Chinese Ambassador Qi Zhenhong made a rare public appearance on June 24, visiting Angulugaha Maha Vidyalaya in Galle alongside Sarvajana Balaya leader and MP Dilith Jayaweera. The visit, which included the Ambassador’s wife and a donation programme funded by the Chinese Embassy, surprised political circles in Colombo given the Ambassador’s limited public engagements in recent months.

The school holds deep personal significance for Jayaweera, it is where his mother, Dharma Jayaweera, taught for 30 years. Ambassador Qi made an emotional tribute to the school and offered glowing praise for Jayaweera. Speaking at the event, Qi reaffirmed the longstanding friendship between Sri Lanka and China, while Jayaweera thanked China for its consistent support.

The visit comes amid strong political rumours that the Anura Kumara Dissanayake administration is pursuing legal action against Jayaweera. The Securities and Exchange Commission, under Chairman Prof. Hareendra Dissabandara, has reopened an over decade-old case involving an alleged stock market pump-and-dump scheme against Jayaweera. His statement was recorded on May 12, and investigations focus on alleged irregularities at the Colombo Stock Exchange between 2010 and 2015. A separate CID investigation into six individuals, including Jayaweera, on contempt of court allegations is scheduled for a progress report on July 1.

Inside sources indicate Jayaweera’s lawyers are preparing a strong defence based on statute of limitations and evidence, and his legal team preparing to question the SEC Chairman’s integrity and selective bias.

In recent weeks growing public discourse has questioned the SEC’ Chairman’s conduct, particularly regarding the Rs. 13.2 billion NDB Bank fraud and the JXG IPO.

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While the Government presents Sri Lanka’s proposed VAT reforms as a necessary step toward fiscal sustainability, many lawmakers and business operators fear the changes could impose significant compliance costs on smaller enterprises already navigating a difficult economic environment.

The proposed reduction of the VAT registration threshold from Rs. 60 million to Rs. 36 million annually is expected to capture thousands of businesses previously outside the tax net. Retail stores, salons, laundries, and other medium-sized enterprises are among those likely to be affected.

During deliberations before the Committee on Public Finance (CoPF), concerns centred not on taxation alone but on the practical demands of compliance. Under the proposed framework, newly registered VAT entities would be required to implement approved record-keeping systems, including Point of Sale (POS) terminals, within three months of the legislation taking effect.

Committee Chair Dr. Harsha de Silva questioned whether such a timeline was realistic. Legislators highlighted that POS systems can cost around Rs. 200,000, excluding additional expenses related to accounting services, software maintenance, staff training, and administrative reporting. For businesses operating on narrow profit margins, these costs could represent a substantial burden.

Some committee members argued that an extended transition period of up to 18 months may be necessary to avoid placing undue strain on enterprises adjusting to the new regulatory environment. Treasury and IRD officials, however, maintained that businesses would have multiple compliance options. Apart from POS systems, firms could use Enterprise Resource Planning (ERP) platforms or manual record-keeping methods integrated through the Revenue Administration Management Information System (RAMIS).

Officials further noted that businesses with similar turnover levels had successfully complied with VAT obligations in previous years when registration thresholds were considerably lower. This, they argued, demonstrates that compliance is achievable with proper preparation and support.

Beyond implementation costs, lawmakers also raised concerns about fairness within the tax system. Questions emerged regarding mixed businesses that sell both VAT-liable and exempt goods, as well as products subject to price controls. Authorities responded that eligible businesses would be able to claim input tax credits, including deemed credits on existing inventory through self-assessment mechanisms.

Another contentious issue involved perceived gaps in tax enforcement. Several MPs questioned why sectors such as online gambling and betting appeared to operate with less scrutiny while traditional businesses faced expanding compliance requirements. Treasury officials countered that broader reforms are underway, including new provisions targeting overseas digital service providers and online marketplaces whose services are consumed in Sri Lanka.

The debate highlights a central challenge facing policymakers. While few dispute the need for stronger revenue collection, concerns persist over whether implementation mechanisms are adequately designed to protect smaller businesses from excessive costs. The success of the VAT overhaul may ultimately depend not on the policy itself, but on how effectively authorities manage its transition and enforcement across a diverse and evolving economy.

Sri Lanka has stepped into implement Green Hydrogen and Ammonia projects, with the Board of Investment (BOI) inviting Requests for Information (RFI) ended June 5, 2026.

The government has given priority to these projects for export and energy storage, targeting 70 percent renewable energy by 2030.

The Ministry of Energy and Board of Investment (BOI) Sri Lanka are accepting information for green hydrogen/ammonia project development.

 The feasibility studies with partners like Greenstat Hydrogen have evolved into concrete plans for Green Mobility pilots and the establishment of a Center of Excellence for Hydrogen at the University of Peradeniya (MoU signed March 2025).

A “National Policy on Renewable Hydrogen in Sri Lanka” is in place, drafted by the Ministry of Energy with Sri Lanka Sustainable Energy Authority (SLSEA), and UNDP to govern production, storage, and export, a senior official of the BOI told the Sunday Times Biasness.

A project to produce green hydrogen using off-peak renewable energy is planned to utilise excess energy according to  Budget 2026 Initiative:,

 Government plans to develop “green hydrogen hubs” to harness high renewable energy capacity for future energy exports

.Projects aim to use surplus solar and wind power, strengthening energy security and enabling decarbonisation.The initiatives are supported by research, to build a safe, robust hydrogen ecosystem

The RFI submission process is open electronically via [email protected] or physically at the BOI, Level 19, West Tower, World Trade Center, Colombo 01, until June 5, 2026.

Lanka views green hydrogen as the critical enabler of renewable integration and sustainable energy storage.

The National Policy on Renewable Hydrogen in Sri Lanka, finalised by the Ministry of Energy, SLSEA, and UNDP, aims to establish the country as a green hydrogen economy by focusing on solar/wind-driven production, storage, and export via green ammonia and methanol, energy ministry report revealed. .

A plan that would see a total of 30 GW electrolyser capacity reached by 2048 in order to reach carbon neutrality is being made with adequate regulation in place for safety measures and investment purposes.

Renewable Hydrogen or Green Hydrogen is the type of hydrogen generated through renewable energy sources.

National Hydrogen Roadmap was established in 2023, and the implementation of which has been successful ever since May 2026.

 In contrast with the strategic roadmaps which the government had put forward in the past, it has now turned towards making concrete regulatory steps and investment.

From August 2025 onwards, the Sri Lanka Sustainable Energy Authority (SLSEA) has started the preparation of regulation related to health and safety as well as infrastructure development of hydrogen production.

NPP government has gone away from developing roadmaps to regulate and invest massively.

The Sri Lanka Sustainable Energy Authority (SLSEA) is now drafting health, safety, and infrastructure regulations, with the aim of finalising all legalities by the time first project begins.

The arrest of an alleged mastermind behind a massive money laundering operation has exposed a complex underground financial network that investigators believe transferred more than Rs. 210 billion, equivalent to over US$700 million, out of Sri Lanka through fraudulent import transactions.

Authorities allege that the operation functioned under the guise of legitimate trade, allowing businesses and criminal actors to move large sums overseas while avoiding regulatory scrutiny. The suspect, identified by investigators as the director of a Colombo-based company, is accused of facilitating illegal remittances for multiple clients through an elaborate financial arrangement that operated for several years.

Beyond its criminal dimensions, the case highlights the profound economic consequences of illicit capital flight. When foreign currency leaves the country outside legitimate trade channels, the impact extends far beyond individual transactions. Such outflows reduce the availability of dollars within the domestic financial system, weakening the country’s reserve position and limiting the Central Bank’s ability to manage exchange rate stability.

Sri Lanka’s economy remains heavily dependent on foreign exchange earnings from exports, tourism, and remittances. Large-scale unauthorized transfers can undermine these inflows by diverting valuable currency resources away from the formal banking system. This contributes to shortages that can affect import financing and increase pressure on the exchange rate.

Investigators believe the network may also have deprived the government of substantial tax and customs revenue. By disguising transactions as import-related payments while avoiding legitimate declarations, participants may have bypassed duties, taxes, and regulatory requirements. Such losses reduce government revenue available for public services and infrastructure development.

The investigation gained momentum after links reportedly emerged between the remittance network and organized criminal elements. Authorities suspect the system may have been used to move proceeds generated through narcotics-related activities and other illicit enterprises. If proven, this would indicate a convergence between financial crime and organized criminal operations capable of exploiting weaknesses in banking and regulatory systems.

Evidence gathered so far suggests that bank accounts belonging to dozens of economically vulnerable individuals were allegedly used to facilitate transactions. Investigators are also examining whether insiders within financial institutions assisted in processing or concealing suspicious activities.

The broader lesson from the case is that financial crimes are not victimless offenses. Illegal foreign currency transfers can weaken reserves, distort exchange markets, erode tax revenues, and damage investor confidence. At a time when Sri Lanka is working to strengthen economic stability and rebuild international credibility, such activities pose a direct threat to national recovery efforts.

The ongoing investigations therefore represent more than a criminal prosecution. They are a test of the country’s ability to protect its financial system, enforce transparency, and ensure that scarce foreign exchange resources remain available to support legitimate economic growth rather than organized illicit networks.