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VAT 18% from next year

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Bandula

By Rathindra Kuruwita

The Cabinet of Ministers had approved an increase in the value added tax (VAT) from 15% to 18% with effect from 01 January 2024, Cabinet spokesman Bandula Gunawardena told reporters on Tuesday.

Addressing the media in Colombo, Gunawardena said the increased VAT will also be imposed on certain goods and services that are currently not taxed.

Last year the government had taken significant steps to increase tax revenue, the Minister said.

The tax revenue during the first nine months of 2023 had been 51 percent higher compared to 2022, he said.

However, the government had failed to reach the tax collection targets recommended by the IMF, he said, adding that was why the IMF had delayed the release of the second tranche of its loan.

Former President Gotabaya Rajapaksa reduced the VAT from 15% to 8% in 2019. It was increased to 15% on 01 September 2022.

Sri Lanka had collected about Rs 1,751 billion as taxes in 2022, Minister Gunawardena said. The total tax and non tax revenue was 1,979 billion. Rs 956 billion was spent on salaries for 2022. Rs 309 billion was spent on paying pensions. Rs. 506 billion was spent on Samurdhi and other social welfare programmes.

“We can increase salaries. But the money will come from the people,” the Minister said, commenting on the state employees’ demand for a pay hike.



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Utilisation of Consolidated Fund for estate workers’ incentives challenged

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Rohini

SJB MP warns Budget Chief may end up behind bars

Matale District lawmaker Rohini Kaviratne (SJB) has questioned President Anura Kumara Dissanayake’s proposal to utilise the Consolidated Fund to pay a section of the estate workers’ salary increase, beginning January next year.

President Dissanayake, who also holds the Finance portfolio, on 07 November announced that the daily wage of estate workers would be increased to Rs. 1,750 from Rs. 1,350 under the proposed new scheme. President Dissanayake proposed that estate owners contribute Rs. 200 while the Treasury granted an additional Rs. 200 as a daily attendance incentive.

Declaring that the SJB believed that the daily wage of estate workers should be Rs 2,000, the former UNPer emphasised that the government couldn’t, under any circum stances, grant privileged status to those working for big estates.

According to her, the President’s proposal was contrary to the Public Financial Management Act, No. 44 of 2024 (PFMA) that became operational on 09 August, 2024. Introduced in the wake of Aragalaya and declaration of bankruptcy, PFMA replaced the previous Fiscal Management (Responsibility) Act, No. 3 of 2003.

Kaviratne said that Finance Secretary, Harshana Sooriyapperuma, who previously served as a National List MP of the NPP, may not have been conversant with that Act, and other related laws, hence the unprecedented proposal.

The SJB MP said that she had raised the issue with the Auditor General, the National Procurement Commission, as well as the Commission to Investigate Allegations of Bribery or Corruption.

The Opposition MP warned that in case the government acted, regardless of the laws of the land, the Director Budget, too ,could end up in prisons like former Immigration and Emigration Chief Harsha Illukpitiya.

By Shamindra Ferdinando

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Oxford Walk raises $13,000 for rural communities in Sri Lanka

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Some of the participants

After a week of typical British rain, on Sunday 2 November 2025 the clouds parted, and a glorious Autumnal sun rose splicing together the blue skies over the historical and beautiful city of Oxford, England. University of Oxford Sri Lanka Society students Leo, Ethan, Pradeep, Niorla, Taya, and others clad in distinctive neon yellow vests bearing the Solar Village SDG emblem on their backs, gathered outside the prestigious Saïd Business School of the Oxford University, to greet an avid group of fundraising walkers.

Solar Village SDG, a community interest company, based in Oxfordshire UK, had organised a sponsored walk taking sizeable groups of fundraisers on an 8 km walkabout through this gorgeous city’s most famous touch points, taking in the Radcliffe Square, the Bridge of Sighs, Bodleian Libraries, Museums and numerous other historic landmarks. Oxford University’s student marshals guided the walkers through their colleges and provided fascinating facts about this international city, its world-renowned history and alumni as well as the unique aspects of Oxford University life.

The organiser, Solar Village SDG, is dedicated to promoting sustainable development, poverty reduction, and climate action in Sri Lanka. The total funds raised in the region of £10,000 including the funds raised on the day, will go towards funding two solar villages and IT classrooms in rural sites in Anuradhapura and Batticaloa, Sri Lanka, to provide solar power solutions and sustainable development. The funding page will remain open through to the end of November: https://solarvillagesdg.enthuse.com/cf/oxford-city-walkabout-2025 . Solar Village SDG anticipates the full fundraising targets to be met over the course of the coming year.

In Anuradhapura, they will support a primary school. By installing a solar panel roof at the school, a Village Development Committee will ensure much needed work is carried out. They also hope to install a smart room to support education through IT once further funds are realised.

In Batticaloa, they hope to support a community in Navat Kulam struggling without clean running drinking water, or sanitation. Solar Village SDG aims to provide solar water pumping, desalination and drip irrigation systems to support cultivation. In time, they hope to support the community with water filtration mechanisms with support from the local authorities.

Solar Village SDG’s goals align with 14 of the UN’s 17 Sustainable Development Goals (SDGs), demonstrating the company’s innovative approach to integrating poverty reduction in rural populations with climate action and education. In supporting rural communities and remote schools in Sri Lanka, they will support education, cottage gardens, a clean environment, and the empowerment of the entire community notably female-led households where the need is greatest.

The fundraiser proved to be an immense success. This success is also dependent on the outstanding team of individuals who planned, attended, and supported these efforts.

Several performers illuminated the post-walkathon celebration, including Mrs. Athis Vadivale with a Bharatanatyam performance, Ms. Eresha Jayatilake singing covers of Yohani and the Beatles, Miss Ushara Dilrukshan with covers of Sade, Mr. Kris Dilrukshan performing covers of Bruce Springsteen, and the mother-daughter duo, Mrs. Chamari and Miss Sonali Samarasinghe, with a beautiful fusion of Sinhala and Bollywood dance. Alongside these performances were exhibiting Sri Lankan artists, including Lilani Dilrukshan, Nadee Ranasinghe, and Leilani Jeevaratnam. Ms. Dilrukshan also managed the performances and art sale.

The event was also fortunate to be graced by the presence of Mr. Sameera Dayasekara, Counsel who represented the Sri Lanka High Commission.

Moreover, The Coconut Tree, one of the top Sri Lankan Cuisine Restaurateurs based in Oxford (and other major UK cities) very generously donated a delicious Sri Lankan lunch for all walkathon attendees, allowing an international audience to enjoy a popular Sri Lankan meal.

While speaking and learning about the important issues facing rural Sri Lanka the participants enjoyed a tremendously enjoyable day out.

Solar Village SDG’s own members contributed extensively to this wonderful event. Cheryl and Katsuyori Yamamoto, Kamani and Ravi Hewagama, Marisa Rawlins, Emma Kokuhennedege and Priyanga Nugegodage to name but a few. Kshamara Fernando an Aberdeen University student in Scotland contributed to the preparation of a magnificent post-event souvenir alongside Solar Village SDG’s CEO Nilmini Roelens and this is available here. Further, Nilmini and Cambridge University student/American national Rashmi Raveendran worked hard collaboratively together to create a fabulous “A year in review” video to summarise the work and accomplishments from Solar Village SDG’s first year which is available here.

Of special note is the contribution of Canada based engineer and Master’s student Devni Jayasekara who set up and managed the fundraising platform Enthuse and without whose highly valuable IT skills the fundraising could not have been facilitated. University student leadership support in the UK from Evelyn and Neo was helpful in securing engagement.

One planet Abingdon and Abingdon Carbon Cutters, two Oxfordshire based climate action groups, provided extremely valuable fundraising support to this international mix of fundraisers. The top individual fundraiser spots for Oxford City Walkabout, went to Saliya and Sandya Samaranayake, Ravi and Kamani Hewagama, the pioneer of the Solar Village concept and Chair of Solar Village SDG cic, Emeritus Professor I M Dharmadasa as well as Lilani Dilrukshan, Eleanor Dangerfield and Fatima Aftab.

The truly international flavour of this worthy endeavour was sealed in when St Paul’s Milagiriya “Evergreens” Catheeja Ismail in Maryland, USA and Tung Chi Ching (“Tunchi”) based in Sydney, Australia took the excellent initiative to organise their very own sponsored “relay walk” locally in their own adoptive countries, contributing valuably to the Solar Village SDG’s Oxford City Walkabout fundraising.

Solar Village SDG CIC’s directors Professor IM Dharmadasa, Ms Nilmini Roelens and Mr Saroj Pathirana are extremely grateful for this outstanding support, and a Sri Lanka based team of experienced volunteers will now seek to implement the projects progressively in the coming months.

By Nilmini Roelens and Rashmi Raveendran

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Sri Lanka and Latvia sign agreement on transfer of sentenced persons

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Latvian Ambassador Juris Bone shaking hands with Sri Lankan HC Mahishini Colonne

Deepening bilateral cooperation between Sri Lanka and Latvia in the field of consular and legal affairs, the Agreement on the Transfer of Sentenced Persons between the two countries has been signed on 11 November, 2025, at the High Commission of Sri Lanka in New Delhi.

The text of the statement issued by Sri Lanka HC in New Delhi: “The Agreement was signed on behalf of the Government of Latvia by Ambassador of Latvia to India, Juris Bone, who is also concurrently accredited to Sri Lanka, and on behalf of the Government of Sri Lanka by High Commissioner of Sri Lanka to India, Mahishini Colonne.

The Agreement facilitates the transfer of sentenced persons between Sri Lanka and Latvia in accordance with each other’s national laws and regulations enabling individuals to serve their imposed sentences in their home countries. Guided by the principles of humanity and respect for human rights, the Agreement represents an important bilateral instrument promoting mutual legal collaboration and the social rehabilitation of sentenced persons while upholding humanitarian considerations.

The Ministry of Justice and National Integration of Sri Lanka will serve as the central authority for implementing the Agreement in Sri Lanka, while the Ministry of Justice of Latvia will act as the corresponding authority in Latvia.”

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