News
VAT 18% from next year
By Rathindra Kuruwita
The Cabinet of Ministers had approved an increase in the value added tax (VAT) from 15% to 18% with effect from 01 January 2024, Cabinet spokesman Bandula Gunawardena told reporters on Tuesday.
Addressing the media in Colombo, Gunawardena said the increased VAT will also be imposed on certain goods and services that are currently not taxed.
Last year the government had taken significant steps to increase tax revenue, the Minister said.
The tax revenue during the first nine months of 2023 had been 51 percent higher compared to 2022, he said.
However, the government had failed to reach the tax collection targets recommended by the IMF, he said, adding that was why the IMF had delayed the release of the second tranche of its loan.
Former President Gotabaya Rajapaksa reduced the VAT from 15% to 8% in 2019. It was increased to 15% on 01 September 2022.
Sri Lanka had collected about Rs 1,751 billion as taxes in 2022, Minister Gunawardena said. The total tax and non tax revenue was 1,979 billion. Rs 956 billion was spent on salaries for 2022. Rs 309 billion was spent on paying pensions. Rs. 506 billion was spent on Samurdhi and other social welfare programmes.
“We can increase salaries. But the money will come from the people,” the Minister said, commenting on the state employees’ demand for a pay hike.
News
Advisory for strong winds and rough seas for Multi-day boats in the Bay of Bengal
Advisory for strong winds and rough seas for Multi-day boats in the Bay of Bengal deep sea areas
Issued by the Natural Hazards Early Warning Centre
Issued at 05.00 p.m. 18 September 2026, valid for the next 24 hours.
PLEASE BE AWARE!
The atmospheric disturbance to the North of the Andaman Islands in the Bay of Bengal, is likely to develop into a low pressure area within the next 24 hours.
Due to its influence, wind speed over the Bay of Bengal sea areas will increase during the next few days starting from
tomorrow (19th).
The wind speed in the sea areas marked under the “Advisory” category on the map below will increase to 55-65 kmph at times and those sea areas will be rough or very rough at times.
Navel and fishing communities engaging the activities over this sea area are advised to be vigilant and be attentive to the future forecasts and bulletins issued by the department of Meteorology in this regards.
News
Some NPP manifesto promises may be difficult to fulfil – CIABOC DG
Text and Pic by Priyan de Silva
Director General of the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) Ranga Dissanayake has questioned whether some promises contained in the National People’s Power (NPP) manifesto, A Thriving Nation – A Beautiful Life, could be fulfilled even if the government wanted to implement them.
Dissanayake raised the issue during a discussion following the release of the third biannual report on manifesto monitoring by the March 12 Movement, at the BMICH, on Wednesday.
He questioned whether the report had taken into account legal and institutional constraints affecting the implementation of certain pledges.
Citing the proposal to establish Anti-Corruption Investigation Offices in each district, Dissanayake said such offices could be established only with the agreement of CIABOC and that amendments to the Anti-Corruption Act would be necessary.
He also referred to the pledge to abolish the Executive Presidency, noting that successive governments had made similar commitments since 1994. He questioned whether there had been adequate consideration of where the powers vested in the Executive President would be transferred if the system were abolished.
On the proposal to establish a Public Prosecutor, Dissanayake questioned whether the Government intended to maintain the office alongside the Attorney General, who currently performs prosecution-related functions.
Executive Director of the Institute for Democratic Reforms and Electoral Studies (IRES) Manjula Gajanayake said Dissanayake’s remarks should be regarded as his personal views and not as Government policy.
Monitoring and Evaluation Consultants M. Thilakarajah and D.D. Mataharaarachchi presented the third-phase findings, covering January to June 2026.
News
Yoshitha and ex-Navy chief Karannagoda’s case fixed for PTC
The corruption case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) against former Navy Commander, Admiral of the Fleet Wasantha Karannagoda, and Yoshitha Rajapaksa was set for a pre-trial conference by the Colombo High Court.
The case was taken up before the Colombo High Court on Thursday (17), when the accused, who are currently out on bail, appeared before the court. After considering the submissions made, the court ordered that the case be called for a pre-trial conference.
The CIABOC had filed the case against the accused, alleging that a corruption offence was committed by sending Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa, for training at the Royal Naval College in the United Kingdom despite him not having the required qualifications.
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