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).
News
India should be kept out of PC polls, matters related to 13 A – Mano
Leader of the Tamil Progressive Alliance (TPA), Mano Ganeshan, MP, said that India shouldn’t intervene here regarding the long-delayed Provincial Council polls.
The former Yahapalana Minister of National Co-existence, Dialogue and Official Languages (2015-2018), Ganeshan, who represents the main Opposition Samagi Jana Balawegaya (SJB) in the current Parliament, stressed that New Delhi’s intervention wouldn’t do any good for them or for us.
Lawmaker Ganeshan said so when The Island asked him whether the TPA would ask India to pressure the NPP government to conduct PC polls, last held in 2014, during Mahinda Rajapaksa’s second term. Ganeshan said: “India shouldn’t get involved in the issue at hand . Such a strategy is also in their interest, particularly in the context of the evolving global order. India should not be perceived as a pro-Tamil state, but rather as a state that supports Sri Lanka as a whole.”
Ganeshan said that the Indian state bears a moral responsibility in this matter. “That responsibility arises from the fact that India’s diplomacy and military intervention played a decisive role in neutralising the Tamil armed struggle in Sri Lanka. Although India’s mission remained unfinished, it nevertheless lost nearly two thousand soldiers in the process. There was also a prelude to this involvement, when Tamil militant groups received training in India. Consequently, the Indian connection became a sensitive issue for both the Sinhalese and Tamils of Sri Lanka.”
But, whatever had happened, the national issue should be settled among us. ” The solution must be found and settled within Sri Lanka itself. We do not need Western interventions in this regard.”
” In recent years, whenever we in the Tamil Progressive Alliance (TPA) have met Indian dignitaries—including the Prime Minister, the External Affairs Minister, and, most recently, the Vice President—the subjects of the 13th Amendment and Provincial Councils have never featured on our agenda.”
The 13th Amendment is part of Sri Lanka’s Constitution. Therefore, it is for Sri Lankans themselves to decide whether to retain, improve, fully implement, reform, or even repeal it, Ganeshan said.
MP Ganeshan found fault with those who represented the Northern and Eastern provinces for failing to utilise the goodwill and influence India enjoyed with successive Governments of Sri Lanka to pursue an amicable political settlement. The parliamentarian said that they should acted after the end of the war in May, 2009. Unfortunately, they failed to effectively use the Provincial Council framework to consolidate their political position and advance further, thereby earning the confidence of both India and successive Sinhala-majority governments, MP Ganeshan said.
Responding to another query, MP Ganeshan said: “
We should keep the ethnic issue separate from bilateral relations with India, while deepening economic connectivity and cooperation on the basis of mutual benefit and a win-win partnership.”
By Shamindra Ferdinando
News
US boost for SLAF
Sri Lanka has taken delivery of 10 TH-57 ‘Sea Ranger’ multi-role helicopters provided by the United States of America to the Sri Lanka Air Force. Air Forces headquarters said that the helicopters arrived here by sea.
The SLAF has said: “The arrival of these aircraft marks a significant milestone in the longstanding defence cooperation between Sri Lanka and the United States and represents a valuable contribution towards enhancing the operational and training capabilities of the Sri Lanka Air Force.
“The helicopters are currently undergoing configurations and technical preparations at SLAF Base Ratmalana. Following the completion of requisite inspections, acceptance procedures and test flights, the aircraft will be inducted into service and deployed for operational duties.
“The TH-57 fleet is expected to significantly strengthen the Air Force’s aviation training capacity while enhancing the ability to support a broad spectrum of national requirements. The aircraft will primarily be employed for pilot training, humanitarian assistance and disaster response (HADR) operations, search and rescue (SAR) missions and other public service commitments undertaken by the Sri Lanka Air Force.”
News
TPA demands House committee to probe Tilvin’s claim PC polls cannot be held due to fund constraints
Referring to the recent declaration made by JVP General Secretary Tilvin Silva that the Provincial Council elections couldn’t be held this year as funds allocated for that purpose were utilised to provide Ditwah cyclone relief, Tamil Progressive Front (TPA) leader Mano Ganeshan, MP, has asked Dr. Harsha de Silva, MP Chairman, Committee on Public Finance, to inquire into the issue at hand and take action deemed appropriate.
The text of MP Ganeshan’s letter: “I write with reference to a statement reportedly made by Tilvin Silva, General Secretary of the Janatha Vimukthi Peramuna (JVP), the principal constituent party of the National People’s Power (NPP) Government.
According to media reports, Silva stated, in substance, that funds allocated and set aside for the conduct of Provincial Council Elections had been utilised by the Government for disaster-rebuilding and related purposes.
While he is reported to have made further remarks, I confine my attention to the above statement, which raises a serious matter concerning public finance and parliamentary oversight.
To the best of my knowledge, Parliament has not approved any transfer or reallocation of funds, earmarked for Provincial Council Elections, to any other expenditure head or purpose. If the statement, attributed to Mr. de Silva, is accurate, it may indicate that such funds have been utilised without the requisite parliamentary authorisation.
In view of the above, I respectfully request that the Committee on Public Finance inquire into this matter and ascertain whether any transfer, reallocation, or expenditure of funds allocated for Provincial Council Elections has occurred in a manner inconsistent with parliamentary approval and financial regulations.
I would be grateful if the Committee could examine the facts and take any action deemed appropriate within its mandate.”
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