The Sri Lanka government has announced the revision of the embarkation levy to be paid by passengers who leave the country through an international airport or seaport.
It has issued an Extraordinary Gazette notification announcing new embarkation levies to generate greater revenue for the Treasury at the expense of foreign exchange earnings from tourism and foreign remittances.
The embarkation levies are paid by persons departing from international airports or seaports countrywide.
As per the Gazette notification, any person departing from Bandaranaike International Airport in Katunayake will have to pay an embarkation leave of $ 60.
It also added that a $ 30 embarkation levy will be charged to each person departing from Jaffna International Airport during the period from 12 January to 11 July, while individuals departing from Ratmalana International Airport from 27 March 2022 to 26 March 2023 are also subject to a $ 30 embarkation levy.
However, individuals departing from Mattala Rajapaksa International Airport for two years from the date of the commencement of the operations by the airline are free.
The embarkation levy of $ 60 also applies to persons leaving the country from any other airport not mentioned above and seaports.As per the Gazette, these embarkation tax orders are effective from 12 January.
The Extraordinary Gazette notification has been issued by President Ranil Wickremesinghe in his capacity as the Finance Minister.
Analysts opine that it is extremely unjust to slap more taxes on people who suffer under the pressure of high taxation brought into cover mistakes of politicians.
The remaining one-third of the Embarkation Levy, which was transferred to the Sri Lanka Tourism Development Authority’s tourism promotional fund, was seized by the Treasury via the 2016 Budget, thereby grabbing the entire chunk.
Sri Lanka Tourism Development Authority has reported that in 2019, tourists paid Rs. 2.8 billion as Embarkation Tax, Rs. 4.2 billion to the Central Cultural Fund and Rs. 1.5 billion as Tourism Development Levy.
It was also pointed out that the increase in the Embarkation Levy, coupled with the increase in the tourist visa fees, tax hikes in the hotel and travel agent industries and the blanket value-added tax hikes, will make Sri Lanka more costly as a tourism destination.
New embarkation levies to boost state revenue comes into effect soon
Amaraweera resigns from posts as Minister of Wildlife and Forest Resources Conservation
Mahinda Amaraweera has reportedly decided to resign from his post as the Minister of Wildlife and Forest Resources Conservation.
Amaraweera will continue to serve as the Minister of Agriculture.
MIAP
Local Govt Election contestant assassinated, house set on fire
A local government election contestant was murdered in Minuwangoda.
The victim, a 65-year old resident of Yagodamulla, Minuwangoda and a contestant of the Sri Lanka Freedom Party (SLFP), was subject to a mutilated attack and her house was set on fire.
The killers have escaped the scene after committing the crime and the Minuwangoda Police are conducting investigations into the case.
MIAP
Several ministers to be sworn in today?
Several ministers are set to be sworn in today (19), political sources disclosed.
The move comes in as part of the Cabinet reshuffle which has been dragged in for months due to various circumstances.
MIAP
AG’s Office informs Court it will not appear for ex SIS Chief Nilantha Jayawardena
The Attorney General has informed the Court that he will not appear for former State Intelligence Service (SIS) Chief, Senior Deputy Inspector General (SDIG) of Police Nilantha Jayawardena, who is cited as a respondent to the cases filed demanding compensations for the aggrieved party of the Easter Sunday bomb attacks.
This was when the case was taken up before Colombo District Court yesterday (18).
The prosecution and the defence have filed written speeches before Court in connection with the cases yesterday.
MIAP
SL services see upturn in Dec 22 while, manufacturing continues set back
Sri Lanka’s services sector returned to growth territory in December 2022 with better availability of fuel while a fall in manufacturing slowed, according to a Purchasing Managers’ Index compiled by the central bank.
Manufacturing PMI recorded an index value of 44.8 in December, indicating a continued setback in manufacturing activities. This setback was driven by subdued performance observed in all the sub-indices, except Suppliers’ Delivery Time.
The decline in New Orders and Production was mainly driven by manufacturing of textile & wearing apparel sector. Subdued foreign demand due to seasonal holidays, and economic slowdown experienced in major export destinations was the main reasons for this decline.
Manufacturers mentioned that, although supply-side impediments such as high input cost and shortage of foreign exchange that affected importation of raw materials are yet to be resolved, demand slowdown due to deteriorated purchasing power of the customers was the key issue that restricted them fromincreazing production.
Furthermore, Employment and Stock of Purchases also declined in line with the decline in New Orders and Production. Meanwhile, Suppliers’ Delivery Time lengthened in December 2022 compared to the previous month on a month-on month basis.
Expectations for manufacturing activities for the next three months indicated an improvement in December 2022 anticipating improvements in economic conditions.
In December 2022, Purchasing Managers Indices indicated an expansion in Services activities and a continued setback in manufacturing activities.
Services PMI returned to the growth territory, recording an index value of 51.6 in December 2022 after declining for two consecutive months. This increase was underpinned by the improvements observed in New Businesses, Business Activities and Expectations for Activity sub-sectors.
However, Employment and Backlogs of Work continued to decline during the month.New Businesses improved at a slower pace in December 2022 compared to November 2022, particularly with the increases observed in other personal activities, accommodation, food and beverages, and insurance sub-sectors.
Business Activities in the services sector continued its upward trend in December 2022. In line with the increase in tourist arrivals during the month, business activities related to other personal activities and accommodation, food and beverages sub-sectors showed significant improvements.
Further, insurance, telecommunication and financial services sub-sectors also showed some increases compared to the previous month. Nevertheless, business activities related to the wholesale and retail trade sub-sector deteriorated further during the month amid the continued cost of living challenges and shortages of certain items.
Employment declined in December at a slower pace due to seasonal recruitments, though resignations, migrations and retirements continued during the month. Meanwhile, Backlogs of Work also decreased at a slower pace during the month.
Expectations for Business Activities for the next three months continued to improve with optimism regarding further improvements in economic conditions and with the peak of the tourist season. However, some respondents were concerned about the impact of tax increases on demand conditions.
Veteran Film Producer, Director Sumithra Peiris passes away
Veteran film producer and director Dr. Sumithra Peiris has passed away at the age 88 years this (19) morning.
Wife of late Cinema Giant Dr. Lester James Peiris and cousin to Prime Minister Dinesh Gunawardena, Dr. Sumithra Peiris’ demise was confirmed while undergoing treatment at a private hospital in Colombo.
Peiris is known for producing and/or directing many blockbuster Sri Lankan movies including Ganga Addara, Gehenu Lamai, Yahalu Yeheli, Maya, Sagara Jalaya Madi Henduwa Oba Sandha, Loku Duwa, Duwata Mawaka Misa, Sakman Maluwa and Waishnavi.
MIAP
Strong gusty winds expected over several provinces
Mainly fair weather will prevail over most places in the island, and strong gusty winds of about (40-50) kmph can be expected at times over North-Central, North-western and Uva provinces and in Hambantota district, said the Department of Meteorology in a statement today (19).
| Condition of Rain: |
| Mainly fair weather will prevail over the sea areas around the Island. |
| Winds: |
| Winds will be north-easterly and wind speed will be (25-35) kmph. Wind speed may increase up to (45-55) kmph at times over the sea areas off the coast extending from Trincomalee to Colombo via Kankasanthurai, Mannar and Puttalam and the sea areas off the coast extending from Hambanthota to Pottuvil. |
| State of Sea: |
| Sea areas off the coast extending from Trincomalee to Colombo via Kankasanthurai, Mannar and Puttalam and the sea areas off the coast extending from Hambanthota to Pottuvil will be rough at times. The other sea areas around the island may be slight to moderate. |
MIAP
Investor delegation led by UAE Royalty holds talks on FDI for Port City
A delegation of investors from the United Arab Emirates, led by His Royal Highness Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum, visited Port City Colombo on the 14th of January 2023, during a special visit to Sri Lankato explore investment opportunities, officials said.
Discussions were held between the members of the delegation, representatives from the Colombo Port City Economic Commission (Commission) and Port City Colombo (PCC) with a view to attracting foreign direct investments to the project.
The delegation was given a comprehensive overview of Port City Colombo’s development and plans for the future which the delegation commended, followed by a tour of PCC Marina.
Port City Colombo is a large-scale development project covering an area of 269 hectares of reclaimed land. It aims to serve as a new economic hub for the country, offering a range of commercial and residential opportunities.
The project is expected to bring significant economic benefits to Sri Lanka, including job creation and increased foreign investment.
Expressing his views on the visit and the progress of discussions, Thulci Aluwihare, Deputy Managing Director of CHEC Port City Colombo (Private) Limited said, “We’re very pleased to have had the opportunity to host this delegation, led by His Royal Highness, and showcase the potential of the Port City Colombo development project.
This visit is a clear indication of the growing interest in what we have to offer, and we look forward to welcoming more investors and partners in the future. We are also anticipating the PCC Duty-Free Shopping Complex to open on schedule by April 2023.”
The UAE delegation also included Mr. Luke Sellwood – Advisor to His Highness Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum, Mr. Ivan Shkarba – Partner and investor in efiscal. Mr. Ivan also invests with His Highness in other business opportunities.
Having added 2.69 square kilometres to Sri Lanka’s sovereign territory, Port City Colombo is Sri Lanka’s biggest FDI-funded development project.
With infrastructure development slated for completion in Q3 of 2023, of the USD 1.4 Billion committed by the project company, USD 1.2 Billion has already been invested into Port City Colombo.
A further USD 1.5 billion is expected to be invested during the vertical development phase, which is expected to commence as soon as regulations are finalized.
A USD 7-million Duty-Free Shopping Complex, the first of its kind in South Asia and expected to be a magnet for shopping and tourism, will also open its doors at Port City Colombo in April 2023.
Fonterra supports government programme on food security and nutrition
In support of the government’s ‘National Combined Mechanism for Food Security and Nutrition’, Fonterra will provide free milk powder to 70,000 low-income families.
Joining the ‘National Combined Mechanism for Food Security and Nutrition’ programme, set up under the patronage of President Ranil Wickremesinghe, Fonterra Brands Lanka Company has donated milk powder worth Rs174 million to 70,000 low-income families experiencing financial hardships.
The donation was made symbolically at the President’s Office two days ago (17) with the participation of New Zealand High Commissioner Michael Appleton and a group of New Zealand representatives.
Speaking at the occasion, Chairman and Advisor of the Presidential Committee on National Food Security Dr. Suren Batagoda said, “The Vision of the food security programme of the government is to ensure that every citizen has access to nutrition. This initiative is aimed at bridging this gap with the most vulnerable families.”
The milk powder was delivered to the 70,000 vulnerable families across the country, identified by the task force and delivered via the District Secretariats.
President’s Chief of Staff and the Senior Advisor on National Security Mr. Sagala Ratnayake, Vidya Sivaraja – MD, SEA & SA, Consumer & Food Service Global Markets, Judith Swales – CEO, Global Markets, General Shavendra Silva – Chief of Defence Staff and other officials, attended this event.