News
FSP faults govt. for tax amnesty
The Frontline Socialist Party (FSP), a splinter group of the JVP, has faulted their erstwhile comrades in the government for including Clause 1.9 in the 2025 Budget Technical Notes, which allows tax-evading businesses to settle unpaid taxes from 2022–2023 within six months without penalties or interest.
Addressing a press conference at the party headquarters in Nugegoda on Friday FSP Education Secretary Pubudu Jagoda highlighted that existing laws, such as the Inland Revenue Act No. 24 of 2017, mandate a 1.5% monthly interest (18% annually) and a 25% fine for tax evasion. However, the new clause waives these penalties, costing the government billions in lost revenue.
“However, the Clause 1.9 of Technical Note of the Budget proposals presented by President Anura Kumara Dissanayake proposes if these tax evaders could settle their taxes due from 2022 to 2023 within six months, the provisions of the Inland Revenue Act No. 24 of 2017 and the Tax Act No. 14 of 2022 regarding penalties for unpaid taxes would not apply for such defaulters.
We know that Section 157 of the Inland Revenue Act No. 24 of 2017 specifies that if a taxpayer fails to pay the due taxes, they must pay the applicable interest. Section 159 clearly states that an interest rate of 1.5% per month must be charged, which amounts to 18% per year. Additionally, a 25% fine must be paid. Now, according to the budget, the government is saying that these provisions of the law do not apply, and they will not collect these fines and interest. Clause 1.9 states that if unpaid taxes from 2022–2023 are settled within six months, the provisions of the Inland Revenue Act No. 24 of 2017 and the Tax Act No. 14 of 2022 regarding penalties for unpaid taxes will not apply.
For example, WM Mendis and Company, which evaded Rs. 1.5 billion in taxes, would owe Rs. 1 billion in interest over five years, but the government is forgoing this. Jagoda revealed that companies evaded Rs. 243 billion from March 2023 to December 2024, with total unpaid taxes reaching Rs. 1,068 billion. Meanwhile, ordinary citizens, including 580,000 families, pay nearly Rs. 40,000 monthly in taxes, facing heavy burdens while the government offers relief to fraudulent businesses. The FSP called on former comrades in government to clarify their stance on this issue.
News
The use of local organic Agricultural products in the Bakery Industry will strengthen both local farmers and the tourism industry – PM
Prime Minister Dr. Harini Amarasuriya stated that the use of local organic agricultural products in bakery production would provide significant support to both local farmers and the growth of the tourism industry.
The Prime Minister made these remarks while addressing the Annual meeting of the All Ceylon Bakery Owners’ Association, held at the Shangri-La Hotel, Colombo, on Friday (12 June).
The Prime Minister stated,
“At a decisive moment when the country is moving towards a new phase of economic transformation, I believe that the bakery industry has the potential to become a key driver of the national economy, rather than remaining limited to flour-based products alone.
The food production must be mainly considered the quality and safety of food. Therefore, instead of focusing solely on taste, we should introduce nutritious and healthy products to the market that are free from artificial flavourings and colourings.
By using ingredients such as rice flour, finger millet, foxtail millet, green gram, and indigenous tubers to create value-added products, the bakery industry has the opportunity to capitalize on the growing global trend towards health-conscious diets.
The use of local organic agricultural products in food prepared for foreign tourists will provide substantial benefits to local farmers while also contributing to the growth of the tourism industry. At the same time, the government remains committed to strengthening local entrepreneurs by reducing challenges related to the importation of raw materials, providing concessionary loans for new technologies, and offering the technical assistance required to meet international standards.
The government has already launched programmes through the Ministry of Industries to provide the necessary training and market linkages to help small and medium-scale bakery owners develop and expand their businesses”.
The occasion was attended by the Deputy Minister of Industries Chathuranga Abeysinghe, President of the All Ceylon Bakery Owners’ Association N.K. Jayawardana, and a number of members of the Association were also present at the event.

Prime Minister’s Media Division
News
Prime Minister meets with UNICEF delegation
Prime Minister Dr. Harini Amarasuriya met with a delegation from the UNICEF on Friday (June 12) at Temple Trees to discuss ongoing efforts to support the recovery of the education sector following the impact of Cyclone Ditwah.
Discussions focused on the implementation of activities outlined in the report titled “Cyclone Ditwah Education Emergency Response Plan: Phase 1 Progress Updates (January–April 2026).” The meeting provided an opportunity to review the progress achieved during the initial phase of the response and to discuss future interventions aimed at supporting children and schools affected by the disaster.
The Prime Minister and the UNICEF delegation also exchanged views on strengthening collaboration to ensure the continuity of education and the well-being of affected children.
The UNICEF delegation included Emma Brigham, UNICEF Representative, Begona Arellano, Deputy Representative, and other UNICEF officials.

(Prime Minister’s Media Division)
News
Switzerland to vote on plan to cap population at 10 million
Can a country put a fixed limit on its population? That is the question Switzerland will be answering on Sunday when voters go the polls to decide on a proposal to cap their population at 10 million, a move that has exposed divisions about immigration in the Alpine nation.
The move is backed by the right-wing Swiss People’s Party, which describes it as a “sustainability initiative” aimed at easing pressure on housing, public services and the environment. However some voters see this as the party’s latest anti-immigration move.
Dubbing it a “chaos initiative”, the government, other political parties, business leaders and trade unions argue it will deprive hospitals and hotels of much needed staff, and damage hard-won relations with the European Union, leaving non-EU member Switzerland isolated in a very risky world.
Switzerland’s population has grown rapidly since 2002, when it stood at 7.3 million. Now it is 9.1 million, 27% of whom are Swiss residents who were born abroad.
Switzerland’s system of direct democracy means all major decisions are taken via the ballot box. Campaigners simply have to gather 100,000 signatures to ensure a nationwide vote.
Many voters are concerned by overcrowded trains, expensive apartments and rising health costs.
The latest opinion polls indicate this could be a very close vote.
They suggest voters are inching towards a no vote by a wafer thin margin, with 52% opposed – but polls remain divided, with 45% saying they are in favour of the proposal and a significant number of voters still undecided.
[BBC]
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