News
Inland Revenue releases list of goods and services exempt from enhanced VAT
The Inland Revenue Department yesterday (21) issued the list of goods and services that would be exempted from the enhanced Value Added Tax (VAT) regime that comes into effect from 01 January 2024.
The list of items included Wheat and wheat flour; infant milk powder; Pharmaceutical Products and Drugs (other than cosmetics) whose end use are confined to therapeutic or prophylactic effect and purchased on a prescription of a physician and raw materials for the production or manufacture of such products or drugs; Ayurvedic Preparations that belong to the Ayurveda Pharmacopoeia or Ayurvedic Preparations (other than cosmetic preparations) or Unani, Siddha or Homeopathic Preparations (other than cosmetic preparations); Crude Petroleum Oil, Kerosene, Aviation Fuel, Oil for Ships or Fuel Oil; Artificial Limbs, Crutches, Wheel Chairs, Hearing Aids, Accessories for such aids or Appliances, White Canes for the blind, Braille Typewriters and Parts, Braille Writing Papers, Braille Writing Boards, etc.; Bio Fertilizer, Artemia Eggs and Peat Moss; Agricultural Seeds, Agricultural Plants, Shrimp Feed inclusive of Prawn Feed and Animal Feed but excluding Poultry Feed; Yarn used for textile industry; and Dyes used for the handloom industry.
Among the services exempted from VAT are: Educational Services provided by any person or partnership; Public passengers transport services (other than air transport, water transport or transport of tourists, excursion tours and taxi services); Electricity including distribution; Services in relation to burials and cremations; Services at a restaurant situated beyond the immigration counter at the
Bandaranaike International Air Port; Goods and services to the mission of any state or any organisation to which the provisions of the Diplomatic Privileges Act; Goods or services funded directly by foreign organisations for the relief of sudden distress caused by natural or human disasters or to any activity having regard to the interest of the national economy, as approved by the Minister; a number of Financial Services:
the operation of any current, deposit or savings account; the exchange of currency; the provision of any loan, advance or credit, etc.; the life insurance, Agrahara insurance and crop and livestock insurance; the transfer of non-performing loans of a licensed commercial bank by way of transfer of such loans to any other person in terms of a restructuring scheme or other scheme of such bank as approved by the Central Bank of Sri Lanka with the concurrence of the Minister; All healthcare services provided by medical institutions or professionally qualified persons providing such care other than hospital room charges; Locally Manufactured Handloom Textiles;
Rice, Rice Flour and Bread so far as such products are manufactured locally; Unprocessed Agricultural, Horticultural or fishing products produced in Sri Lanka; Locally manufactured Surgical Gauze used for surgery; Fabric which are subject to a cess at a specific rate; Services by the Department of Commerce, the Board of Investment of Sri Lanka or the Sri Lanka Ports Authority; Services by a person in Sri Lanka to any other person outside Sri Lanka to be consumed or utilised by such other person outside Sri Lanka for which the payment is made in Sri Lanka rupees; Geriatric Services and Child Care Services; Goods or services to any specified project identified by the Minister, taking into consideration the economic benefit to the country, on which the tax is borne by the Government; or (b) Goods and services to any infrastructure development project funded through foreign loans or donations directly to the Government Ministries, approved by the Minster on the recommendation of secretary of the respective Government Ministry; Goods or services by the Central Bank of Sri Lanka.
Meanwhile, Goods to be used as exhibition material or as material in any technical demonstration and which are re-exported after the completion of such project, exhibition or demonstration; Aircraft Engines or Aircraft Spare Parts identified under specified Harmonised Commodity Description and Coding System Numbers for Custom purposes; Chemical Naphtha by the Ceylon Petroleum Corporation to be supplied to the Ceylon Electricity Board for the generation of electricity; and The import and supply of goods at Duty Free Shops for payment in foreign currency.
News
Mercury fears over coal imports: CEJ urges urgent standards, health probe
Environmentalists have raised fresh concerns over possible mercury contamination linked to coal used at the Norochcholai coal power plant, warning that Sri Lanka still lacks binding standards on mercury content in imported coal despite mounting health risks in nearby communities.
Chairperson of the Centre for Environmental Justice (CEJ), Environmental Scientist Hemantha Withanage, said recent coal consignments suspected to be of inferior quality could contain elevated mercury levels, posing a threat to both ecosystems and human health.
“International studies show that mercury content in coal can vary significantly. For example, research on South African coal indicates a range between 0.01 and 0.49 ppm. However, Sri Lanka has still not established a maximum permissible mercury level for imported coal,” Withanage told The Island.
He pointed out that the environmental protection licence issued for the Norochcholai Coal Power Plant allows mercury emissions of up to 0.01 mg/Nm³, but stressed that regulating emissions alone is insufficient without controlling mercury content at the source.
“With no standard for mercury in imported coal, there is a serious regulatory gap. This raises legitimate concerns that recent shipments may contain higher mercury concentrations,” he said.
Withanage cited a 2018 CEJ study conducted in the Kalpitiya peninsula, near Puttalam, which found alarming levels of mercury exposure among women of childbearing age. According to the study, 28 out of 36 women—approximately 77%—had mercury levels in hair samples exceeding the internationally accepted safety threshold of 1 ppm.
“The most disturbing finding was a recorded level of 15.584 ppm in one individual. These women were regular consumers of fish from the Puttalam lagoon, suggesting a bioaccumulation pathway,” he explained.
The CEJ believes that mercury released during coal combustion at Norochcholai may enter the marine environment, eventually accumulating in fish consumed by local communities.
“Mercury is a potent neurotoxin. When released into the environment, it can transform into methylmercury and enter the food chain, particularly affecting coastal and fishing communities,” Withanage warned.
He further alleged that despite formally notifying the Central Environmental Authority and the North Western Provincial Environmental Authority at the time, there had been insufficient follow-up action.
He added:”We raised these findings years ago with the relevant authorities, but there has been little to no meaningful response. This is unacceptable given the potential public health implications.”
Environmentalists are now calling for immediate steps, including the establishment of national standards for mercury content in imported coal, independent testing of all coal consignments, and a comprehensive health assessment of communities living in proximity to the power plant.
They also stress the need for continuous monitoring of mercury levels in air emissions, marine ecosystems, and food sources such as fish.
“With growing evidence of contamination, authorities must act decisively. Public health cannot be compromised,” Withanage added.
By Ifham Nizam
Latest News
Heat Index at Caution Level in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 02 April 2026, valid for 03 April 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.
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 the 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.
News
Govt. toys with the idea of moving public sector work online
Government authorities are exploring the possibility of shifting public sector work online on April 16 and 17, to maintain essential services while managing available fuel and energy amid disruptions linked to West Asia conflagration.
The proposal was discussed at the third meeting of the Cabinet-appointed committee on ensuring continuity of public services, chaired by Prime Minister Dr Harini Amarasuriya via a virtual platform, according to the President’s Media Division.
Officials highlighted that the Ministry of Health and Mass Media had reduced diesel consumption by 42% by March 31, reflecting wider government efforts to reduce fuel use across institutions. Awareness programmes on energy management at schools are scheduled for April 7 and 9, while universities are already operating online where feasible.
The Ministry of Public Administration confirmed that examinations, including the Grama Niladhari entrance test, have continued as planned. Key ministries, including Transport, Digital Economy and Justice, are maintaining operations by deploying essential staff and utilising online systems.
The committee also discussed launching a public awareness campaign to curb water wastage and promote alternative water sources, to be jointly conducted by the National Water Supply
and Drainage Board and the ‘Clean Sri Lanka’ initiative.
Guidelines for conducting official duties online have been prepared by the Ministry of Digital Economy, with a circular expected by April 20 following consultations with the Ministry of Public Administration. Plans were also reviewed to monitor daily energy consumption, fuel reserves, and public service attendance through a digital dashboard.The committee is scheduled to reconvene on April 8.
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