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President announces how JJB govt lowered IMF benchmarks for benefit of people

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President Anura Kumara Dissanayake

By Sanath Nanayakkare

President Anura Kumara Dissanayake speaking in parliament yesterday listed the achievements his government made in bringing tax relief to certain sections of the society during the 3rd review of the IMF, under its Extended Fund Faculty programme.

He also said that the JJB government would leave no room for an economic crisis to take place under its watch.

“Some sections are making attempts to fuel fear among the people that an economic crisis would emerge in 2028 when the country starts repaying its loans, plunging the country back into bankruptcy. Keep in mind that our government will be in office in 2028. We will not allow an economic crisis to happen in the future like in 2022, 2023. Our goal is to build reserves up to USD 15.1 billion by 2028. We are working towards it. We have a strong belief that we will have collected USD billion 15.1 billion in foreign reserves by that time.

“Today, USD 12.55 billion is subjected to debt restructuring plus the shirked payment of USD 1.7 billion. We have restructured USD 12.55 billion out of which USD 11.55 billion were loans taken between 2015-2019.I think If instructions had been given those days, the crisis wouldn’t have happened. Keep in mind that the instructions came in too late.”

“Soon after the general election, IMF started the 3rd review on Nov. 16. At the 2nd review , there were a number of benchmarks with the previous government. One of the main proposals as per the 2nd review was the rental tax on property which was to be enforced in 2025. A service export tax of 30% had been agreed. It had been agreed to remove the special trade levy in January 2025 and replace it with a value added tax. The same tax code was to be continued with personal income tax. It had been proposed to remove the SVAT by April 2025. SVAT makes it easier for businesspeople to claim refunds on the VAT they pay and support their cashflow. But it had been proposed to remove it.”

“When the 3rd review started, what did we propose? You know that there was a lot of disappointment over PAYE tax. associations of doctors, bank managers, university lecturers had expressed their dismay at PAYE tax.”

“We negotiated with the International Monetary Fund to raise the income tax threshold to 150,000 rupees a month from the current 100,000 rupees. The wages of a person earning 150,000 rupees will be 100 percent free from tax. The 6 percent tax on the first slab of 500,000 rupees will be raised to one million rupees. The tax on someone earning 200,000 rupees will be 71 percent free of tax. The salary of a person earning 250,000 will be 61 percent free, 300,000 rupees 47 percent free.Rs 350,000 a month will be free by 25 percent. We have been able to revise PAYE tax to give bigger benefits to lower income earnings and lower benefits to higher income earners.”

“We have agreed to raise the withholding tax on bank deposits to be raised from 5 to 10 percent. However, there will be a process where exemptions can be claimed by senior citizens who think that they shouldn’t be liable to this tax even if they earn a monthly interest of Rs. 150,000. A special division will be set up at the Inland Revenue Department to address such concerns.”

“The value added tax the previous government had imposed on local milk and yoghurt will also be removed, Corporate tax on services export which was to be raised to 30 percent will be reduced to 15 percent, as a result of our negotiations with the IMF,” the President said.



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GDP data reaffirms persistent asymmetry of Sri Lanka’s provincial economy

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Western Province maintains its dominant position, accounting for 42.4% of nominal GDP

The 2024 provincial GDP data reaffirms the profound and enduring structural asymmetry in Sri Lanka’s economic geography. The Western Province continues to function as the nation’s overwhelming economic core, while the second and third runners-up, the North Western and Central Provinces respectively, operate on a markedly different scale and sectoral foundation.

The Western Province maintains its dominant position, accounting for 42.4% of the country’s nominal GDP. This preeminence is rooted in its commanding role across the high-value Services and Industry sectors, where it contributes 44.5% and 47.6% of national output, respectively. Its economy is distinctively modern, with a scant 2.3% reliance on agriculture and over 98% of its output derived from industry and services. This concentration of finance, trade, administration, and manufacturing creates an unmatched gravitational pull for investment and talent.

In stark contrast, the combined economic share of the North Western (11.5%) and Central (10.7%) Provinces is just over half that of the Western Province alone. Their paths to relevance are fundamentally different. The North Western Province has solidified its role as the nation’s agricultural heartland, contributing a full 20.0% of national agricultural activity. It also holds a significant, though secondary, position in industry at 12.0%. Its internal economic composition is more balanced across sectors than the west, with a notable reliance on industry (29.1% of its own GDP) alongside agriculture.

The Central Province, meanwhile, presents a more services-oriented profile among the runners-up, contributing 10.7% to the national services total. It also holds important shares in agriculture (13.9%) and industry (9.6%). Internally, its economy mirrors the national structure most closely among major provinces, with services constituting about 63% of its output. This suggests a diversified regional economy centered on urban hubs like Kandy, but one that lacks the concentrated high-end service power of Colombo.

The comparative analysis reveals a clear hierarchy. The Western Province is the integrated, metropolitan driver of the modern economy. The North Western Province serves as a vital agro-industrial base, and the Central Province as a diversified regional center. Despite a noted increase in the combined share of the other provinces, the gap remains vast. The economic landscape is thus characterized not by convergence, but by a persistent and specialized asymmetry, where the runners-up support the national economy through different, but essential, sectoral strengths, all while operating in the long shadow of the western province.

by Sanath Nanayakkare

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Sri Lanka Insurance supports 1,000 families in flood-affected areas

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Dry ration packs were distributed through the NDRSC

Sri Lanka Insurance Life and Sri Lanka Insurance General, in collaboration with the National Disaster Relief Services Centre (NDRSC), extended vital assistance to 1,000 families affected by the recent ‘Ditwah’ cyclone. The relief initiative was carried out in two phases on 30th November and 2nd December 2025, reflecting the company’s continued commitment to supporting communities in times of distress.

Dry ration packs were distributed through the NDRSC to the Maharagama Urban Council and the Divulapitiya Pradeshiya Sabha, ensuring that aid reached the most affected households swiftly and efficiently. Both distribution programmes were held with the participation of local authorities and the management teams of SLIC Life and SLIC General, further strengthening the company’s close partnership with the communities it serves.

Speaking on the initiative, Chairman of Sri Lanka Insurance, Nusith Kumaaratunga, stated; “Sri Lanka Insurance has always placed community wellbeing at the heart of its purpose. In difficult times such as these, it is our responsibility to stand with the families who have been affected and offer meaningful support. This relief effort reflects our ongoing commitment to uplift communities and reinforces our role as a trusted national insurer focused on protection, care, and compassion.”

In addition to the relief programme, Sri Lanka Insurance has implemented extended operating hours at selected SLIC General branches in the affected areas to ensure uninterrupted service. Claims, customer care teams, and branch staff are working beyond regular hours to provide prompt assistance to policyholders impacted by the severe weather conditions.

Sri Lanka Insurance remains dedicated to safeguarding its customers and supporting communities across the nation, reaffirming its longstanding promise of protection, stability, and service excellence.

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Jaffna Hindu College wins regional AIA Healthiest Schools award

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The college was honoured at a vibrant regional awards ceremony

Jaffna Hindu College was named as one of the winners at the regional award ceremony of the prestigious AIA Healthiest Schools Competition, a flagship initiative by AIA Group aimed at promoting healthier habits among students across Asia-Pacific region through innovative school-based projects. The competition, which drew a record number of entries from eight regional markets, recognises schools that implement innovative and impactful initiatives in the areas of healthy eating, active living, mental wellbeing, and sustainability. Jaffna Hindu College stood out in the Active Lifestyles Award Category for its creative and community-focused project that introduced a bicycle rental system, ensuring greater access to physical activity for all students and encouraging healthier lifestyles across the region.

The winners of AIA Healthiest Schools programme were honoured at a vibrant regional awards ceremony in Da Nang, Vietnam, where the prize money was awarded to the respective schools to support the ongoing health and wellbeing initiatives.

The Cycling Club was introduced to make physical activity accessible and enjoyable for all students. The club introduced a bicycle rental system, managed via a custom software platform, ensuring equitable access regardless of financial background. Students participated in a cycle parade and three themed challenges focused on endurance, speed, and teamwork. The initiative quickly became popular, engaging over 100 students and receiving enthusiastic support from teachers, parents, and local businesses. Experienced cyclists from the community volunteered as coaches, while cycling organisations provided safety training and route planning.

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