Samagi Jana Balawegaya (SJB) Member of Parliament Mujibur Rahuman has raised serious concerns in Parliament over an alleged tax evasion racket involving the importation of brand-new BYD electric vehicles to Sri Lanka.

Speaking in Parliament on the 24th, MP Rahuman claimed that there appears to be a suspicious discrepancy in the customs duties charged on brand-new versus used BYD vehicles, specifically the ATTO 3 model.

“These brand-new BYD ATTO 3 vehicles are being declared as having a 100 kW battery capacity, and a duty of only LKR 5.5 million is imposed. But when a used ATTO 3 vehicle is brought in, it is declared with a 150 kW battery and taxed at LKR 10 million,” Rahuman stated.

He pointed out that the official BYD website lists only a 150 kW version for the ATTO 3 model, and no 100 kW variant exists. “So how can a brand-new vehicle be declared as 100 kW and taxed less, while a used one is declared as 150 kW and taxed more? That’s a tax discrepancy of LKR 4.5 million per vehicle,” he added.

Rahuman further questioned whether the main company involved in importing these vehicles has any ties with the government. “Just like the recent scandal with container clearance, is this also being allowed to pass with reduced tax under some special connection?”

The MP urged authorities to investigate whether this was a deliberate misdeclaration aimed at reducing import taxes and whether there was any collusion involved.

Prime Minister Dr. Harini Amarasuriya announced that the Government will establish a National Industrial Planning Think Tank aimed at revitalising the rural economy. The proposed body will provide essential technical, scientific, and advisory support to strengthen businesses across the country.

The Prime Minister made this announcement while attending the 40th Anniversary celebrations of the Regional Development Bank (RDB) at the BMICH on Thursday (25).

As part of the anniversary event, the Prime Minister launched the ‘RDB Quick App’, a new online banking facility, and opened a three-day business product exhibition. A commemorative stamp issued by the Department of Posts to mark the milestone was also officially presented to her.

In her address, Dr. Amarasuriya praised the RDB’s role in empowering small and medium-scale entrepreneurs, particularly in rural areas.

“The hand extended by the Regional Development Bank to small and medium-scale entrepreneurs in uplifting the rural economy is highly commendable,” she said. “The Bank’s engagement with rural communities—offering not just capital but also technical guidance and marketing support—has helped elevate local talent to international standards.”

The Prime Minister also highlighted the significant role of women in the Bank’s operations and customer base, noting that most small and medium-scale enterprises (SMEs) in Sri Lanka are women-led. She emphasized the importance of RDB’s support in empowering these women and called for continued collaboration in realising the Government’s vision of ‘A Prosperous Country, A Beautiful Life’.

Also present at the event were Colombo Mayor Vraie Cally Balthazaar, RDB Chairman D.M.T.S. Kumara, and senior officials from the Bank.

Foreign Affairs and Tourism Minister Vijitha Herath announced yesterday (25) that the Government has decided to waive visa fees for tourists from 40 additional countries, in a major move to boost arrivals and revitalise the tourism industry.

Speaking at the inauguration of the “Hotel Show Colombo 2025” exhibition held at the Bandaranaike International Conference Hall (BMICH), Minister Herath said that the Cabinet of Ministers had approved the decision, and a formal Gazette notification will be issued soon to implement the new visa policy.

“We will allow tourists from forty more countries to enter Sri Lanka without paying a visa fee once the relevant Gazette is published,” he said.

The Minister acknowledged that the Treasury would forego approximately USD 66 million annually in direct revenue from visa fees. However, he underscored that the potential indirect economic gains far outweigh the losses.

“While we may lose that amount directly, we expect to earn much more through increased tourist arrivals and the growth of the tourism industry,” he added.

The Government is aiming to attract more than 2.5 million tourists in 2025 as part of its broader post-crisis economic recovery strategy.

Prime Minister Dr. Harini Amarasuriya assured Parliament yesterday (25) that the Government will not hesitate to take strict action against any individual — including officials currently serving in the Government — found to have played a role in the 2019 Easter Sunday attacks.

Responding to a question raised by SJB MP Chaminda Wijesiri, the Prime Minister stated that action would be taken based on the recommendations provided by the Attorney General, following a thorough review of the Easter Attacks Investigation Commission Report.

“Once the Criminal Investigation Department (CID) concludes its investigations, all those found guilty — regardless of rank or position — will be dealt with under the Penal Code. If any public official currently serving is implicated, they too will face the full force of the law,” she stressed.

Dr. Amarasuriya reiterated the Government’s commitment to a fair and transparent investigation and rejected MP Wijesiri’s claims questioning the impartiality of the probe due to Defence Deputy Minister Aruna Jayasekara’s presence in the Government.

“The presence of any individual in office will not influence the integrity of the investigation,” the Prime Minister affirmed.

Leader of the House and Minister Bimal Ratnayake told Parliament yesterday (25) that there is no requirement for Defence Deputy Minister Aruna Jayasekera to step down in order to ensure impartiality in the ongoing investigation into the 2019 Easter Sunday attacks.

He clarified that the investigation is being carried out by the Ministry of Public Security, not the Ministry of Defence, and therefore there is no conflict necessitating the Deputy Minister’s resignation.

Public Security and Parliamentary Affairs Minister Ananda Wijepala also addressed the House, stating that he had already presented a comprehensive and detailed account to Parliament on the matter.

Minister Ratnayake added that the Public Security Minister is fully entitled to respond to questions raised by the opposition regarding the Easter attacks and the progress of related investigations.

The Implementation Letter on Debt Restructuring between the Governments of Sri Lanka and France was officially signed on Thursday (July 24), marking a key milestone in Sri Lanka’s external debt restructuring process.

This follows the bilateral agreement signed between the two governments on June 16, 2025, pursuant to the Memorandum of Understanding (MoU) with the Office of the Controller of Creditors (OCC) on June 26, 2024, the Ministry of Finance, Planning and Economic Development said in a statement.

As part of the agreement, the Finance Ministry, acting as the authorised representative of the Sri Lankan Government, was tasked with finalising Implementation Letters with key French institutions: the Agence Française de Développement (AFD), Bpifrance Assurance Export, and the Banque de France—who serve as representatives of the French Government in executing the provisions of the bilateral agreement.

Accordingly, the Implementation Letter with AFD was signed at the Finance Ministry premises on July 24, 2025.

President Anura Kumara Dissanayake will undertake a State Visit to the Maldives from July 28 to 30, at the invitation of Maldivian President Mohamed Muizzu.

During the visit, President Dissanayake will hold bilateral discussions with President Muizzu and witness the signing of several Memoranda of Understanding (MoUs) aimed at enhancing cooperation between the two nations.

The visit holds special significance as Sri Lanka and the Maldives mark the 60th anniversary of the establishment of formal diplomatic relations this year.

President Dissanayake is also scheduled to address a business forum and meet with members of the Sri Lankan expatriate community in the Maldives.

He will be accompanied by Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, along with senior government officials.

A total of 25,508 duty-free vehicle permits have been issued to government employees up to the date of Sri Lanka’s vehicle import suspension, Labour Minister and Deputy Minister of Economic Development Dr. Anil Jayantha Fernando told Parliament yesterday (25).

Speaking during a parliamentary session, the Minister clarified that no decision has been taken so far regarding allowing vehicle imports under these existing duty-free permits, which remain suspended under a temporary directive by the Ministry of Finance.

“Government employees have the right to request vehicle imports under the permits already issued. However, imports are currently halted as part of ongoing restrictions,” he said.

According to the data presented by the Minister, only 2,043 duty-free vehicle permits have been issued in 2025. In contrast, higher numbers were recorded in previous years—5,373 permits in 2020, 2,972 in 2021, 3,340 in 2022, 5,718 in 2023, and 6,062 in 2024.

He noted that the largest number of permits was issued under previous governments, not under the current administration.

The International Monetary Fund (IMF) yesterday called on Sri Lanka to expedite the finalisation of agreements with remaining bilateral and commercial creditors, warning that delays could hinder debt sustainability and stall investor confidence.

A visiting IMF mission led by Evan Papageorgiou, Mission Chief for Sri Lanka, concluded a four-day official visit to Colombo on Thursday (25), during which it assessed recent economic developments and progress under the country’s Extended Fund Facility (EFF) programme.

In a statement issued at the end of the visit, the IMF commended the government’s reform efforts, noting that key macroeconomic indicators were showing marked improvement. “The economic reforms implemented by Sri Lankan authorities are bearing fruit, with growth outperforming, inflation progressing to target, external reserves accumulating, and fiscal revenues improving,” the statement said.

Real GDP grew by 4.8% in the first quarter of 2025, while gross international reserves reached US$6 billion by the end of June. Headline inflation remained subdued at -1.1% in Q2, with strong tax revenue performance—particularly from VAT and motor vehicle imports.

However, the IMF cautioned that downside risks are mounting due to global geopolitical tensions, potential trade barriers, and policy uncertainties. “This underscores the critical importance of maintaining reform momentum and rebuilding fiscal space and external buffers,” it noted.

The Fund emphasized the need to operationalise the Public Debt Management Office urgently, alongside implementing robust fiscal measures in the 2026 budget. These include strengthening tax compliance, rationalising exemptions, broadening the tax base, and enforcing prudent public financial management practices.

“Maintaining macroeconomic stability requires sustained efforts to raise fiscal revenues. The upcoming budget must be backed by strong revenue measures and appropriate spending allocations,” the IMF said, adding that protecting vulnerable communities through well-targeted social assistance remains essential.

It also reiterated the need for reforms in public enterprises, procurement, asset management, and energy pricing, while urging faster implementation of laws aligned with international best practices.

On the monetary front, the IMF underscored the importance of Central Bank independence, continued reserve accumulation, exchange rate flexibility, and strengthening of financial sector governance, especially the oversight of state-owned banks and resolution of non-performing loans.

The IMF also stressed governance and anti-corruption reforms, along with structural measures to liberalise trade and investment, boost female labour force participation, and address climate vulnerabilities.

The Fifth Review of Sri Lanka’s EFF-supported programme will formally assess progress on key commitments, with its timing to be decided in consultation with the government.

During the visit, the IMF team met with President and Finance Minister Anura Kumara Dissanayake, Labour Minister Prof. Anil Jayantha Fernando, Central Bank Governor Dr. P. Nandalal Weerasinghe, Treasury Secretary Dr. Harshana Suriyapperuma, and other senior government and Central Bank officials. The delegation also held discussions with private sector representatives, civil society groups, and development partners.