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BR says only Prez, PM and Cabinet can make him reverse move
Only listed companies targeted to raise Rs 114 bn
By Shamindra Ferdinando
Finance Minister Basil Rajapaksa has declared that his proposals to impose 25 percent retrospective tax surcharge on listed persons or companies that earned over Rs 2 bn 2020/2021 and increase VAT (Value Added Tax) to 18 percent from the current 15 percent wouldn’t be abandoned.
Appearing on ‘Salakuna,’ a weekly political programme telecast Monday night live on ‘Hiru’ FM Rajapaksa emphasised that he wouldn’t succumb to pressure from those affected by his proposals. Responding to ‘Hiru’ anchor Chamuditha Samarawickrema, the FM said only President Gotabaya Rajapaksa and Preme Minister Mahinda Rajapaksa and the Cabinet could intervene.
FM Rajapaksa said that he discussed the issue at hand with the chambers and didn’t object to the imposition of the surcharge for a year or two in view of the devastation caused by the pandemic, though they opposed haphazard changes in taxes.
However, those companies that hadn’t been listed in the Colombo Stock Exchange were left out of the tax net in spite of them, too, being cash rich, much to the surprise of the business sector.
Rajapaksa urged the media not to engage in a campaign to pressure the government to do away with the proposals.
Presenting the Budget for 2022, Minister Rajapaksa proposed (a) one-time tax surcharge of 25 percent on persons or companies with taxable income over Rupees 2,000 million for the year of assessment 2020/2021. The government expected to recover Rs 100 bn through this tax and (b) VAT on banks and financial service providers to be increased to 18 percent from 15 percent. Minister Rajapaksa stressed that this tax should be paid monthly from 01 January 2022 to 31 December 2022 and not passed onto customers. The government expected to raise Rs 14 bn through the tax.
When some Opposition members interrupted Minister Rajapaksa immediately after he announced the 25 percent surcharge on a selected group of companies, the FM said that he would like to see who represented the interests of the targeted companies.
The Inland Revenue Department says the following companies are likely to be levied proposed one-off tax surcharge: LOLC Holdings (Rs.23,075 mn), Commercial Bank (Rs 16,940 mn ), Ceylon Tobacco (Rs. 15,578 mn ), ExpoLanka Holdings (Rs. 14,830 mn), HNB (Rs 14,096 mn), Dialog Axiata (Rs. 12.034 mn), Ceylinco Insurance (Rs.8,880 mn), Sampath Bank (Rs.8,442 mn), Vallibel One (Rs. 8,117 mn), Sri Lanka Telecom (Rs.7,880), Hayleys (Rs.7,637 mn), Distilleries Company of Sri Lanka (Rs. 6,962 mn), LB Finnace (Rs. 6,807 mn), Royal Ceramics Lanka (Rs. 6,135 mn), Central Finance Company (Rs. 5,544 mn), Tokyo Cement Company (Lanka) (Rs.5,425 mn), People’s Leasing and Finance (Rs. 5,295 mn), Dipped Products (Rs.5,140 mn), National Development Bank (Rs. 5,117 mn), John Keells Holdings (Rs.5,026), Carson Cumberbatch (Rs.4,804 mn), Richard Pieris and Company (Rs. 4,680 mn), Melstacorp (Rs. 4,425 mn), LOLC Finnace (Rs.4,365 mn), Nations Trust Bank (Rs. 4,055 mn), Hemas Holdings (Rs. 3,621 mn), Bukit Darah (Rs. 3,541 mn), Cargills (Ceylon) (Rs.3,481 mn), CIC Holdings (Rs.3,132 mn), Haycarb (Rs. 3,047), SeylanBank (Rs. 3,039 mn), Lanka Walltiles (Rs. 2,960 mn), Nestle Lanka ( Rs.2,947 mn), DFCC Bank (Rs. 2,745), Ceylon Guardian Investment Trust (Rs. 2,721 mn), Citizens Development Business Finance (Rs.2,554), Lanka Tiles (Rs. 2,475 mn), Lion Brewery Ceylon (Rs.2,471 mn), Singer Sri Lanka (Rs.2,452 mn), Ceylon Cold Stores (Rs.2,334 mn), CT Holdings (Rs.2,288 mn), Chevron Lubricants Lanka (Rs.2,225 mn), Commercial Leasing and Finance (Rs. 2,216 mn), Access Engineering (Rs. 2,173 mn), Teejay Lanka (Rs.2,139 mn), Pan Asia Banking Corporation (Rs.2,048) and Commercial Credit and Finance (Rs, 2,005).
Former banker and Samagi Jana Balavegaya lawmaker Eran Wickremaratne strongly opposes the budget proposal. Asked for his stand on FM Basil Rajapaksa’s move and whether the latest proposal is similar to the tax imposed by the UNP but not implemented, MP Wickremaratne told The Island: “The private sector is not averse to paying taxes. They want a predictable tax environment so that they can plan and execute business plans. A one-off tax is arbitrary and unpredictable. It destroys business confidence. It weakens planning as well as foreign investors’ confidence in the country.”
Referring to the doing away with one-off super gains tax declared in 2015 but never implemented, SJB lawmaker Dr. Harsha de Silva stressed that two wrongs did not make a right.
Sources said that the cash strapped government could have targeted unlisted companies too. However, the decision makers had conveniently restricted the targeted group from among the listed group.
Responding to ‘Salakuna’ queries, Minister Rajapaksha strongly defended sharp tax cuts imposed immediately after the change of government in 2019. The minister said that sharp reduction of taxes saved many private companies, including the one that employed the ‘Salakuna’ team of journalists. The minister said so when Chamuditha Samarawickrema asserted that the government caused unnecessary revenue issues by reducing a range of taxes amounting to well over Rs. 500 bn.
Latest News
INS Udaygiri makes port call in Colombo
The Indian Naval Ship (INS) Udaygiri arrived at the Port of Colombo on an official visit today, 8 September 2026, where it was received by the Sri Lanka Navy in accordance with time-
honoured naval traditions.
INS Udaygiri is a 149.02m long Frigate, Commanded by Captain Vikas Sood. Meanwhile, the Commanding Officer of the visiting ship is scheduled to call on Commander Western Naval
Area, Rear Admiral Harsha De Silva at the Western Naval Command Headquarters.
Captain Sood served as the Defence Adviser at the Indian High Commission in Sri Lanka from July 2020 to October 2023.
During their stay in the island, the crew of INS Udaygiri will participate in several goodwill events organized by the Sri Lanka Navy to enhance camaraderie between the two forces.
The visiting personnel are also scheduled to visit prominent tourist and cultural locations across the island.
Additionally, Sri Lanka Navy personnel are expected to visit the ship for capability observation and knowledge sharing, and will conduct onboard training during its stay.
News
22A: Exclusion of 8 petitions questioned, action filed against SC Registrar, others
The Supreme Court has been petitioned seeking an explanation as to how eight petitions filed against the 22nd Amendment to the Constitution were not listed for hearing . Two of the petitioners, namely Dias Bandaralage Ajith Shantha Kumara Jayathilaka and Gunathilakage Dakum Dulara Gunathilaka, have requested an opportunity to examine the official Registry and parliamentary records so that all material facts may be objectively established. They said that their petitions that had been registered by the Supreme Court should have been heard along with other petitions.
The Registrar of the Supreme Court, Secretary General of Parliament, Speaker and the Attorney General have been named as the respondents.
The five-member bench that heard the petitions consisted of Chief Justice P. Padman Surasena, Achala Wengappuli, J, Arjuna Obeyesekere, J, Sampath B. Abayakoon, J and K.M.G.H. Kulatunga, J.
The petitioners sought the explanation in the absence of any judicial order dismissing, rejecting, striking out, terminating or otherwise disposing the said petitions. They have requested the disclosure of the complete procedural history of the unlisted cases.
The second petitioner Gunathilaka has referred to a speech by Jaffna District Independent MP Ramanathan Archuna in Parliament, on 21 August, 2026, regarding X-Press Pearl, a container carrier that sank off the port of Colombo, and related matters.
They have sought leave to proceed under Articles 17 and 126 of the Constitution and asked for a full Bench of the Supreme Court, or the widest Bench, constitutionally permissible.
They also requested that the Chief Justice and Achala Wengappuli refrain from participating in the hearing and determination of their application, having regard to the objective-appearance issue arising from their prior constitutional and judicial participation in matters forming part of the factual subject matter now requiring examination.
Meanwhile, General Secretary of Vinivida Foundation, Nagananda Kodituwakku, has requested the Supreme Court Registrar not to proceed with the determination of 22nd Amendment process, pending the hearing of fundamental rights petition filed by Chairman of the Vinivida Foundation lawyer, Sugandhika Fernando, 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.
(SF)
News
Thailand shuts door on undesirables from Sri Lanka
Sri Lankan passport holders travelling to Thailand wouldn’t be eligible for visa-free entry from 15 September, 2026, according to a new visa notice issued by the Royal Thai Embassy in Colombo.
Under the new measures, all Sri Lankan travellers will be required to obtain a Thai visa before departing for Thailand. Visa applications must be submitted online through Thailand’s official e-Visa system.
The Royal Thai Embassy in Colombo has also clarified that it will not accept visa applications submitted in person or in physical form.
According to the Embassy, tourist visa applications submitted by Sri Lankan passport holders are expected to take approximately 3–7 working days, calculated from the date on which all required documents have been duly completed and submitted.
Processing times for Non-Immigrant Visa and DTV (Destination Thailand Visa) applications may take longer.
Foreign nationals residing in Sri Lanka or the Maldives who hold valid work or residence permits may also require additional processing time.
The Embassy has cautioned applicants that it reserves the right to request additional documents or information when necessary. Applicants may also be asked to attend a visa interview on a case-by-case basis.
The new requirement represents a significant change for Sri Lankan travellers, who will need to complete the visa process before travelling to Thailand from September 15 onward.
The Embassy has urged applicants to rely only on its official communication channels for the latest visa requirements, procedures and updates.
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