By: Staff Writer

Colombo (LNW): The Government is ready to reconsider the the inclusion of 97 out of the 138 items slated for the application of Value-Added Tax (VAT) starting January 1, 2024, State Finance Minister Ranjith Siyambalapitiya said.

Siyambalapitiya made this statement recently on the eve of the presentation of the VAT amendment bill in parliament on December 10 aimed at increasing the rate to 18 percent from the present 15 percent marking the highest level in two decades.

The current economic landscape, characterized by escalating income taxes, elevated electricity tariffs, and rise in fuel prices, suggests that an additional VAT increment will further strain consumers’ purchasing power, Ceylon Chamber of Commerce highlighted.

As consumer spending plays a pivotal role in our GDP growth, there’s a significant risk that this tax increase could lead to a further decline in consumption.

.It is likely to hit the spending on consumption of the people, wage earners in particular who have already taken loans, leases and housing loans from bank and finance companies.

The Government is to raise more that Rs.600 billion equivalent to 2.1 of GDP from the 18 percent VAT hike catching petrol diesel and fertiliser which were not liable for this tax earlier in to this tax net, they revealed.

Accordingly an additional sum of over Rs 30,000 will have to be spent by a person per year due to this indirect tax revision, chairman of the parliamentary ways and means committee Patalee Champika Ranawake disclosed.

Several officials of the Ministry of Finance stated that agricultural machinery and other equipment including chemical fertiliser which was listed as exempted previously will be VAT liable under the Vat amendment bill.

They added that that agricultural seeds, agricultural plants, shrimp feed inclusive of prawn feed and animal feed excluding poultry feed will however be exempted from VAT.

Furthermore, dairy products such as liquid milk and eggs will also be liable for the VAT. However, the Ministry of Finance stated that wheat, wheat flour or powdered milk, pharmaceutical products, drugs will be exempted.

Minster Siyambla pitita said the government is prepared to take into consideration the concerns raised by various parties with regard to the proposed removal of VAT exemptions.

He claimed that the government expects to generate an income of Rs.378 billion through the revision of the list of goods exempt from VAT.

The agricultural seeds, agricultural plants, shrimp feed inclusive of prawn feed and animal feed excluding poultry feed will however be exempted from VAT.

Furthermore, dairy products such as liquid milk and eggs will also be liable for the VAT. However, the Ministry of Finance stated that wheat, wheat flour or powdered milk, pharmaceutical products, drugs will be exempted.

By: Staff Writer

Colombo (LNW):The Thirty-seventh Session of the Regional Conference for Asia and the Pacific (APRC) will be held as a high-level Ministerial in-person event in Colombo, Sri Lanka from 19 – 22 February 2024.

It will be preceded by the Senior Officers Meeting (SOM) to be held virtually from 31 January to 2 February, 2024.

The state of food and agriculture in the region; agrifood systems transformation; and solutions particularly for smallholders and family farmers will be discussed at the conference..

FAO is a specialized agency of the United Nations that leads international efforts to defeat hunger and improve food security and nutrition.

The Asia Pacific Regional Conference will enable ministers of agriculture and high officials from 46 member countries across the Asia Pacific region to discuss challenges and priorities related to food and agriculture and promoting regional coherence.

The Ministerial session planned for 19th to 22nd February 2024 will be preceded by a Senior Officers’ Meeting (SOM) to be held virtually from 31st January to 2nd February 2024.

The SOM will be chaired by Janaka Dharmakeerthi, Secretary, Ministry of Agriculture and Plantation Industries. The report of the SOM will be presented at the Ministerial session for adoption.

Minister Mahinda Amaraweera and Vimlendra Sharan, FAO Representative for Sri Lanka and the Maldives, held a joint media conference on 8th December 2023 regarding the upcoming conference.

Speaking at the media conference, Mahinda Amaraweera stated, “The 37th APRC will provide a vital platform for regional collaboration, benefitting the agricultural landscape, the fisheries sector and environment of Sri Lanka, as well as participating member countries.”

Vimlendra Sharan stated, “FAO has supported the country in the implementation of Good Agricultural Practices (GAP), and the development of the fisheries sector for growth and climate resilience. The APRC conference will be an opportunity to highlight the innovative approaches introduced in partnership with the government.”

By hosting the 37th APRC, Sri Lanka demonstrates the country’s dedication to the growth of sustainable agriculture, not just at home but across the region, and showcases its commitment to being partners in sustainable agricultural development.

The APRC agenda will include a forum on agritourism, especially requested by the Sri Lankan government.

This forum will give high-level delegates arriving in the island from across the Asia Pacific region the opportunity to recognize Sri Lanka’s viability as an agritourism destination, further developing the nation’s agritourism sector and bringing in valuable foreign exchange.
The 37th APRC presents a valuable opportunity for Sri Lanka.

By: Staff Writer

Colombo (LNW): The Asian Development Bank (ADB) has approved the eligibility of Sri Lanka to access concessional financing.

The availability of concessional assistance, offered at low interest rates, broadens Sri Lanka’s options to bridge its urgent development financing needs to restore economic stability and deliver essential services, particularly to the poor and vulnerable.

Eligibility for concessional resources among the developing member countries of ADB is based on gross national income per capita and creditworthiness.

ADB’s decision was considered based on a request from the Government of Sri Lanka in view of the severe and unprecedented economic crisis that has reversed hard-won development gains.

The Asian Development Bank (ADB) has sanctioned a US$ 200 million concessional loan for Sri Lanka to help stabilize the country’s finance sector following the sovereign debt and economic crises that started in April 2022 after it suspended its external debt payments.

The Financial Sector Stability and Reforms Program comprises two subprograms of USD 200 million each.

In a statement, the ADB said subprogram targets short-term stabilization and crisis management measures that were implemented in 2023, while subprogram 2 is planned to be implemented in 2024 and focuses on structural reforms and long-term actions to restore growth in the banking sector.

The program will help strengthen the stability and governance of the country’s banking sector; improve the banking sector’s asset quality; and deepen sustainable and inclusive finance, particularly for women-led micro, small, and medium-sized enterprises.

According to the International Monetary Fund’s (IMF) latest review, Sri Lanka’s economy is showing tentative signs of stabilization, although a full economic recovery is not yet assured, the statement reads.

“The program’s overarching development objective is fully aligned with the country’s strategy of maintaining finance sector stability, while ensuring that banks are well-positioned for eventual recovery,” said ADB Country Director for Sri Lanka Takafumi Kadono.

“The expected development outcome is a stable financial system providing access to affordable finance for businesses in various sectors of the economy.”

The program is a follow-on assistance from ADB’s crisis response under the special policy-based loan that was approved for Sri Lanka in May 2023. It is aligned with the fourth pillar of the IMF’s Extended Fund Facility provided to Sri Lanka to help the country regain financial stability.

The program is also in line with the government’s reform agenda, including strengthening the operational independence of the Central Bank of Sri Lanka (CBSL) and its designation as the country’s macroprudential authority.

In designing this subprogram 1 loan, ADB has maintained close coordination and collaboration with the IMF to design targeted regulatory reforms for the banking sector—including the asset quality review—and with the World Bank on strengthening the deposit insurance scheme.

The loan is accompanied by a US$ 1 million grant from ADB’s Technical Assistance Special Fund to provide advisory, knowledge, and institutional capacity building for Sri Lanka’s Ministry of Finance and CBSL.

By: Staff Writer

Colombo (LNW): SriLankan Airlines has introduced double daily flights between Colombo and Mumbai, multiplying the convenience for passengers travelling to and from India’s financial and entertainment capital.

The new double daily service to Mumbai will not only give a 50% boost to SriLankan’s capacity on its Mumbai route, but will also strengthen the airline’s already vast network in India.

Flights UL 142 and UL 144 will depart daily from Mumbai to Colombo at 3:10hrs and 20:45hrs, respectively.

Flights UL 141 and UL 143 from Colombo to Mumbai will depart at 23:45hrs and 17:10hrs, respectively.

Passengers travelling out of Mumbai on SriLankan Airlines will now have the advantage of more flight options to Colombo and convenient connections via Colombo to popular destinations in the Far East, Europe and Australia including Singapore, Kuala Lumpur, Bangkok, London, Frankfurt, Paris, Melbourne and Sydney.

Worldwide Sales and Distribution Head Dimuthu Tennakoon said: “The Indian market has been incredibly important to SriLankan Airlines since the get-go, and with India fast becoming one of the world’s largest outbound travel markets, we are only happy to expand our operations in one of India’s most celebrated cities and make travel between Mumbai and Colombo extra seamless.

Our frequency increase comes on the heels of Sri Lanka announcing free visa for Indian visitors and we hope that these positive developments will encourage more travellers from Mumbai to stop by Sri Lanka.”

India is the only country with nine cities featured in SriLankan Airlines’ network. This includes Delhi, Bangalore, Hyderabad, Kochi, Trivandrum, Chennai, Trichy and Madurai in addition to Mumbai, to which altogether SriLankan operates close to 100 flights every week.

Given the geographic and cultural proximity of the two countries, most Indians are likely to find a welcoming familiarity in Sri Lanka not found elsewhere, and SriLankan Airlines is the best bet for Indians who want to experience the best of both worlds onboard.

Customers will be able to savour mouth-watering Indian vegetarian and non-vegetarian cuisine while enjoying the warmth and friendliness that embody the essence of Sri Lanka and its national carrier.

SriLankan Airlines’ outstanding service in the region was recently recognised at the South Asian Travel Awards (SATA) in Bangalore, India, where the airline was crowned the Leading International Airline – South Asia and Leading Airline Class – Business Class.