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.

Sri Lanka Podujana Peramuna (SLPP) National Organiser Namal Rajapaksa has alleged that President Anura Kumara Dissanayake is attempting to influence judicial matters.

Addressing the media in Kalutara yesterday, MP Rajapaksa said it had become evident during May Day proceedings that key decisions were being communicated from the JVP raising concerns over the separation of powers.

“We only learned on May Day that judicial decisions were made from the JVP platform. If the President believes he can deliver court rulings in such a manner while ignoring public concerns, we will respond accordingly,” he said.

Namal also criticised the President’s May Day speech, accusing him of focusing on political opponents rather than addressing workers’ rights or economic recovery. He described remarks about potential legal action against opposition figures as inappropriate for a head of state.

Commenting on reports circulating on social media regarding former President Mahinda Rajapaksa being summoned in connection with a bribery inquiry, Namal said no official written communication had been received. He alleged that statements linked to the case were obtained under coercion, a claim he said had been supported by an affidavit submitted to court.

Namal also raised concerns about the conduct of law enforcement authorities, alleging increasing political influence within the police. He cited a recent incident where police reportedly declared a death a suicide before the completion of the autopsy, questioning the urgency and procedure followed.

Namal expressed confidence in the judiciary, stating that courts would continue to act independently, regardless of political statements.

He added that the SLPP would continue to engage with the public and strengthen its grassroots presence.

The book “Galle Face colour revolution or Regime Change project 2022,” written in Sinhala by Mohan Samaranayake, analyzing the political upheaval that led to the ouster of President Gotabhaya Rajapaksa from office and toppling his government, will be launched on 07 May, at 3.30 pm, at the Sri Lanka Foundation Institute, Independence Square, Colombo 7.

The author views the 2022 political and economic turmoil, which was promoted as ARAGALAYA by its proponents, as a regime change colour revolution, backed by external powers, with the support of local forces ,with different interests, examines its economic, geopolitical, social and historical roots in detail.

Professor Gamini Samaranayake, former Chairman, University Grants Commission, and Professor Lalithasiri Gunaruwan of Department of Economics, University of Colombo, will deliver speeches at the launch.

The author, Mohan Samaranayake, is a media personality with more than four decades of experience in the field and is an analyst of local and international political and economic developments.