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President addresses VAT increase and economic stability at industry excellence awards ceremony

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President talking to founder Chairman of Pussalla Meat Producers (Pvt) Ltd, Philip J. Wewita

President Ranil Wickremesinghe, on Wednesday night, speaking at the National Industry Awards ceremony, acknowledged the challenging decision to increase the Value Added Tax (VAT) to 18 percent, emphasising the imperative need to maintain economic stability.

National Industry Excellence Awards 2023 was held at the Nelum Pokuna Theatre in Colombo. President Wickremesinghe stressed the importance of leadership built on honesty and transparency with the people.

President Ranil Wickremesinghe went on to announce his intention to propose loan concessions in the upcoming budget, specifically aimed at supporting small and medium-scale industrialists, with the aim of bolstering Sri Lanka’s export-oriented manufacturing sector.

The awards ceremony was held to recognize and honour 300 successful entrepreneurs across various categories, including platinum, gold, silver, and bronze awards, from a pool of over 4,000 industrial entrepreneurs who had competed in 21 major industrial sectors and 61 sub-industrial sectors.

President Wickremesinghe also addressed the challenges faced by industries in 2022, citing issues such as power shortages and difficulties in obtaining bank loans that led to the closure of many businesses. Despite these challenges, he noted the resilience of numerous individuals who managed to revive their industries and achieve success, particularly in the small and medium-scale sector.

The President stressed the importance of addressing ongoing concerns related to bank loans and market access, with a focus on supporting small and medium-scale industries in the upcoming budget.

President Wickremesinghe revealed ongoing discussions with international financial institutions, including the International Monetary Fund (IMF), and creditors to devise comprehensive strategies for revitalizing the nation’s economy.

The President emphasized the significance of consistently increasing income to meet loan repayment commitments and to gain the trust of private and multilateral creditors. He pointed out that a substantial portion of the next year’s budget would be allocated to debt repayment and interest payments, underscoring the paramount importance of safeguarding the country’s currency and fulfilling loan obligations.

President Wickremesinghe also explained the necessity of the decision to raise the VAT to 18 percent, aligning Sri Lanka’s practices with countries like India and Pakistan. He acknowledged that such decisions, while difficult, are essential for the country’s well-being, even if they attract public criticism.

In closing, the President reaffirmed his commitment to rebuilding the nation without reverting to dependency on external support, emphasizing that the path may be challenging, but he is confident that positive results will be achieved in the next two to three years through negotiations with international financial institutions, including the World Bank.



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22A: SC urged to suspend hearing, appoint full bench

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Attorney-at-Law Sugandhika Fernando, on behalf of the Vinivida Foundation, petitioned the Supreme Court yesterday (02), seeking a full bench, excluding Chief Justice Preethi Padman Surasena, to hear the petitions challenging the 22nd Amendment Bill. She also requested that the hearing be suspended immediately until the matter was fully heard and determined.

Among the respondents are Chief Justice Surasena, the first respondent, and Attorney General Parinda Ranasinghe. Justices Yasantha Kodagoda, Shiran Gooneratne, Achala Wengappuli and Priyantha Fernando have also been named as respondents.

The petitioner has sought to have quashed the decision of the first respondent to appoint a five-member bench, which she alleged was made in violation of the norms of public law. She also sought a bench comprising all Supreme Court judges, excluding those cited as respondents, to hear the special determination applications on the 22nd Amendment.

The petitioner further contended that Chief Justice Surasena, who is due to retire on December 1, 2026, would be the main beneficiary of the 22nd Amendment.

The hearing of the petitions continued for a second day yesterday (02) before a five-member Supreme Court bench comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli, Arjuna Obeyesekere, Sampath Abeykoon and Gihan Kulatunga.

The hearing, which commenced on Tuesday morning, continued for nearly 12 hours, until 10:30 p.m.

Solicitor General Viraj Dayaratne, appearing for the Attorney General, submitted yesterday that the Government had presented the 22nd Amendment Bill to the Constitution and the Judicature (Amendment) Bill with the objective of expanding and streamlining the country’s judicial system.

After the Solicitor General’s submissions concluded, counsel representing the petitioners requested an opportunity to respond to the Solicitor General and the intervening petitioners. However, the Chief Justice declined to allow the petitioners’ counsel to make further oral submissions, concluded the determination hearing and directed them to file written submissions instead.

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Govt. seeks NATO assistance

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AVM Thuyakontha meets Admiral Giuseppe Cavo Dragone

Sri Lanka has formally requested assistance from the North Atlantic Treaty Organisation (NATO).

According to a press release issued by the Defence Ministry, Defence Secretary Air Vice Marshal (retd) Sampath Thuyakontha has discussed defence cooperation with NATO, with discussions focusing on military modernisation, advanced technology, cyber capabilities and disaster response.

This was during talks between AVM Thuyakontha and NATO Military Committee Chairman Admiral Giuseppe Cavo Dragone on the sidelines of the Chiefs of Defence Conference in Victoria, Canada.

During the meeting, Secretary Thuyacontha outlined Sri Lanka’s defence requirements and areas of interest, including the modernisation of military hardware, acquisition of advanced technologies, and strengthening cyber capabilities and surveillance platforms, the Ministry of Defence said in a statement.

The two sides also discussed opportunities for greater technical cooperation, including the exchange of military personnel, expanded education and training programmes, and increased sharing of expertise and information.

Humanitarian Assistance and Disaster Relief (HADR) was also identified as an area for potential cooperation. The discussions included the exchange of expertise and the effective use of unmanned aerial vehicles (UAVs) in disaster response and related operations.

Defence Secretary Thuyacontha invited NATO to further strengthen its engagement with Sri Lanka, emphasising sustained dialogue, information sharing and practical cooperation in areas of mutual interest.

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Recent ‘Ice’ detection at the Colombo Port made on US intelligence – Embassy

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Colombo Port drug bust

The US Embassy in Colombo yesterday (02) said the recent detection of 463 kg of Crystal Methamphetamine at the Colombo Port had been made possible by intelligence provided by the US. It noted that the detected narcotics were to be moved to international markets, via Colombo.

The text of the US Embassy statement: “The U.S. Drug Enforcement Administration’s (DEA) New Delhi Country Office and Sri Lanka’s Police Narcotics Bureau (PNB) conducted a successful joint operation disrupting a Pakistan-based narcotrafficking network attempting to smuggle crystal methamphetamine through Sri Lanka to international markets.

Acting on intelligence developed by DEA’s Foreign Counterparts Unit Pakistan Anti-Narcotics Force Special Investigations Cell between August 14–29 on suspicious maritime containers moving from Pakistan to Colombo, PNB seized approximately 463 kg of crystal methamphetamine—valued at $21 million—concealed in bath towels, and arrested several suspects, including Pakistani nationals. This operation underscores the strength of the U.S.-Sri Lanka partnership in dismantling transnational criminal organizations that fund terrorism and threaten communities in both our countries.

This cooperation builds on longstanding training and technical assistance provided through the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL) to the Sri Lanka Police and Customs. The United States remains committed to working with Sri Lanka and regional partners to aggressively pursue transnational criminal organizations, deny them the revenue from illicit drug trafficking, and protect our citizens from the dangers of narcotrafficking.”

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