June 30, Colombo (LNW): The cost of printed books in Sri Lanka has surged by approximately 20 per cent, prompting alarm among industry stakeholders who warn that the tax-driven price hike could deal a serious blow to the country’s publishing and literary sectors.
Speaking at the anniversary gathering of the National Book Traders Association, Samantha Indeewara, President of the Sri Lanka Book Publishers’ Association, drew attention to the recent introduction of Value Added Tax (VAT) and Nation Building Tax (NBT) on printed publications.
He noted that the shift marks a dramatic departure from previous tax policy, where printed books had been exempt from VAT.
According to Indeewara, confusion has arisen over the application of taxes to different product categories, particularly with officials failing to distinguish between stationery and books. “There has been a misunderstanding. Stationery already carried a small VAT component—around 3 per cent—but printed books were taxed at zero. That has now jumped to 18 percent, a significant and sudden increase,” he explained.
The revised tax policy, introduced in January 2024, has drawn sharp criticism from within the industry, with many fearing long-term damage to reading culture and educational accessibility. Indeewara also revealed that the industry had received correspondence from the Presidential Secretariat around a month ago, indicating that an internal review of VAT implications was underway, though no definitive outcome has been communicated.
Gamini Moragoda, Patron of the National Book Traders Association, also voiced concern, describing the new tax framework as unprecedented and detrimental. “We are now seeing a tax imposed on books that is unlike anything found in most parts of the world. This is a policy reversal not seen in 75 years, and its consequences will be felt most acutely by students and families. If this persists, books will soon be out of reach for the average child,” he stated.
Industry leaders are calling on policymakers to re-examine the decision urgently, warning that continued taxation on books could lead to a decline in literacy, further strain on publishers, and reduced access to learning materials for future generations.
