News
President ready to exempt school supplies, health equipment, medicine, etc., from VAT
By Saman Indrajith
President Ranil Wickremesinghe yesterday told Parliament that the government was planning to exempt items such as books, school equipment, health equipment, and medicine from VAT.
Making a special statement in the House, the President said: “By 2022, the country was slated to repay approximately US$6 billion in foreign debt annually, amounting to about 9.5% of the GDP, a considerable strain for any nation. Through successful negotiations for debt restructuring, we aim to alleviate this burden by reducing the annual foreign debt payments to 4.5% of the GDP, a substantial halving of the previous percentage.
“If the current trend of economic growth, as observed in 2022 and 2023, persists, we can anticipate maintaining a high percentage of state income. In such a scenario, servicing the debt would no longer pose a burden on the country. Currently, we have managed to elevate state revenue to nearly 11% of the Gross Domestic Product (GDP). This increase necessitated the imposition of Value Added Tax.
“Undoubtedly, this decision was a bitter and challenging one. We made the decision to implement such a tax with great reluctance. However, considering the economic ailment we face, there are no other viable options. We must endure this temporary pain for the greater good. The implementation of VAT has bolstered the government’s revenue, demonstrating to the international community our capacity to repay the debt. With the increase in government revenues and the revival of the economy, the rupee has strengthened. The strengthening of the rupee has led to a decrease in the prices of imported goods, including fuel. As a result, all VAT-paying companies are now reaping the benefits of the stronger rupee, which extends to the entire country. Furthermore, we anticipate additional benefits in the future.”
“The impact of this economic progress is evident throughout society today. How many individuals embark on pilgrimages to Anuradhapura and Sripada from hand tractors to large buses? How many undertake journeys to Talawila and Madu Church for religious purposes? How many indulge in leisurely trips to Nuwara Eliya? How many individuals park their cars on the side of the road, open their trunks, and initiate small businesses due to their inability to repay the loans they obtained? And are they now experiencing a sense of freedom? How challenging is it to secure a seat on a long-distance coach? How many travellers fill the unreserved compartments? How many tourists explore every corner of the country?
“A nation that once struggled to leave their homes is now traversing freely. Previously, they couldn’t afford to put a drop of oil in their car to rush a sick person to the hospital or accompany a deceased loved one to the cemetery. People faced challenges such as not having gas for cooking at home, leading many to prepare meals outdoors. A nation that, when a child fell ill, would go from house to house in the middle of the night searching for a Paracetamol pill,” he said.
News
Parliament: Govt. questioned on returned cheques, delayed payments for disaster victims
Returned cheques, delayed payments and unresolved insurance claims dominated Parliament on Tuesday as National Democratic Front (NDF) MP Ravi Karunanayake asked the government to make statement on compensation and restoration following Cyclone Ditwah.
Raising the matter under Standing Order 27(2), Karunanayake said thousands of citizens, affected by the 28 November, 2025 cyclone, were still waiting for relief, despite a presidential directive that all compensation and restoration work be completed by 31 December, 2025.
Karunanayake told the House that affected communities were reporting “crippling delays, non-payment, returned cheques and unresolved insurance claims,” warning that the situation had left tens of thousands displaced more than a month after the deadline. “These delays raise grave concerns about transparency, administrative capacity and accountability,” he said.
Cyclone Ditwah caused widespread destruction across several districts, claiming lives and damaging homes, infrastructure, agriculture, fisheries and small and medium-sized enterprises. Karunanayake said reports indicated that around 48,000 people were still unable to return to their homes, underscoring the scale of the humanitarian and economic impact.
Full text of Karunayake’s statement: I rise under Standing Order 27(2) for an urgent Government statement on compensation and restoration after Cyclone Ditwah of 28 November 2025, which caused severe loss of life, destruction, and widespread damage. Despite a Presidential directive for completion by 31 December 2025, affected citizens report crippling delays, non-payment, returned cheques, and unresolved insurance claims. Reports suggest tens of thousands remain displaced, raising grave concerns.
For transparency, I seek clarification on:
1. Has the Disaster Management Centre formally approved a consolidated national loss and damage assessment? What is the total estimated loss and approval date?
2. What is the total restoration cost, disaggregated by housing, infrastructure, agriculture, fisheries and SMEs?
3. What is the total affected population? Provide a district-wise breakdown of casualties, displaced families, and destroyed/damaged houses. Is it correct that 48,000 persons cannot return home?
4. What compensation categories, eligibility criteria, and payment rates were approved for households, the deceased, farmers, SMEs, and others and under what authority?
5. As of 31 December 2025 and now, how many payments and total amounts have been disbursed for each band (e.g., Rs. 25,000; Rs. 50,000; Rs.1Mn for deceased; housing bands up to Rs. 10Mn), plus farmer and SME payments, by district?
6. How many eligible beneficiaries remain unpaid, by category and district and what are the principal causes (verification, documentation, banking, funding)?
7. Why have compensation Cheques been returned, how many cases exist and what remedial measures are in place?
8. What steps ensure Insurance Companies settle claims? How many claims and what value remain unpaid?
9. What donor funds (grants, loans, aid) have been received? How much has been spent on compensation vs. infrastructure and when will the International donor conference be held?
I request the Government table its response with annexed district-wise tables on assessments, allocations, disbursements, returned cheques, insurance status and unpaid balances.”
Deputy Defence Minister Major General (retd) Aruna Jayasekara said that the government needs two weeks to respond to the queries raised by MP Karunanayake.
by Saman Indrajith
News
President urges shedding of petty differences to achieve an economically strong Sri Lanka
President Anura Kumara Dissanayake yesterday called for unity, beyond petty differences, to build an economically strong Sri Lanka, declaring that the country’s greatest asset was its human resource and warning that there would be no place for racism or extremism in the nation’s future.
Addressing the 78th National Independence Day celebrations, at Independence Square, in Colombo, the President said Sri Lanka must embark on a path of rebuilding, rooted in its sovereignty, history and values, while embracing reform and progress. The national celebrations, held under the theme, ‘Rebuilding Sri Lanka’, commenced at around 7.30 a.m., paying tribute to those who sacrificed much to secure independence from British rule in 1948.
More than 4,500 personnel from the tri-forces and Police took part in the ceremony, alongside around 400 invited guests, including foreign diplomats. A special security and traffic management plan was also in effect, with over 2,000 Police officers deployed across Colombo to ensure public safety and smooth traffic flow.
In his address to the nation, President Dissanayake paid tribute to past generations who fought for the countrys freedom, describing them as heroic patriots whose sacrifices formed the foundation of the nation.
The land on which we stand today is drenched with the blood and tears of our ancestors, he said, adding that it was the duty of present and future generations to honour that legacy.
The President stressed that rebuilding Sri Lanka required drawing strength from the country’s proud history while rejecting harmful practices of the recent past. Economic development, he said, must not erode the foundations of the nation but instead be firmly rooted in the soul of the land and its people.
Emphasising the importance of human capital, the President said Sri Lanka must transform its human resources into a competitive force capable of standing alongside developed nations. He underscored the need to prioritise knowledge, unity and progress over ignorance, prejudice and division, and announced that the Government was ready to implement the most far-reaching education reforms in the country’s history to achieve this goal.
We are prepared to initiate a transformative era in education, he said, pledging to overcome resistance from outdated thinking, and expressing confidence that the people would support the reform process.
The President also highlighted the centrality of the rule of law, national unity and healthy international relations in rebuilding the country. True freedom, he said, could only be achieved through economic strength, supported by good governance and social cohesion.
Reaffirming his commitment to national unity, President Dissanayake said racism and extremism would not be tolerated, warning that both only weakened the nation. He called on all segments of society, including the Government, Opposition, public service and religious leaders, to unite with determination to rebuild Sri Lanka in every sphere.
News
PM: No withdrawal of modules introduced for Grade 6 under proposed education reforms
Prime Minister and Education Minister Dr Harini Amarasuriya told Parliament on Tuesday (3) that none of the modules introduced for Grade 6 under the proposed education reforms had been withdrawn.
Responding to a question by SJB Kurunegala District MP Nalin Bandara Jayamaha, the Prime Minister said the government was planning to implement reforms from 2027.
“Only the modules for the first term of Grade 6 have been printed so far. None of these modules has been rejected or withdrawn. They will be used when the reforms are implemented. No decision has been taken to discard them or to take any action that would result in a financial loss,” she said.
The PM said distribution of the printed Grade 6 textbooks, which had been stored in warehouses, had already commenced and that the government expected to complete the distribution of them by mid-February.
“The teaching process has already begun. As the existing syllabus remains in force, teachers are continuing instruction under the current curriculum,” the Prime Minister said.
MP Jayamaha said there had been controversy surrounding a particular Grade 6 module and sought clarification as to whether it would be withdrawn.
In response, the Prime Minister reiterated that no modules had been removed, due administrative action had been taken with regard to the relevant Grade 6 module and that the matter would be addressed appropriately.
By Saman Indrajith
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