News
Dy. Minister denies increase in VAT
The Deputy Minister of Economic Development, Nishantha Jayaweera, has denied reports on the gazette notification issued to revise Value Added Tax (VAT) from 01 July.
Issuing a statement, the Deputy Minister said the move is aimed at simplifying the tax system in line with government policy, by merging VAT and the Social Security Contribution Levy (SSCL) into a single tax.
He explained that banks and financial institutions, which were previously subject to 18% VAT and a 2.5% Social Security Contribution Levy, will instead pay a consolidated 20.5% VAT from 01 July. However, he stressed that the Social Security tax will no longer be charged separately.
Deputy Minister Jayaweera noted that claims circulating, particularly on social media, that VAT is being increased to 20.5%, are misleading, as the change reflects a restructuring, rather than a new tax hike.
He added that the revision would also reduce administrative requirements, as financial institutions will no longer need to submit separate filings for the two taxes.
Approval of the Cabinet of Ministers was granted to the preparation of the Appropriation Bill for the financial year of 2027 at their meeting held on 30.06.2026.
Accordingly, clearance of the Attorney General has been given to the Appropriation Bill prepared by the Legal Draftsman.
Therefore, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to publish the aforementioned draft bill in the government gazette notification and thereby submit the same to the Parliament for its concurrence.
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Cabinet approves aditional Rs. 2,500 million to the Paddy Marketing Board to purchase 2026 Yala harvest
The Cabinet of Ministers has approved the resolution furnished by the Minister of Agriculture, Livestock, Land and Irrigation to provide an additional Rs. 2,500 million to the Paddy Marketing Board on a reimbursable basis from the Rs. 7,500 million additional allocations granted to the Ministry to implement
the expedited paddy purchasing program for the 2026 Yala harvest.
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Cabinet nod to host the 8th Asian Regional Conference of the Commonwealth Parliamentary Association and the 3rd Joint Asian and South-East Asian Regional Conference of the Commonwealth Parliamentary Association
The 8th Asian Regional Conference of the Commonwealth Parliamentary Association (CPA) and the 3rd Joint Asian and South-East Asian Regional Conference of the CPA are planned to be held over three days in Colombo during April/May 2027.
Approximately 90 delegates including speakers, Deputy Speakers, Member of Parliamentarians, and Parliamentary officers representing member countries of the Commonwealth Parliamentary Association, in the Asian and South-East Asian regions, are expected to participate in these conferences.
The Cabinet of Ministers has approved the resolution furnished by the Prime Minister of the Parliament of Sri Lanka to host the said conferences considering the opportunities to strengthen parliamentary diplomacy and regional cooperation, as well as to enhance international recognition of the Parliament of Sri Lanka within the Commonwealth Parliamentary Association.
Draft of the Appropriation Bill for the Financial Year 2027 su mitted to the Parliament
Cabinet approves aditional Rs. 2,500 million to the Paddy Marketing Board to purchase 2026 Yala harvest
Cabinet nod to host the 8th Asian Regional Conference of the Commonwealth Parliamentary Association and the 3rd Joint Asian and South-East Asian Regional Conference of the Commonwealth Parliamentary Association
SAARC Training Workshop on Financial Modeling for Renewable Energy Projects from 5th to 7th October in Colombo
National Children’s Week from 25th September to 01st October
Nairobi and Munich to host 2029 and 2031 World Athletics Championships
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