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Sri Lanka’s book publishing industry faces crisis as 18% VAT sparks job losses and closures

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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 However, the government had withdrawn the proposals due to protests from the book publishers.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 The proposal to impose taxes on books was again withdrawn,” he said.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.



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JMSDF MURASAME departs island

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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.

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UK sanctions Shavendra, Wasantha, others in line with Labour party’s election pledge – Secretary of State

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Lammy

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.”.

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China and US fund ambitious Ambuluwawa Cable Car Project

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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.

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