News
COPF slams Treasury for delaying imposition of VAT on foreign digital and software providers

The Committee on Public Finance (COPF) told officials from the Ministry of Finance that the state was suffering a substantial revenue loss due to a delay in imposing VAT on foreign digital and software providers.
COPF Chairman Harsha de Silva, MP, said that had also created an unequal playing field for domestic digital and software providers.Even local travel booking agents were subject to VAT, while websites such as Booking.com had been exempted, the COPF said.
The Ministry officials said they were awaiting the introduction of a new law to impose VAT on foreign service providers.The COPF members said the officials had to put in place a mechanism to collect taxes and create an equal playing field until the new law was made.
The COPF also deliberated on the Social Security Contribution Levy (Amendment) Bill. The amendment to the Act, lowering the turnover threshold of registration for the Social Security Contribution Levy from Rs. 120 million to Rs. 60 million per annum, effective from 01 January 2024, had been approved by the Committee.
However, the chair raised concerns about the need for maintaining two separate tax structures.He suggested consolidating the taxes under the VAT, which would result in an average effective rate of 22 percent when combined with the Social Security Contribution Levy. In response, the Ministry of Finance said their objective was to meet revenue targets and that they intended to use that approach pending transition to a more streamlined tax system.
Furthermore, the COPF also queried the Officials about the progress of recovering the lost revenue resulting from the initial ‘sugar scam’, as highlighted in the report by the Auditor General. Officials contended that it should not be classified as a tax loss, but rather as tax foregone due to the reduction of the special commodity levy from Rs 50 to 25 cents. Despite that explanation, the Committee asked the officials to furnish data on certain companies that had disproportionately profited from the tax adjustment.
The COPF Chairman raised questions regarding the Government’s inability to recover the outstanding forgone tax, especially in light of substantial tax hikes such as those on PAYE and VAT affecting the average Sri Lankan. Officials said they had been able to reclaim only 30% of the improperly accrued tax through corporate tax, leaving the remaining 70% uncollectable within the existing tax framework. The COPF urged officials to explore options for retrieving the entire forgone tax revenue or propose new legislation to address such scenarios in the future and prevent their recurrence. While both the VAT (Amendment) bill and the Social Security Contribution Levy were endorsed by the Committee, the Chairman dissented, expressing the aforementioned concerns.
Latest News
JMSDF MURASAME departs island

Japan Maritime Self-Defence Force (JMSDF) MURASAME which arrived in Sri Lanka on 22 March 2025 for replenishment, departed the island on Tuesday (25 Mar).
The Sri Lanka Navy bade customary farewell to the departing ship at the Port of Colombo, following naval traditions.
During the stay in Sri Lanka, crew members of JMSDF MURASAME visited some popular tourist destinations within the Colombo city.
News
UK sanctions Shavendra, Wasantha, others in line with Labour party’s election pledge – Secretary of State

UK Secretary of State for Foreign, Commonwealth and Development Affairs, David Lammy, has said that sanctions were imposed on former Army Commanders General Shavendra Silva, General Jagath Jayasuriya, Admiral of the Fleet Wasantha Karannagoda and one-time LTTE Ampara-Batticaloa commander Vinayagamoorthy Muralitharan, alias Karuna Amman, in accordance with an assurance given to the electorate at the 2024 July general election.
The Labour party won the July 2024 general election.
The British government statement quoted Lammy as having said that he made a commitment during the election campaign to ensure that those responsible would not be allowed impunity. Lammy emphasised that this decision ensured that those responsible for past
human rights violations and abuses were held accountable.
The text of the statement: “The UK sanctions former Sri Lankan commanders and an ex–Liberation Tigers of Tamil Eelam (LTTE) commander responsible for serious human rights violations and abuses during the civil war.
* Sanctions aim to seek accountability for serious human rights violations and abuses, committed during the civil war, and to prevent a culture of impunity.
* UK is committed to working with new Sri Lankan government on human rights, welcoming their commitments to national unity.
The UK government has imposed sanctions on 4 individuals responsible for serious human rights abuses and violations during the Sri Lanka civil war, including extra-judicial killings, torture and/or perpetration of sexual violence.
The individuals sanctioned by the UK today include former senior Sri Lankan military commanders, and a former LTTE military commander who later led the paramilitary Karuna Group, operating on behalf of the Sri Lankan military against the LTTE.
The measures, which include UK travel bans and asset freezes, target individuals responsible for a range of violations and abuses, such as extra-judicial killings, during the civil war.
Secretary of State for Foreign, Commonwealth and Development Affairs, David Lammy, said:
The UK government is committed to human rights in Sri Lanka, including seeking accountability for human rights violations and abuses which took place during the civil war, and which continue to have an impact on communities today.
I made a commitment during the election campaign to ensure those responsible are not be allowed immunity. This decision ensures that those responsible for past human rights violations and abuses are held accountable.
The UK government looks forward to working with the new Sri Lankan government to improve human rights in Sri Lanka, and welcomes their commitments on national unity.
During her January visit to Sri Lanka, Minister for the Indo-Pacific, Catherine West MP, held constructive discussions on human rights with the Prime Minister, Foreign Minister, civil society organisations, as well as political leaders in the north of Sri Lanka.
For communities to move forward together, there must be acknowledgement, and accountability for past wrongdoing, which the sanctions listings introduced today will support. We want all Sri Lanka communities to be able to grow and prosper.
The UK remains committed to working constructively with the Sri Lankan Government on human rights improvements as well as their broader reform agenda including economic growth and stability. As part of our Plan for Change, the UK recognises that promoting stability overseas is good for our national security.
The UK has long led international efforts to promote accountability in Sri Lanka alongside partners in the Core Group on Sri Lanka at the UN Human Rights Council, which includes Canada, Malawi, Montenegro, and North Macedonia.
The UK supported Sri Lanka’s economic reform through the International Monetary Fund (IMF) programme, supporting debt restructuring as a member of Sri Lanka’s Official Creditor Committee and providing technical assistance to Sri Lanka’s Inland Revenue Department.
The UK and Sri Lanka share strong cultural, economic and people to people ties, including through our educational systems. The UK has widened educational access in Sri Lanka through the British Council on English language training and work on transnational education to offer internationally accredited qualifications.”.
News
China and US fund ambitious Ambuluwawa Cable Car Project

By Samanthi Weerasekera
China and the United States are jointly funding the ambitious Ambuluwawa Cable Car Project, which, once completed, will offer an unparalleled experience, with cable cars operating over a kilometer between two mountains without any support structures.
During a visit to the project site on Saturday (23), Chinese Ambassador Qi Zhenhong said that this project is another symbol of the strengthening bond between Sri Lanka and China. “It is a pleasure to have a Chinese investor involved in such a project that further strengthens the bond between Sri Lanka and China,” the Ambassador said, reflecting on the significant international collaboration.
NDF Kandy District MP Anuradha Jayaratne, Chairman of the Ambuluwawa Board of Trustees, stated that the feasibility study for this project was first conducted 18 years ago. He credited the success of the project to the joint investments from China and the United States. “I would like to gratefully recall that it was possible to turn this dream into a reality because of the investors from China and America,” Jayaratne said.
He said that the first phase of the Ambuluwawa Cable Car Project, scheduled for completion later this year, is expected to provide a unique travel experience for visitors. Passengers will embark on a 600-meter cable car journey from the entrance gate of the Ambuluwawa Religious and Biodiversity Complex to the summit of Ambaluwawa Mountain. From there, a thrilling 1.2-kilometer ride will take them unsupported to the Ambuluwawa Tower, offering breathtaking views and a glimpse into Sri Lanka’s natural beauty.
Jayaratne noted that the second phase of the project will extend the cable car line to the Gampola Railway Station. This addition will provide a seamless connection for foreign tourists travelling by the Badulla train and those heading to Nuwara Eliya, allowing them to experience Sri Lanka’s first-ever cable car ride. The second phase will not only enhance tourism but is also expected to transform Gampola into a world-class tourist and commercial hub.
-
Business5 days ago
Cargoserv Shipping partners Prima Ceylon & onboards Nestlé Lanka for landmark rail logistics initiative
-
News3 days ago
Seniors welcome three percent increase in deposit rates
-
Features3 days ago
The US, Israel, Palestine, and Mahmoud Khalil
-
News3 days ago
Scholarships for children of estate workers now open
-
Business5 days ago
Sri Lankans Vote Dialog as the Telecommunication Brand and Service Brand of the Year
-
News4 days ago
Defence Ministry of Japan Delegation visits Pathfinder Foundation
-
Features5 days ago
The Vaping Veil: Unmasking the dangers of E-Cigarettes
-
News5 days ago
‘Deshabandu is on SLC payroll’; Hesha tables documents