News
Sri Lanka’s book publishing industry faces crisis as 18% VAT sparks job losses and closures
By Rathindra Kuruwita
Thousands of jobs in Sri Lanka’s book publishing industry will be lost due to the imposition of VAT (18%) on books publishers claim.They claim that about 30 percent of bookshops have been closed due to the economic crisis.
There had been no taxes on books before 01 January 2024, Sri Lanka Book Pub lish ers Asso ciation (SLBPA), President Samantha Indeewara, said.The book publishing industry was in crisis even before the imposition of VAT, he added.
“The prices of all raw materials have increased. For example, the price of paper has risen by 300 percent in the past few years.”
“Books and stationery prices will increase by more than 20 percent. The income of parents has not risen. What will they do? Children’s education will suffer.”
Indeewara said Sri Lanka imported at least 90 percent of the inputs needed to produce a book. All of them were subjected to VAT and other import duties.”However, the final product was not subjected to VAT earlier.”
Indeewara said book sales had dropped in the 1990s, with the spread of electronic media. Book publishers started the Colombo International Book Fair to reverse the trend.
“But in recent years, book sales have dropped again because of the economic crisis.
SLBPA former President Vijitha Yapa said that when Ranil Wickremesinghe was Prime Minister in 2002, he proposed a tax on books. However, the government had withdrawn the proposals due to protests from the book publishers.
“In 2016, Wickremesinghe again attempted to impose a tax on books. When Wickremesinghe came to the Colombo International Book Fair that year, as the Chief Guest, we again urged him not to impose a tax. The proposal to impose taxes on books was again withdrawn,” he said.
Yapa mentioned that in September 2023, they had heard the government was planning to impose VAT on books. The book industry representatives met the President and inquired about the possible tax.
“The President said nothing was set in stone and that we would have an opportunity to discuss the matter. He told us that the IMF wanted him to impose a tax on books.”
Despite the assurances, the book industry didn’t get an opportunity to discuss the impending taxes with the government, he said. The industry representatives wrote to the President, and his chief of staff, Sagala Ratnayake, said he would inform the President.
“Later, we were asked to talk to the IMF. Then we wrote to the IMF. It has been two months; there has not been a reply from the IMF.”
Yapa said that from what he knows, no other South Asian nation has imposed VAT on books.
“Some publishers only print about 500 copies of a book,” he added. “Earlier, we used to print thousands of copies. Prices of books are now high because we print less. There are no economies of scale. Printing books is so expensive here that people actually print books abroad and bring them here. It’s cheaper for them to pay import taxes than to print in Sri Lanka. Thousands of jobs will be lost.”
Yapa went on to say that 30 percent of bookshops have closed down already, and more shops will go out of business soon.
“We don’t know how much the government is trying to make by taxing us. We don’t know, and they won’t tell us.”
President of the Ceylon Booksellers Importers And Exporters Association, Dinushi Abeywickrama, said the text books they import for students sitting for foreign exams have tripled in price.
“Families with a few kids are seriously affected by this. Parents can’t buy. Earlier, parents used to come and buy the entire set of text books for their kids. Now they buy these books on a staggered basis. Most parents try to see if they can get the text book photocopied,” she said.
The government is violating the Agreement on the Importation of Educational, Scientific and Cultural Materials (also known as the Florence Agreement), she said.
Abeywickrama added this is a 1950 UNESCO treaty whereby states agree to not impose customs duties on certain educational, scientific, and cultural materials that are imported.
“We are a party to that agreement,” she said, adding that the President is a well-read person and that he has used the knowledge he has gained from reading to make a name for himself in the world.
“I, therefore, urge him not to deprive other people from learning and improving themselves by reading books,” she said.
The six lion cubs born at the Ridiagama safari park were named ata ceremony held at the park today (12)
The offspring of Lara and Sula were named Mega, Tara and Agra while the offspring of Dora and Wolly were named Bhumi, Akira and Elsa.
President Anura Kumara Disanayake, who is currently in the United Arab Emirates to participate in the 2025 World Governments Summit, met with the Prime Minister of State of Kuwait Sheikh Ahmed Abdullah Al Ahmad Al Sabah on Tuesday (11) afternoon .
During the discussion, President Disanayake highlighted Sri Lanka’s improved political and financial stability, emphasizing the expanded potentials in investment and tourism sectors.
Both leaders focused on strengthening trade relations and diversifying markets between the two countries. They also discussed the importance of exploring new strategic initiatives to enhance economic cooperation.
President Disanayake expressed his gratitude to Prime Minister and the State of Kuwait for its support in securing the International Monetary Fund (IMF) loan facility, acknowledging its contribution to Sri Lanka’s economic recovery.
Additionally, the President noted that approximately 155,000 Sri Lankan workers are employed in Kuwait, contributing USD 700 million in annual remittances, which serves as a significant boost to Sri Lanka’s economy.
Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, accompanied the President on this visit.
By Shamindra Ferdinando
Former Public Security Minister Rear Admiral (retd.) Sarath Weerasekera yesterday said that it was the responsibility of the NPP government to ensure the safety of Tissa Raja Maha Viharaya, Kankesanthurai.
President Anura Kumara Dissanayake holding the defence portfolio in addition to being the Commander-in-Chief of the armed forces should look into the developing situation, the retired Navy Chief of Staff said.
The ex-lawmaker was responding to Illankai Thamil Arasu Kadchi (ITAK) leader S. Sritharan’s threat to demolish the Tissa Raja Maha Viharaya unless the government handed over the premises to owners of the land acquired over the years to build the Viharaya.
The warning issued at a media conference held at the Jaffna Press Club recently should also draw the immediate attention of the Parliament, Weeraselera said, stressing that the ruling party as well as other political parties represented in parliament couldn’t turn a blind eye to what he called an explosive development.
Declaring that the ITAK had the backing of the north-based EPDP and TNPF, the ITAK chief has vowed to launch a protest against viharaya and to take over the premises.
Weerasekera said that Public Security and Parliamentary Affairs Minister Ananda Wijepala should take immediate measures to prevent build-up against Tissa Raja Maha Viharaya.
According to him, during his tenure as the Chairman of Oversight Committee on National Security he inquired into the situation therein and addressed the issues at hand. Therefore, the ITAK and other Jaffna-based political parties shouldn’t seek to trigger chaos not only in Jaffna, but in other parts as well.
Responding to another query, Weerasekera, who unsuccessfully contested the last general election on the SLPP ticket, urged the NPP as a political party to take a stand as the north was won by them. The unprecedented defeat suffered by the ITAK at the Nov 2024 general election proved that the vast majority of northerners had rejected separatist agenda pursued by the ITAK etc., and therefore it was trying to incite people, Weerasekera said.
ITAK had conveniently forgotten that it regained the right to represent Tamil speaking people again only after the military had eradicated the LTTE that was recognised by the party way back in 2001 as the sole representative of Tamil speaking people, Weerasekera said, asserting that the planned action against Tissa viharaya could be part of their strategy to regain lost ground in the northern and eastern provinces.
Weerasekera said that the ITAK’s threat reminded him of the violent Pongu Thamil campaign launched in the aftermath of 2002 Ceasefire Accord signed between the then government and the LTTE.
Asked whether he intended to push SLPP to raise the temple issue in Parliament, the former minister answered in the affirmative, saying that all right thinking MPs would oppose the ITAK’s racist move.
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