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.
Latest News
USS Canberra makes port call in Colombo
The United States Navy’s USS Canberra (LCS 30) arrived at the port of Colombo for replenishment purposes on 12 Jun 26.
The visiting ship was welcomed by the Sri Lanka Navy
in compliance of naval traditions.
USS Canberra, a Littoral Combat Ship, is commanded by Commander J McLaughlin.
News
Complete the Proposed Education Reform Policy Framework Within One Month – President
President Anura Kumara Dissanayake has instructed officials to complete work on the proposed Education Reform Policy Framework within one month.
The President issued these instructions during a discussion held on Wednesday (10 June) at the Presidential Secretariat on the education policy concept paper presented by the National Education Commission.
At the meeting, the Chairman of the National Education Commission stated that the current education reforms are being undertaken across several pillars: early childhood education, general education (primary, secondary and tertiary), higher education, vocational education, technological education, digital education and non-formal education.
Attention was also given to Sri Lanka’s education system to date, the various education reforms implemented over the years, and the social changes brought about by those reforms. The President instructed officials to review previous education reforms and to take into account the key lessons emerging from them when formulating the new education policy framework.
Members of the Education Commission noted that, since the establishment of the National Education Commission in 1991, education policies have been formulated from time to time. They pointed out that a significant portion of the 1997 policy had been applied to primary education.
It was further observed that although a policy was formulated in 2016 for general education, it was not implemented accordingly. Likewise, while an education policy was prepared in 2023, it was not adopted as the national education policy. Attention was also drawn to the fact that previous education reform efforts had often been based on programmes developed according to the functions of education-related institutions, rather than on a clearly established policy framework guiding educational change.
Describing the present moment as a significant opportunity, the President emphasised that education reforms should be implemented in a manner that does not disrupt the continuity of the existing education process. Rather than creating a separate policy framework and attempting to operate independently through it, reforms should be integrated carefully into the functioning education system.
The President stated that this represents a considerable challenge for the National Education Commission. He also noted that it would be inaccurate to conclude that either the previous education system or the current one is entirely successful or entirely unsuccessful.
He stressed the importance of carefully identifying both the strengths and weaknesses of the existing system. He further observed that it is not possible to determine in the short term whether an education reform is successful or unsuccessful, as its impact must be assessed over the long term through the changes it brings about in society. For this reason, he emphasised that education reforms require greater caution and consideration than many other types of reforms.
Discussions also focused on the need to conduct an in-depth review of anticipated future social challenges and to incorporate into the new policy framework the elements necessary for developing citizens suited to a changing society.
Special attention was given to the need for a policy framework to regulate all sectors of education that are currently not subject to proper regulation, as well as to the adverse consequences arising from the lack of regulation of private education.
The importance of conducting research into university education reform and the regulation of private universities was also discussed.
Among those present were Prime Minister Dr Harini Amarasuriya, Deputy Minister of Education and Higher Education Dr Madhura Seneviratne, Deputy Minister of Vocational Education Nalin Hewage, Secretary to the President Dr Nandika Sanath Kumanayake, Senior Additional Secretary to the President Kapila Janaka Bandara, Secretary to the Ministry of Education, Higher Education and Vocational Education Nalaka Kaluwewa, Chairman of the National Education Commission Professor A. Sarath Ananda, and other members of the National Education Commission.
(PMD)
Business
Committee appointed for restructuring SriLankan Airlines
The Cabinet of Ministers has approved the appointment of a Committee, chaired by Senior Presidential Advisor on Digital Economy Dr. Hans Wijayasuriya, to conduct a strategic review and restructuring of SriLankan Airlines.
The other members of the committee are as follows:
• Senior Presidential Economic Advisor Duminda Hulangamuwa
• Financial and corporate strategy expert Deshal De Mel
• Transaction and investment banking, mergers and acquisitions expert Dumith Fernando
• The Secretary to the Ministry of Finance or his Representative
• The Secretary to the Ministry of Transport, Highways and Urban Development / a representative of the Civil Aviation Authority
• The Chairman of SriLankan Airlines
• Legal experts with specialised knowledge in corporate, aviation and public law
• Aviation industry experts to be appointed
The Government has recognised the urgent priority of undertaking a comprehensive strategic review of SriLankan Airlines, taking into account the broader macroeconomic context.
The main objective of this exercise is to establish a financially sustainable and commercially efficient national carrier, while reducing the long-term fiscal burden on the Government.
Accordingly, it has been deemed appropriate to establish a dedicated committee to carry out the strategic review and restructuring process in collaboration with the International Finance Corporation (IFC), which is serving as the Transaction Advisor.
The committee will be responsible for:
• Conducting an independent review and assessment of the airline’s strategic direction and future course of action
• Recommending restructuring requirements and possible restructuring models
• Evaluating specific strategic options and identifying the most suitable course of action aligned with the Government’s overall objectives
• Providing oversight, guidance and support for the implementation of the selected strategy and execution framework determined by the Government
The committee will function for the duration of the strategic review and restructuring process, or until it is formally dissolved by the Government of Sri Lanka.
(PMD)
-
News6 days agoWomen’s T20 World Cup 2026 warm-up: Chamari Athapaththu’s 94 helps Sri Lanka beat Pakistan
-
News6 days agoLankan-Canadian inducted to Toronto Sports Hall of Fame
-
News7 days agoAsst. Manager, security officer arrested over Rs 30 mn snatch at Horana PB branch
-
Editorial5 days agoProbe Sallay’s complaint
-
News3 days agoLocal firms move millions of dollars overseas for phantom imports: Govt.
-
Editorial6 days agoPrez in the dock
-
Features6 days agoEntering MIT for my Ph.D program, coping with harsh Boston winter and breasting the tape
-
News7 days agoNo blanket ban on musical performances; only those promoting LTTE
