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Harsha predicts 18 % VAT will have devastating effect on farming

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The 18% VAT imposed on agricultural equipment and inputs as well as diesel would have a devastating effect on farming, SJB MP Dr. Harsha de Silva told journalists on Monday.

From 01 January, agricultural machinery and other equipment, including chemical fertiliser previously listed as exempted, would be liable to VAT. Finance Ministry officials had told the Committee on Public Finance (COPF) that dairy products such as liquid milk and eggs would also be subject to VAT, he said.

The MP said that several large scale rice mill owners were encouraging farmers to plant paddy varieties that could be used to produce keeri samba. “The yields of these varieties are 25 percent lower than those of the varieties used to produce samba and nadu, he said.

“We can see the results of this by March 2024,” he said.

MP de Silva said that a future SJB government would not allow a few oligarchs to manipulate key markets. During the Yahapalana government, he had introduced a programme to empower small and medium scale rice mill owners to boost production by giving them interest-free loans and organising them into cooperatives that could compete with large scale rice mills, Dr de Silva said.

The government provided those cooperatives with funds so that they could purchase paddy from the farmers, mill it and resell it to the cooperatives, which sold it to consumers.

“This was called the Shakthi Rice initiative. More than 200 millers and 10,000 farmers were with us. We were able to capture a market share of four percent in the harvest season. But this scheme didn’t go beyond that because Gotabaya Rajapaksa, who came into power the next year, scrapped it. We can only achieve some sort of fairness only if we do something about oligarchs,” he said.

MP de Silva said that in 2022, a family of four could live comfortably with about Rs 90,000, according to the data of the Department of Census and Statistics. Now, it required more than Rs 170,000 to maintain the same standard of living, he said.

“Yes, there are no queues, but the people are much poorer,” he said.

The SJB MP said that Sri Lanka was the only bankrupt Asian country, and it was still in a precarious place.

“India has not gone to the IMF since 1991. We too don’t need to go to the IMF, if we work together according to a well thought-out plan. We need to stop corruption and a plan that links us with international markets,” he said.



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Heat index likely to increase up to ‘Caution level’ in the Sabaragamuwa, Northern, North-central, North-western, Eastern provinces and in Hambantota and Monaragala districts during the daytime

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 07 May 2026, valid for 08 May 2026.

The Heat index, the temperature felt on the human body is likely to increase up to ‘Caution level’ at some places in the Sabaragamuwa, Northern, North-central, North-western, Eastern provinces and in Hambantota and Monaragala districts during the daytime.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note: In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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Renewable energy producers left high and dry as CEB prioritises spending on oil-fired power plants

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Sri Lanka could face a serious electricity supply crisis if outstanding payments owed to renewable energy producers are not settled urgently, industry representatives have warned.

According to renewable energy sector sources, the National System Operator (Private) Company has not paid more than Rs. 10 billion due to renewable power producers for electricity supplied to the national grid between December 2025 and April 2026.

The Federation of Renewable Energy Developers said the prolonged delay in payments had placed severe financial strain on producers and threatened the continued supply of renewable power to the national system.

Speaking to The Island, Federation Vice President Prabath Wickramasinghe said the payment crisis had emerged as authorities prioritised expenditure on diesel and furnace oil generation to offset a daily electricity shortfall of nearly 150 megawatts caused by inefficiencies in coal power generation.

He said the escalating conflict in the Middle East had sharply increased global fuel prices, resulting in a steep rise in thermal power generation costs, estimated at close to or above Rs. 10 per unit.

“In this situation, greater focus on renewable energy has become essential,” Wickramasinghe said.

He noted that the issue affected not only large-scale renewable projects but also ground-mounted solar power plants, mini-hydropower projects, wind farms and biomass power stations operating across the country. According to the Federation, 389 renewable energy plants with a combined installed capacity of 1,073.9 megawatts were currently affected.

Wickramasinghe warned that continued non-payment could lead to plant owners defaulting on bank loans and other financial obligations, while also undermining investor confidence and destabilizing the renewable energy sector.

He further cautioned that the crisis could ultimately contribute to future electricity shortages if renewable energy suppliers reduce or suspend generation.

When contacted by The Island, Chairman of the National System Operator (Private) Company Dr. B.L. Pradeep Priyadarshana Perera acknowledged delays in payments and said discussions were underway with the Ministry of Finance to resolve the issue promptly.

By Sirimantha Ratnasekera

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PM reveals move to introduce higher education sector reform

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PM Amarasuriya

Prime Minister Dr. Harini Amarasuriya told Parliament on Wednesday that the government was planning to reform the higher education sector in line with the ongoing transformation of the primary and secondary education systems.

Responding to questions raised by Digamadulla District NPP MP Manjula Sugath Rathnayaka, the Prime Minister said a special expert committee appointed to review the higher education sector had been functioning over the past six months and was expected to submit recommendations aimed at addressing long-standing structural and administrative issues.

“A special expert committee appointed for this purpose has been in operation over the past six months, and based on the report of this panel, existing issues in the higher education sector will be identified and the necessary reforms will be implemented,” she said.

Providing details on university admissions, Dr. Amarasuriya said 281,810 students had sat the 2025 GCE A/L Examination, and out of them 176,538 were qualified for university admission. However, only 42,937 students could gain admission to state universities.

The Prime Minister said the highest number of qualified students was from the Arts stream (58,269) candidates, followed by Commerce stream (39,608), Biological Sciences (32,935), and Physical Sciences (23,012). In addition, 12,472 students were qualified in the Engineering Technology

stream, 6,043 in the Bio-Systems Technology, and 4,199 in the General Stream.

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