Prime Minister Dr. Harini Amarasuriya called on citizens to take collective responsibility in protecting the environment and ensuring that future generations inherit a sustainable Earth.

Speaking at the inauguration of the “Soba Sipwadula” Project at Colombo Hindu College, Ratmalana, she said tree planting should not be seen as a symbolic act but as a duty to nurture and preserve them for the future.

As part of the launch, the Prime Minister planted a jackfruit sapling while schoolchildren planted 100 saplings within the premises. The programme, carried out under the Clean Sri Lanka initiative by the Sri Lanka Hadabima (Heartland) Authority, will create green zones in 50 schools and was simultaneously rolled out across the other eight provinces.

The Prime Minister underscored the importance of sustainable development, warning against environmental pollution from plastics and toxins.

“Humans destroy the environment, but it is also humans who can protect it. Let us build a society that safeguards our environment,” she said.

The event was attended by Members of Parliament, senior officials, and representatives of the private sector.

The Department of Meteorology announced that atmospheric conditions are becoming favorable for evening thundershowers in most parts of the island.

Showers or thundershowers are expected at several locations across many provinces after 1.00 p.m.

Fairly heavy showers, exceeding 50 mm, are likely at certain places in the Northern, North Central, and Eastern Provinces, the Met. Department added.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

In a landmark policy shift effective today, the Inland Revenue Department (IRD) has scrapped Sri Lanka’s long-standing Simplified Value Added Tax (SVAT) scheme, replacing it with a new risk-based VAT refund system designed to improve efficiency and transparency.

The move is part of  wider tax reforms aligned with IMF-backed fiscal restructuring, but it has triggered serious concerns from the country’s export community over potential cash flow disruptions.

According to the IRD, the new refund mechanism aims to deliver VAT refunds within 45 days of filing, contingent on each taxpayer’s “risk rating.”

Taxpayers will now be categorized as low, medium, or high risk, based on statistical assessment. Low and medium-risk entities will receive refunds without prior verification, while high-risk taxpayers must undergo checks before claims are processed.

The scheme primarily targets exporters and strategic projects, including those under Section 22(7) of the VAT Act, and suppliers to designated Special or Strategic Development Projects, provided these account for at least half their total sales.

The IRD insists the reform will curb fraud, enhance accountability, and make refunds more predictable. Any discrepancies in submissions, however, will suspend the refund timeline until corrections are made a move that could stall liquidity for some firms.

The outgoing SVAT scheme, introduced in 2011, has long been a pillar of Sri Lanka’s export incentive framework, enabling smooth operations by offsetting input tax without upfront payments.

Yet, it has faced criticism for enabling tax evasion and fraud. The IRD points to historical cases including the early 2000s VAT scandal, when fraudulent refund claims cost the Treasury over Rs. 357 million  to justify the overhaul.

Despite these intentions, exporters warn of a looming crisis. At a recent industry briefing, leading associations representing apparel, IT, rubber, and spice sectors warned that without a fully tested refund system, the transition could lock up nearly 8% of export revenue, or about $80 million monthly, severely straining cash flows.

They argue that while reform aligns with global best practices, the lack of administrative readiness could undermine the sector’s $19 billion export goal for 2025.

Tax experts acknowledge the strengths of a risk-based model faster refunds for compliant taxpayers and reduced fraud exposure but caution that its success depends on the IRD’s capacity to manage verification efficiently. Delays or misclassifications could disproportionately penalize exporters, the backbone of Sri Lanka’s foreign exchange earnings.

Ultimately, while the reform reflects a push for modern, transparent taxation, its rollout will test whether Sri Lanka can balance compliance, efficiency, and business confidence in a fragile economic recovery.

Colombo, Oct. 1 – In a landmark step for sustainable finance, DFCC Bank has launched Sri Lanka’s first-ever Blue Bond, a Rs. 3 billion issuance dedicated to protecting marine and coastal resources.

The bond, expected to receive an ‘A(EXP)(lka)’ rating from Fitch Ratings, will fund projects including clean drinking water systems, sustainable fisheries and aquaculture, renewable ocean energy, eco-friendly coastal tourism, wastewater management, clean marine transport, and climate adaptation for coastal communities.

Aligned with the International Capital Market Association’s Green, Social and Sustainability Bond Principles and emerging Blue Bond guidelines, the issuance emphasizes transparency, measurable impact, and clearly defined use of proceeds.

Nearly 30% of Sri Lanka’s population lives in coastal areas, heavily reliant on fisheries, tourism, and maritime trade. DFCC Bank said the Blue Bond reflects a national commitment to safeguarding ecosystems and supporting communities dependent on ocean resources.

The move follows DFCC’s successful launch of Sri Lanka’s first Green Bond in 2024, extending its sustainability journey “from land to sea.”

DFCC CEO Thimal Perera called the issuance a milestone:

“Finance can change the course of a nation – and with this Blue Bond, we are showing it can also change the course of our oceans.”

With this pioneering step, Sri Lanka joins an exclusive group of nations, including Seychelles, Fiji, Ecuador, and Indonesia, that have tapped capital markets to protect marine ecosystems.

Marking its 70th anniversary, DFCC reaffirmed that economic growth and environmental stewardship can go hand in hand, positioning the Blue Bond as a model for integrating sustainability into Sri Lanka’s financial system.

Sri Lanka’s construction sector is showing signs of renewed momentum, as previously stalled projects regain steam and fresh contracts emerge. But amid this rally, the oft-quoted estimate that around 10,000 buildings remain under construction has not been substantiated by reliable public data.

Recent activity indicators suggest the industry is gaining traction. The Purchasing Managers’ Index (PMI) for August reached 61.1, slightly higher than July’s 60.0, signaling continued expansion and marking the strongest reading in over a year.

Rising employment, increased material purchases, and extended delivery times are cited by the PMI survey as evidence of growing site activity and material demand.

But scratching beneath the surface, official sources do not confirm a nationwide tally of 10,000 buildings under construction. The Construction Industry Development Authority (CIDA) maintains a “Bulletin of Construction Statistics,” but the publicly available versions focus largely on cost indices, inputs, and pricing trendsnot counts of active projects.

A January 2025 bulletin, for example, breaks down material, labor, and equipment indices but does not offer an update on the number of active sites.

The only comprehensive construction survey available is from 2019/20, conducted by the Department of Census and Statistics. That study estimated the total value of work done across all construction sectors but did not enumerate active project counts.

While useful for assessing output and contribution to GDP, such historical data aren’t suited to verifying a current project backlog.

Given this absence of official validation, the 10,000-building figure may be a rough estimate, a regional construct (e.g. focused on Colombo or urban zones), or a conflation of permitted, uncompleted, or even planned structures. Without a verified number, narratives of a construction “backlog” rest on uncertain ground.

That ambiguity notwithstanding, the sector’s revival is evident in other metrics. Private building work is regaining momentum, buoyed by record-low interest rates and a softening in construction material prices for example, the consumer price index for September showed easing costs for key inputs.

 Government-driven infrastructure work is also reactivating, though public spending has lagged allocations: of the Rs. 1.3 trillion earmarked for public investment in 2025, less than 25 percent has reportedly been disbursed.

Still, resumption of suspended projects is bolstering confidence. Roadworks and water projects are now more commonly cited among newly advancing initiatives. Firms are reportedly expanding their workforce to meet rising project demands, and the volume of procurement is rising in expectations of sustained growth.

Yet risks linger. If government agencies continue to underperform on releasing funds or executing contracts, much of the pressure will fall onto the private side. Supply chain bottlenecks are also evident: deliveries of raw materials are slowing as demand swells across sites. Any disruption in imports or logistics could choke off the momentum rapidly.

In the end, what’s clear is that Sri Lanka’s construction sector is emerging from a low-activity period. The PMI data and anecdotal revivals hint at meaningful recovery. But the actual scale of active construction remains opaque. Until industry authorities or statistical agencies publish a definitive count of live projects especially buildings the narrative of a 10,000-structure backlog remains speculative rather than certified

Opposition lawmakers are intensifying calls for the public release of the forensic audit into Sri Lanka’s controversial e-visa contracts, even as a new “special audit” is poised to reach the Parliamentary Committee on Public Finance (COPF) within days.

Their renewed demand came in the wake of a Supreme Court judgment on Tuesday, which sentenced former Controller General of Immigration and Emigration Harsha Ilukpitiya to two years’ imprisonment for contempt of court. The court found he had failed to comply with an earlier order to reinstate the old visa system pending final adjudication of petitions challenging the new e-visa scheme.

Despite more than 15 months having passed since the petitions were filed, opposition critics assert the government has yet to submit the forensic audit to the Supreme Court as required.

The lawsuits were lodged by Opposition politicians Patali Champika Ranawaka, M.A. Sumanthiran, and Rauff Hakeem, all of whom served on the COPF at the time the e-visa deal was scrutinised. Ranawaka has emphasised that while the contempt case was concluded on September 23, 2025, the substantive challenge to the e-visa system is still pending. The next hearing is slated for November 23.

At the heart of the dispute lies the stalled forensic audit, the principal recommendation of a 660-page COPF report  which Parliament approved in July of last year, authorising the Auditor General to carry out a full review of the procurement process.

The petitioners themselves have presented preliminary loss calculations to the court. They estimate that Sri Lanka lost Rs 3.71 billion between the introduction of the new system (April 17, 2024) and the issuance of an interim court order, owing to the shift from a US$1 visa-processing charge to one exceeding US$25.

An additional Rs 4 billion, they claim, was lost because the interim order was not enforced and the old system was not reinstated. Support for these figures comes from data showing that the contracted firms (GBS, IVS, and VFS) earned over US$12.6 million (around Rs 3.78 billion) between April and August 2024.

Ranawaka insists that only a forensic audit by the Auditor General can establish an official, court-accepted figure for losses. Without it, he argues, their estimates carry only persuasive weight. “If the audit officially confirms fraud and quantifies the loss, any citizen may file complaints with the police or the Bribery Commission,” he said. He has further alleged that the audit report is being deliberately withheld to obstruct criminal proceedings.

In recent days, however, the government has moved to deflect mounting pressure by announcing a “special audit”distinct from a full forensic auditas the Auditor General reportedly declined to conduct full forensic work. According to Minister of Public Security Ananda Wijepala, this special audit has already been sent to the Immigration Department for review and is expected to be forwarded to the COPF within a week.

With mounting public scrutiny and political pressure, the COPF is expected to notify Parliament of next steps once it receives the audit report.

Meanwhile, in parliament, MP Rauff Hakeem has also called for the forensic report’s formal submission to parliament, pointing to a COPF directive for the Auditor General’s involvement. Hakeem has accused the government of failing to await the forensic audit and said losses could amount to as much as US$3.4 billion.

In sum, opposition parties now face a pivotal moment. They must decide whether to accept the special audit as a compromise or to press ahead in court for the original forensic audit, pushing to unmask the full extent of alleged malfeasance in Sri Lanka’s visa contract process.

Three entities filed a writ application before the Court of Appeal today (01 Oct) challenging the Inland Revenue Department’s decision to abolish the Simplified Value Added Tax (SVAT).

The Inland Revenue Department recently announced that SVAT would be abolished and replaced with the Risk-Based Refund Scheme (RBRS), effective 01 October 2025.

According to the Free Trade Zone Manufacturers’ Association, the petitioners argue that the new policy was introduced without first operationalising the automated refund mechanism mandated by law.

The RBRS scheme is designed to facilitate timely VAT refunds, with refunds to be issued within 45 days depending on the taxpayer’s risk classification. Under the new system, eligible VAT registrants — including exporters, projects, and project suppliers — will be assessed and categorized as low, medium, or high risk, which will determine how refunds are processed.

Refunds will apply to taxable periods commencing on or after 01 October 2025.

A new gazette notification issued by the Minister of Transport, Highways, Ports and Civil Aviation has made it mandatory for drivers and all passengers traveling along expressways to wear seat belts.

According to the regulation, the driver and every passenger occupying a seat in a motor vehicle on an expressway must wear an individual safety seat belt while the vehicle is in motion.

The gazette further stipulates that no vehicle will be permitted to enter or operate on an expressway unless it is fitted with seat belts for the driver and all passengers.

A special discussion was held at the Presidential Secretariat between the Royal Melbourne Institute of Technology (RMIT) and Secretariat officials to raise awareness and facilitate the establishment of an RMIT Innovation Hub in Sri Lanka, the President’s Media Division (PMD) announced.

The meeting was organized in coordination with the National Initiative for Research and Development Commercialization (NIRDC).

According to the PMD, the proposed RMIT Sri Lanka Innovation Hub will:

• Strengthen existing Joint PhD programmes and expand opportunities for collaborative research.
• Address national challenges through R&D solutions aligned with Sri Lanka’s research policies and priorities.
• Foster partnerships between RMIT, local universities, industries, and government institutions.
• Deliver innovative technological solutions to support businesses and commercialize research.
• Provide international access and training opportunities for Sri Lankan scientists, researchers, and students.
• Contribute to the country’s economic, scientific, and technological advancement through new investments and research projects.

The outcomes of this initiative are expected to be shared widely with the public, the PMD added.