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SLMA urges PM to hike taxes on tobacco and liquor

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The Sri Lanka Medical Association (SLMA) yesterday wrote to Prime Minister and Minister of Finance, Ranil Wickremesinghe, urging him to follow the guidelines of World Bank (WB) and World Health Organisation (WHO) when determining taxation on tobacco and alcohol.

Given below is the letter sent to the Prime Minister by the medical body: “The SLMA wishes to place on record its appreciation of the current efforts to mitigate the unprecedented economic crisis in the country. As you would agree, both tobacco and alcohol cause enormous social, health and economic harms to Sri Lanka. The UNDP and WHO estimated that tobacco caused an economic loss of Rs. 214 billion in 2016, while the National Authority on Tobacco and Alcohol, WHO and the SLMA conducted a study using a very conservative methodology that estimated economic losses from alcohol to be Rs. 120 billion in 2015.

“Taxation analyses undertaken by the National Authority on Tobacco and Alcohol, as well as reputed research agencies, such as the Institute of Policy Studies and Verite Research, have shown the affordability of cigarettes (the number of cigarettes that can be purchased using per-capita GDP) has increased steadily over many years, while the percentage of tax derived from these products by the government has eroded due to unscientific and ad-hoc taxation policies.

“This is contrary to recommendations of agencies, such as the World Bank and WHO, that urge governments to regularly increase taxes to sustainably reduce the affordability of cigarettes which will increase government revenue and reduce consumption and thereby the harms to the population. Therefore, there is an urgent requirement to increase taxes and an opportunity to increase government revenue.

“In this respect, we wish to propose the following to improve the government income and reduce the outflow of foreign currency, in relation to tobacco and alcohol.

“1. Increase taxation of tobacco products using a technically sound formula that will align the taxation to inflation and minimize their affordability. Technical recommendations in this regard have been made by the National Authority on Tobacco and Alcohol, Institute of Policy Studies and Verite Research.

“2. Carry out an urgent review of current alcohol taxation policy and take steps to increase taxation in order to reduce its affordability as a means of increasing government revenue and decreasing its consumption and widespread harm.

“3. Consider both tobacco and alcohol products as the non-essential products, which they are. Therefore, steps need to be taken to:

“a. Discontinue all the duty-free concessions provided for sale of these products.

“b. Disallow imports of alcohol and tobacco products and products related to manufacture of such products. For example, ethanol, tobacco leaf, tendu leaf, chemicals, packing material and other products to limit outflows scarce foreign currency from the county.

“4. Remove tobacco and alcohol products that are in the basket of products that are used to track consumer price inflation to remove the effect of tax increases of these products on the inflation calculations.

“Public opinion polls have also repeatedly shown that such tax increases are the most popular tax increases. Currently, more than 90% of Sri Lankans do not smoke and more than 80% do not use alcohol regularly.

Both alcohol and tobacco industries will use their time-tested formula for preventing such measures – lobbying individuals and publishing flawed research claiming that increasing prices will increase tobacco smuggling and increase production of illicit alcohol. As you are aware, such arguments are made without basis or facts and are only intended to mislead policy makers. You would also agree that both tobacco smuggling and production of illicit alcohol are law enforcement issues, which cannot be prevented simply by competing in price.Therefore, we urge you to take on this issue as a priority national requirement that will help to mitigate the current and future negative impacts of the economic crisis in Sri Lanka, which will also improve the quality of life of the people of this country.”



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Construction and Concrete waste recycling centre opened in Ekala under the Clean Sri Lanka programme

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A recycling centre for the management of construction and demolition (C&D) waste, established in line with the Clean Sri Lanka national programme, was declared open this morning (08) at the Ekala Industrial Zone.

The Clean Sri Lanka Secretariat has allocated Rs. 200 million for this project. Established within the precast yard premises belonging to the State Engineering Corporation under the Ministry of Housing, Construction and Water Supply, the project marks a significant step towards a sustainable environmental transformation in Sri Lanka’s construction sector.

Globally, the construction industry accounts for 40% of total waste generation and 25% of carbon emissions. In Sri Lanka, nearly 300 tonnes of such waste are collected daily from the Western Province alone.

Until now, the indiscriminate disposal of such debris has contributed to soil pollution, water contamination and increased flood risks. Under this project, however, such waste will be transformed into valuable raw materials through modern technology. This initiative is expected to minimise the depletion of natural resources while significantly reducing construction costs.

The centre, which is being operated with the full involvement of the State Engineering Corporation, has been provided with machinery and land valued at Rs. 350 million. In addition to the recycling plant, which has a capacity of 200 metric tonnes per hour, a modern laboratory and an administrative building have also been constructed. Under the “Clean Sri Lanka” programme, Rs. 200 million has been allocated for the project, of which Rs. 150 million has already been released.

There are also plans to expand research activities in the future by engaging engineering faculties of State universities in the programme. The support and contribution of all construction contractors and stakeholders are expected in building a circular economy within the construction sector while safeguarding natural resources for future generations.

Minister of Housing, Construction and Water Supply Dr Susil Ranasinghe, Deputy Minister of Environment Anton Jayakody, Deputy Minister of Housing, Construction and Water Supply T.B. Sarath, Deputy Minister of Labour Mahinda Jayasinghe, Member of Parliament Najith Indika, Additional Secretary to the President at the Clean Sri Lanka Secretariat S.P.C. Sugeeshwara, Additional Director General of the Clean Sri Lanka Secretariat Kapila Senarath, Director (Environmental) of the Clean Sri Lanka Secretariat Anjula Premarathna, Chairman of the State Engineering Corporation Engineer Neranjan Fernando and Deputy General Manager of the State Engineering Corporation Charuka Hettiarachchi, along with several others, were present at the occasion.

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President of the Socialist Republic of Vietnam pays floral tribute to the Ho Chi Minh Statue

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President of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam, To Lam, who is on a State visit to Sri Lanka at the invitation of President Anura Kumara Dissanayake, paid floral tribute this morning (08) to the statue of Ho Chi Minh situated within the premises of the Colombo Public Library.

Upon arriving at the Colombo Public Library, President To Lam was warmly received by President Anura Kumara Dissanayake, while a group of children holding the national flags of both countries stood along the route to welcome the Vietnamese President.

Following the floral tribute to the Ho Chi Minh statue, President To Lam also viewed a collection of paintings created by schoolchildren.

Thereafter, the Vietnamese President attended the ceremony marking the commencement of the expansion of the “Vietnam–Ho Chi Minh Space” located at the Colombo Public Library, where he also viewed a collection of historical photographs on display.

On the occasion, Chief Librarian of the Public Library, Mrs Varuni Gangabadarachchi, briefed those present on the architectural plans prepared for the renovation and expansion project of the Ho Chi Minh Space. A donation of US$50,000 for the project was also presented to the Mayor of Colombo, Mrs Vraie Cally Balthazaar, by  Nguyen Huu Nghia, Member of the Central Committee of the Communist Party of Vietnam and Auditor General of the State Audit Office of Vietnam.

Minister of Environment, Dr Dhammika Patabendi, Mayor of Colombo Mrs Vraie Cally Balthazaar, Deputy Mayor Hemantha Werakoon and several others were also present at the occasion.

[PMD]

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Urgent reforms needed to eradicate drug menace, says President

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President Anura Kumara Dissanayake has instructed officials to swiftly introduce all necessary reforms, including amendments to existing laws, in order to eliminate the drug menace from the country.

The President issued these instructions while attending the meeting of the “Ratama Ekata” National Steering Council convened on Thursday (07) morning at the Presidential Secretariat to discuss efforts aimed at eradicating the drug menace.

He also directed the relevant authorities to take all necessary steps to expedite the process of destroying seized narcotics as quickly as possible under proper legal procedures, thereby preventing them from re-entering society and to accelerate the process of punishing offenders.

The President emphasised the need to speed up this process in order to build public confidence, as well as the confidence of the teams engaged in operations, noting that the successful implementation of the “Ratama Ekata” national initiative would thereby be strengthened through collective participation.

The progress of anti-narcotics operations carried out under the “Ratama Ekata” national initiative, including raids and arrests, was extensively reviewed at the meeting. Officials pointed out that raids related to narcotics had increased by 80% since the launch of the programme.

Since the launch of the “Ratama Ekata” national operation on 30 October 2025, authorities have seized 5,437.457 kilogrammes of cannabis, 1,936.325 kilogrammes of heroin, 1,991.414 kilogrammes of crystal methamphetamine (“ice”), 271.724 kilogrammes of cocaine, 1,574,895 narcotic pills, and 629,988 illicit cigarettes. A total of 168,460 suspects have also been arrested in connection with these offences.

The current progress of the legal amendments required to eradicate the narcotics menace from the country was reviewed at the meeting, and it was noted that steps had been taken to submit the Rehabilitation (Amendment) Bill No. 54 of 2007 to the Cabinet in due course. Discussions were also held regarding the rehabilitation process, the strategies that could be adopted in that regard, and the measures taken to develop related facilities.

It was further revealed that, at Divisional Secretariat level, 25 families most severely affected by narcotics in each division had been selected for attitude development programmes. The President stressed the importance of implementing all such programmes through local religious centres.

The President also made clear that anti-drug awareness programmes should not merely be limited to conducting awareness campaigns, but should include continuous follow-up to assess whether the message had been properly communicated to society and to monitor progress. He highlighted the importance of maintaining this mechanism continuously with the involvement of religious leaders, including members of the Maha Sangha in the respective areas.

The President also inquired into measures being taken to establish a separate court for narcotics-related cases, expedite the receipt of Government Analyst reports, and accelerate the filing of cases.

He also stressed the urgent need for a rapid programme to expedite legal proceedings and rehabilitation processes concerning inmates imprisoned for narcotics-related offences, in order to ease prison overcrowding.

The Inspector General of Police also briefed the meeting on investigations and the current status relating to Buddhist monks who were recently arrested in connection with narcotics offences.

The President was further briefed on the progress of programmes jointly implemented by the Ministry of Education and the Women and Children’s Bureau to curb organised efforts to draw schoolchildren into narcotics use. He was also informed about community-based programmes planned in conjunction with the International Day Against Drug Abuse and Illicit Trafficking, which falls on 26 June.

Among those present at the meeting were the Anunayaka Theros of the Malwathu and Asgiri Chapters, senior clergy representing several Buddhist Nikayas, Christian priests, Hindu Kurukkals, Muslim religious leaders, senior government officials including Secretary to the President Dr Nandika Sanath Kumanayake, ministry secretaries, senior tri-forces commanders, Inspector General of Police Priyantha Weerasooriya, heads of relevant institutions, senior security officials, and representatives of the “Ratama Ekata” National Steering Council.

[PMD]

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