Opposition, in Colombo, on Tuesday (17). Discussions focused on democratic governance, trade expansion, and bilateral humanitarian cooperation.
The British delegation included High Commissioner for Sri Lanka Andrew Patrick.
Head of the Deputy Prime Minister’s International Unit David Meyer, Special Advisor Ms. Fiona Meagher, and First Secretary (Political) Tom Soper,
According to a statement issued by the Opposition Leader’s Office, Premadasa has cautioned against what he called draconian applications of the law, specifically warning against broad definitions of terrorism that could criminalize political dissent and trade union activities. Premadasa reiterated that the judiciary, not the executive, must drive legal interpretations. Regarding online safety, while acknowledging the need to protect children, he stressed that regulations must align with UK standards and international norms without infringing on civil liberties.
The Opposition Leader welcomed the UK’s leadership as the President of the Group of States against Corruption (GRECO) and its global Anti-Kleptocracy Campaign. The SJBer highlighted the critical need for transparent institutions, noting that strengthening accountability mechanisms is central to rebuilding public trust and ensuring sustainable economic recovery in Sri Lanka.
Premadasa conveyed sincere appreciation for the UK’s “Sovereign Solidarity” following the devastation caused by Cyclone Ditwah in late 2025. He thanked the UK government for increasing its humanitarian aid package to £1 million (approx. $1.32 million) in December 2025. This funding, channelled through the Red Cross, UNOPS, and local partners, has provided: Emergency shelter and repairs for damaged homes; Clean water and sanitation facilities to prevent disease; and essential medicines and food supplies for the 1.8 million people affected.
Premadasa also proposed enhanced cooperation in protecting Sri Lanka’s wild elephant population and addressing the growing human–elephant conflict. He emphasised the need for sustainable conservation strategies, scientific land-use planning, community protection measures, and international technical support to safeguard biodiversity while ensuring the safety and livelihoods of rural communities affected by human–elephant interactions.
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