By: Staff Writer

April 27, Colombo (LNW): EML Consultants PLC, the premier consultancy firm in Sri Lanka, has received two extremely sought-after top-tier ISO certifications—ISO 14001:2015 for the Environmental Management System and ISO 9001:2015 for the Quality Management System.

The certification is for conforming to international best practice in environmental sustainability and quality management

As the very first and only consultancy firm in Sri Lanka to be listed in the Sri Lanka Stock Market, this feat further consolidates EML’s status as a leader in consulting in the industry.

Established in 1993 as EML Consultants (Pvt) Ltd, the company was initially involved in technical and management consultancy services in natural resource and environmental management.

EML has, over time, diversified its portfolio and become a major stakeholder in a variety of sectors.

The company now works on a broad spectrum of services that span social and economic development, disaster management, climate change, biodiversity, water supply, wastewater, coastal engineering, urban development, and renewable energy.

This multi-disciplined skill base allows EML to undertake difficult projects in a broad spectrum of industries. The firm has conducted more than 600 consultancy assignments, including EIAs, feasibility studies, master plans, and strategic plans, since the firm was established.

In the past decade, the firm has conducted nearly 80 environmental audits and more than 25 social surveys of large-scale development projects, with ensuing projects both locally and internationally.

EML’s clientele includes both public and private sector organizations, as well as foreign companies and international donor agencies. The firm’s in-house staff consists of more than 20 professionals and 20 support staff.

Besides this, EML has a robust panel of more than 100 external experts with access to more than 200 external experts in various disciplines, thereby enabling it to provide customized requirements for every project.

EML’s new ISO certifications will enable it to continue to innovate the delivery of its services, with its projects continuing to lead the way in environmental sustainability and quality.

 While ISO 14001:2015 deals with the environmental care commitment of the company, ISO 9001:2015 guarantees consultancy services that comply with the best quality management standards.

Looking Ahead

Managing Director of EML Consultants PLC, Avanthi Jayatilake, elaborated in detail regarding their perspective on this record milestone: “Achieving this record illustrates our strong commitment to quality management and environmental responsibility’.

“ISO certifications also enhance our ability to offer quality consultancy services, both locally and internationally, and offer a guarantee to customers that projects undertaken by us are not only of quality but also sustainability”.

These ISO certifications place EML in an improved position to extend its international reach even more, meeting the increasing demands of its customers with utmost professionalism, sustainability, and quality.

As the leading consultancy company in Sri Lanka, EML continues to dedicate itself to providing solutions toward national development projects and global sustainability endeavors.

This feat redefines the standard of the Sri Lankan consultancy sector, and EML Consultants PLC becomes a pioneering company committed to environmental excellence and quality delivery of services.

By: Staff Writer

April 27, Colombo (LNW): Ceylon Capital Management (CCM), chaired by entrepreneur Amila Mahesh Basnayaka, has strengthened its position in Sri Lanka’s investment landscape with a major acquisition of 23 million shares in Browns Investments PLC (BIL).

In a series of strategic purchases over recent trading sessions, Basnayaka acquired an additional 19 million shares at prices between Rs. 6.80 and Rs. 7.30 per share.

This investment, totaling around Rs. 134 million, elevates CCM’s overall stake to 0.17% of Browns Investments, positioning the firm among BIL’s top 15 shareholders.

The move underscores Basnayaka’s long-term confidence in Browns’ growth potential and value proposition.

Browns Investments, a dynamic arm of the LOLC Group, plays a leading role in sectors critical to Sri Lanka’s economy.

 Its diverse portfolio covers plantations, agriculture, leisure and travel, construction, manufacturing, and real estate.

Through a strategy of strengthening its core assets and executing calculated acquisitions, Browns continues to expand LOLC Group’s footprint across these vital industries.

Notably, Browns Investments holds a major stake in Hatton National Bank, aligning itself with leading financial institutions to support broader economic development and financial inclusion.

The company’s financial performance has been robust. For the nine months ending December 2024, Browns Investments reported a profit of Rs. 47.57 billion—a 117% increase compared to the previous year. Earnings per share rose sharply by 116% to Rs. 3.31, while Net Asset Value per share stood at Rs. 12.07, reflecting strong underlying fundamentals.

Browns’ operations span several key sectors. In leisure and travel, it manages Eden Hotel Lanka PLC, Dolphin Hotels PLC, Hotel Sigiriya PLC, and Excel World. In agriculture, it oversees Hapugastenne Plantations PLC, Udapussellawa Plantations PLC, Browns Plantations Kenya, and the strategic acquisition of the iconic Lipton brand. In engineering and construction, Browns is involved in projects like The Colombo Marina at Colombo Port City, Browns Metal and Sands, and Sierra Cables.

Basnayaka’s journey with Browns Investments began in 2019 when he started building his shareholding personally. Over six years, this methodical approach has evolved into a significant institutional presence through CCM.Beyond equities, CCM has diversified into several high-growth sectors. Under Basnayaka’s leadership, the firm has expanded into luxury wellness tourism with Wellness Ceylon Global Ltd., traditional healing with Seth Siri Arana Global Ltd., curated travel through Unithinc International Ltd., automotive solutions via CBN Group Ltd., and sustainable real estate development with Total Trust Global Ltd. Each venture supports a cohesive long-term vision of sustainable value creation across industries and borders, according to Basnayaka.

By: Staff Writer

April 27, Colombo (LNW): The Inland Revenue Department (IRD) is facing a critical challenge in broadening its taxpayer base, as it works toward an ambitious revenue target of Rs. 2,195 billion for the year 2025.

Despite having issued Taxpayer Identification Numbers (TINs) to nearly 10 million individuals, the IRD estimates that only around 1.7 to 1.8 million of these are adults aged 18 years and older.

This leaves a staggering gap of approximately 7 million eligible individuals who remain outside the formal tax system.

Addressing the media, Deputy Commissioner General B.K.S. Shantha admitted that significant gaps persist, even after the introduction of a law in May 2023 mandating all adults over 18 to register for a TIN.

“We have made commendable progress, but there is a long road ahead. Capturing these missing millions into the tax system is essential not just for legal compliance but also for ensuring long-term fiscal stability,” Shantha stressed.

The Government’s move to make TIN registration compulsory was aimed at linking it to a broad array of financial and legal activities—from banking transactions and credit card issuance to property and vehicle registrations.

To facilitate this, the IRD developed an online portal enabling easy TIN registration without the need for physical visits to their offices.

Despite these measures, the IRD continues to encounter hurdles, particularly with low-income earners. Although they are required to register for a TIN, many fall below the taxable income threshold and are often disengaged from the formal tax system.

Exemptions such as the withholding tax (WHT) concession on interest income further complicate the situation. Individuals earning under Rs. 1.8 million per year can claim exemption by submitting a self-declaration form to their banks.

In a bid to bolster revenue, the IRD recently increased the WHT rate from 5% to 10% on interest income. However, Shantha noted that nearly Rs. 60 billion in potential revenue is lost annually due to such concessions.

He highlighted that many eligible individuals either remain unaware of the declaration process or are reluctant to interact with the tax system, particularly those without an existing TIN.

To address this, the IRD has temporarily allowed banks to accept self-declaration forms even from individuals without TINs. The IRD will then process these forms, assign TINs, and inform the respective banks.

Shantha emphasized the seriousness of this initiative, warning that providing false information is a punishable offence under the IRD Act.

Expanding the tax base is critical for Sri Lanka’s economic recovery, especially as the country remains under IMF scrutiny and is still managing the repercussions of the 2022 financial crisis. With fiscal consolidation as a major policy goal, improving tax compliance and collection is not optional—it is vital.

The Deputy Commissioner General concluded by underlining the urgent need for collective participation. Whether individuals ultimately pay taxes or fall under exemptions, being formally registered in the system is essential. “We must build a strong culture of compliance if we are to meet our revenue targets and secure the nation’s financial future,” he said.

Clearly, broadening the taxpayer base and enhancing tax revenue collection are indispensable if Sri Lanka is to achieve its 2025 revenue target and ensure sustainable economic growth.

By: Staff Writer

April 27, Colombo (LNW): The Sri Lankan government has introduced an annual indexation mechanism for excisable goods, including alcoholic beverages, marking a major shift in taxation policy. This move will adjust excise duties under the Excise Ordinance each year, aligning taxes with inflation and broader economic conditions, a senior Finance Ministry official disclosed.

The new policy aims to reflect international best practices, reduce revenue volatility, and curb the growth of the illicit alcohol market. Excise duties on products such as Special Arrack, Coconut Arrack, Locally Manufactured Foreign Liquor, Beer, Wine, and Cider have already been raised by 5.9 percent under this mechanism.

Despite an annual consumption of around 90 million liters of spirits, the government has been battling a surge in illicit alcohol consumption, which now stands at 30–35 million liters per year, according to Excise Department statistics. A significant drop in hard liquor consumption—from 26 million liters in 2022 to 19.31 million liters in 2024—has been attributed to rising prices and ongoing economic hardships, a senior department official noted.

This reduction in legal alcohol consumption has been paralleled by a concerning increase in illicit liquor use, raising public health risks and eroding government revenues. To counter these challenges, authorities have intensified enforcement efforts, leading to a 22 percent rise in legitimate liquor production and a 23 percent boost in excise collections in early 2025. The Excise Department’s heightened vigilance has helped reverse the slowdown seen in 2023 and 2024, focusing on reducing illegal trade and safeguarding fiscal stability.

As part of a broader strategy, the government is also encouraging the introduction of safer, high-quality alcoholic beverages. One proposal involves producing arrack with 25 percent alcohol content in 180ml bottles—the most popular size among Sri Lankan consumers. Furthermore, underutilized molasses spirit from the Pelwatte and Sevanagala distilleries could be used to create these new products, retaining excise revenues and satisfying consumer demand.

Meanwhile, the Committee on Public Finance has reviewed the cigarette tax structure, questioning the current tax calculation methods and their impact on revenue. It was suggested that reducing the number of tax bands could potentially increase revenue, especially since Sri Lanka’s cigarette tax-to-price ratio remains below the global benchmark of 75 percent.

In a parallel move, the government has also introduced indexation of the cess on liquor. Instead of setting fixed cess rates, the cess will now be adjusted periodically, likely using the Colombo Consumer Price Index (CCPI). As inflation remains high following the 2022 economic crisis, indexation is intended to maintain the real value of tax revenues.

However, while indexation is expected to initially boost government revenues as liquor prices rise in line with inflation, there are risks. Continued price hikes could lead to reduced legal alcohol consumption, a shift towards cheaper and illicit products, and potential erosion of revenue over time. 

Additionally, the expansion of the illicit liquor market, disproportionate impacts on lower-income consumers, and the increased need for enforcement could further strain government resources.

The government’s strategy marks a balancing act—protecting revenues in an inflationary environment while trying to curb illicit alcohol consumption and its associated risks.