Colombo, Oct. 8 – The government’s key objective is to gradually ensure that all teachers become degree holders, Prime Minister and Minister of Education, Higher Education, and Vocational Education Dr. Harini Amarasuriya told Parliament today (8).

Speaking during a parliamentary debate on educational reforms, the Prime Minister noted that teacher training collegeshad not undergone reforms in many years.

“Teacher training colleges have not been reformed in a long time. The lack of attention isn’t just about resources – there hasn’t been enough focus on how they operate either,” she said.

Dr. Amarasuriya emphasized the need to design a new curriculum within this year to align with both current educational needs and proposed reforms, adding that training is already being provided to both trainee teachers and those involved in teacher education.

“The government’s aim is to progressively move toward a system where all teachers are degree holders. We want to elevate the teacher training colleges to a level where they award degrees. Currently, the Kuliyapitiya Teacher Training College already confers degrees, and we plan to bring the remaining 19 training colleges up to that same level,” the Prime Minister said.

Colombo, Oct. 8 – The Department of Examinations has released the re-scrutinized results of the 2024 G.C.E. Ordinary Level Examination.

According to the Department, candidates can now access their updated results via the official websites www.doenets.lk or www.results.exams.gov.lk.

The re-scrutinization process allows students who applied for result verification to view any amendments made following the review.

Showers or thundershowers will occur in most parts of the island after 1.00 p.m.

Showers or thundershowers may occur at several places in Western province and in Galle and Matara districts in the morning too.

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Uva provinces during the morning.

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

By Adolf

The allegations of large-scale tax evasion linked to the import of 1,000 BYD electric vehicles have sent ripples through Sri Lanka’s corporate establishment. Yet, while the charges are serious and warrant full investigation, it is important to maintain perspective before rushing to judgment. John Keells Holdings (JKH) has long stood as a symbol of responsible corporate citizenship, and it deserves the opportunity to respond before being tried in the court of public opinion. According to reports, Sri Lanka Customs has detained the consignment, alleging that the vehicles were under-declared as having 100 kW motors instead of 150 kW—potentially depriving the government of Rs. 3 billion in excise revenue. If proven, the case could represent a significant breach of trust and governance. However, at this stage, it remains an allegation. The public, investors, and policymakers must therefore allow due process to unfold, guided by facts rather than speculation.

Reputation

JKH’s reputation has been built over decades of transparency, compliance, and ethical conduct. The company has operated under intense regulatory and market scrutiny, consistently earning recognition for its governance practices. It is one of the few conglomerates in Sri Lanka that voluntarily adopts international reporting standards and maintains a strong presence of independent directors on its board. These factors suggest that any legitimate concerns will be addressed openly and decisively. That said, there are key questions that merit clear answers. Did JKH disclose full technical details of the vehicles to Sri Lanka Customs prior to importation? Were proper clearances and classifications obtained before shipment? These are critical compliance checkpoints. If the company had sought and received prior approval from the authorities, then the issue may be one of interpretation rather than deception. Conversely, failure to disclose material specifications would be a serious lapse demanding accountability. Transparency on these points is essential to restoring confidence in both the company and the system. It is also important to acknowledge that Sri Lanka’s import and taxation frameworks, particularly for electric vehicles, remain complex and frequently revised. Such uncertainty can lead to inconsistencies or genuine errors in classification. This underlines the broader need for predictable and transparent regulatory frameworks to support sustainable investment and innovation in the green mobility sector. As the investigation proceeds, it is vital that the matter is handled with fairness and professionalism. A rush to condemn one of the country’s leading corporates could have unintended consequences for investor sentiment and the wider perception of Sri Lanka as a stable, rules-based economy.

Conclusion 

John Keells Holdings has, for generations, been a cornerstone of Sri Lanka’s private sector—driving growth, employment, and good governance. Its long record of integrity and compliance cannot be dismissed overnight. Until the facts are fully established, JKH should not lose the confidence of the public. The outcome of this case must reinforce—not weaken—the principles of transparency, accountability, and due process that underpin a healthy corporate environment. If JKH and CG Auto is found guilty the Boards should be given the highest punishment including criminal charges as a lesson to other companies. It is not only politicians who should be jailed . Even white collar criminals

The Sri Lankan dairy industry is at a crossroads. While domestic milk production inches forward, the farmers and milk suppliers who form the backbone of the sector are increasingly squeezed by rising costs, stagnant returns, and structural gaps. An investigative look at the latest data shows that the industry’s fragile progress hides deep distress among those who toil to keep milk on the consumer’s table.

At the recent Fifth Annual General Meeting of the All Island Dairy Association (AIDA), held at the Ceylon Chamber of Commerce, the stark contrasts in the industry were on full display.

AIDA President Asoka Bandara welcomed the government’s decision to remove Value Added Tax (VAT) on fresh milk in the latest budgetbut cautioned that relief for input costs and infrastructure support remain overdue.

The association said it represents dairy collectors and processors, large and medium farms, service providers across the value chain, and importers of equipment and input materials.

The scale of the struggle becomes evident in national production statistics. According to the Department of Census and Statistics, combined cow and buffalo milk production in 2024 was approximately 521.7 million litres, up from around 504 million litres in 2023, yet still far below demand.

Industry sources estimate domestic production still covers only 30–40 percent of national dairy demand. That gap is largely met by powdered milk imports, costing the country billions of rupees annually.

Behind the national aggregates, however, the human story is harsher. Over 105,000 smallholder farmers rear milking cows (under 10 animals), while fewer than 3,000 operate mid-scale (10–50 animals) and just over 2,000 are large farms.

These small farmers dominate the supply chain but often struggle with low yields, limited access to quality feed, and poor bargaining power. The average farmer’s income from milk is frequently eroded by volatile input prices and transport, especially in remote rural regions.

Despite AIDA collecting roughly 65 percent of the country’s formally reported milk, much of that comes from rural smallholders.

Bandara highlighted challenges including disproportionate taxation on investments in larger farms, the need to upgrade small farms toward commercial viability, and chronic shortages of high-quality fodder and concentrate inputs. He also emphasized the necessity of integrated artificial insemination and stronger progeny for Sri Lanka’s low-yield cattle.

Minister of Agriculture K.D. Lalkantha voiced alignment with AIDA’s proposals, promising to explore state land allocation for fodder cultivation and strengthen interventions via the National Livestock Development Board (NLDB). Yet, even with these commitments, the AIDA farms currently meet only 40 percent of fresh milk requirement, according to officials at the AGM.

The revenue side tells a mixed story. One of Sri Lanka’s most visible dairy businesses, Lanka Milk Foods (CWE) PLC, reported revenues of around LKR 9.77 billion in 2022, and net income of LKR 1.06 billion in the same year.

However, because the data is lagged, it offers only a partial snapshot and does not reflect the pressure from rising feed and fuel costs since 2023–25. Meanwhile, the dairy sector has seen only incremental growth in production, constrained by limited structural reforms and underinvestment.

The paradox is clear: Sri Lanka produces more milk each year yet continues to rely heavily on imports; some businesses log modest profit, while many suppliers subsist. The dependency on powdered imports—estimated at a cost of about LKR 63 billion annually—underscores the unfulfilled potential.

Even as AIDA readies an action plan ahead of the national budget, and top officials including NLDB leadership joined the AGM, the question remains whether policy will shift decisively to alleviate the plight of milk suppliers.

 Unless the power to invest in mid-sized farms, feed production, animal breeding, and value-chain subsidies is extended to the smallest producers, the industry’s growth may continue to bypass those who are most essential and most vulnerable.

With Sri Lanka’s long-running Simplified VAT (SVAT) scheme now officially abolished, businesses particularly exporters and project suppliers are being warned to brace for short-term cash flow pressures as the country transitions to a new Risk-Based VAT Refund Scheme, effective from October 1, 2025.

According to KPMG Sri Lanka, the change represents a significant policy shift from suspended VAT credits to a time-bound, compliance-linked refund mechanism. The firm cautions that companies failing to adapt early could face liquidity constraints during the adjustment period. Exporters, who previously operated under SVAT’s suspension-based relief, must now ensure that their systems are fully aligned with the Revenue Administration Management Information System (RAMIS) for electronic refund processing.

The Inland Revenue Department (IRD), under Section 22(5)(f) of the Value Added Tax Act No. 14 of 2002, has gazetted new regulations governing “The Operation of Risk-Based Refund Scheme” through Gazette Notification No. 2456/02, issued on September 29, 2025. The new system entitles eligible taxpayers to receive VAT refunds within 45 days from the due date of filing, provided returns are lodged electronically via RAMIS.

Eligibility for refunds extends to exporters and suppliers engaged in Strategic Development Projects, Specified Projects, and projects approved under Section 22(7) of the VAT Act. Exporters qualify if zero-rated supplies accounted for more than 50% of their total supplies in 2024, a ratio that will be reassessed annually.

Unlike the SVAT framework, which uniformly suspends VAT at source, the new refund model introduces a risk classification system, dividing applicants into low, medium, and high-risk tiers. Classification will depend on filing accuracy, compliance record, and transaction reliability. Low- and medium-risk taxpayers will enjoy expedited refunds without pre-verification, while high-risk taxpayers will be subject to additional checks. Risk ratings will be reviewed semi-annually by the IRD.

The transition also entails a series of compliance deadlines. By October 15, Registered Identified Suppliers (RIS) must submit supply schedules covering transactions until September 30. Between October 15 and 20, RISs must finalise Schedule 04 amendments, while Registered Identified Purchasers (RIP) are required to approve them and issue credit vouchers through RAMIS. All SVAT schedules must be submitted by October 30, and unused vouchers must be returned to the IRD by November 10.

 Further, debit and credit notes linked to suspended invoices issued between April 1 and September 30 must be reported using new formats SVAT 05a for debit notes and SVAT 05b for credit notes and submitted within six months of the original invoice. Corresponding VAT returns must also be updated for adjustment purposes.

KPMG emphasizes that timely refunds will hinge on compliance discipline. Taxpayers maintaining clean records and accurate filings are likely to receive low-risk classifications, ensuring faster refund cycles. Those with inconsistent histories may face verification delays.

To mitigate disruption, KPMG urges firms to begin “housekeeping” immediately: confirming their exporter status based on 2024 VAT data, updating project classifications, and verifying TIN-level contact details for IRD correspondence. Companies are also advised to test-run RAMIS workflows before October filings.

The shift marks a decisive step toward a more transparent, risk-sensitive VAT regime one that rewards compliance but challenges firms to modernize quickly or risk liquidity strain during the transition.

Sri Lanka’s path to recovery remains woefully unfinished. While analysts have pointed to signs of stabilization in 2024 and early 2025, the National People’s Power (NPP) government’s inconsistent handling of the IMF-backed reform agenda often overturning or diluting commitments inherited from past administrations threatens to erode hard-won gains. The result: growth remains below pre-crisis levels, poverty is entrenched, and investor confidence is fragile.

According to the World Bank’s latest Sri Lanka Development Update, “Better Spending for All,” the economy is projected to grow 4.6 percent in 2025 before slowing to 3.5 percent in 2026.

While that represents momentum, the report cautions that the recovery is “uneven and incomplete,” with economic output still trailing 2018 levels and poverty stuck at nearly 24.5 percent of the population.

In 2024, Sri Lanka surprised many by achieving roughly 5 percent GDP growth, exceeding the IMF’s earlier target.

Revenue mobilization improved significantly: the revenue-to-GDP ratio reportedly rose to 13.5 percent in 2024, up from just over 8 percent in 2022. Official reserves also rebounded, reaching about US$6.5 billion by March 2025.

Yet by mid-2025, fragility had crept back in. A US State Department report flagged “policy inconsistency, regulatory uncertainty, bureaucratic delays and poor responsiveness” as key obstacles for foreign direct investment, noting that projects such as a planned USD 400 million wind farm by Adani were scrapped amid government hesitation over tariffs and rule changes.

Reuters analysts now expect growth in 2025 to hover between 4.0 and 4.5 percent, citing slippages in budget implementation and capital spending.

Part of the challenge lies in how the NPP government has retreated from or reversed reforms championed by the previous administration and required by the IMF. For example, the NPP government announced the scrapping of the CEB Reforms Act of 2024, which had permitted private sector participation in electricity generation and aimed to ease the balance sheet burdens on the state.

That reversal directly conflicts with prior commitments in the IMF extended fund facility and was viewed as a major policy inconsistency by observers. At the same time, in June 2025 the government accepted IMF demands to raise electricity tariffs by 18.3 percent through December 2025, passing through significant costs to households and businesses already strained by inflation.

Though this move aligns with IMF structural conditions, the government’s earlier rhetoric had suggested it would resist such austerity measures. The volte-face has prompted accusations of policy immaturity.

The NPP’s approach to state-owned enterprises (SOEs) also exposes contradictions. While the government publicly expressed Marxist leanings and had criticized privatization, it has quietly resumed talks on restructuring the national airline and other entities under IMF pressure.

However, debates over ownership, social welfare of workers, and tariff regimes continue to stall real progress.

The IMF itself remains cautious. In April 2025, Sri Lankan authorities reached a staff-level agreement for the fourth review of the program, thus unlocking approximately US$344 million upon Executive Board approval—but only after committing to prior actions such as restoring electricity cost-recovery pricing and instituting an automatic tariff adjustment mechanism.

Yet in public statements, government officials have occasionally questioned or backtracked on the timing and sequencing of reforms.

Moreover, IMF officials warned in June that Sri Lanka “has no room for policy errors,” noting that half of its sixteen previous IMF programs ended prematurely due to weak commitment or reform fatigue.

Compounding the problem, the government pledged to raise public investment from 13 percent to 18 percent of total expenditure in 2025.

However, analysts caution that meeting IMF revenue targets could force capital spending to be cut

 Meanwhile, interest payments alone are projected to consume 41 percent of government outlays in 2025, choking fiscal flexibility.In sum, Sri Lanka remains caught in a limbo: macroeconomic stability has returned in part, and reform gains are visible, but the NPP government’s policy reversals, capacity constraints, and mixed messaging risk undermining the recovery. To avoid another cycle of crisis, the country needs coherent, consistent execution of reforms not rhetorical shifts. Absent that, growth may remain sluggish and development goals will remain beyond reach

Sri Lanka’s construction industry, long battered by economic turbulence, shows renewed signs of life in 2025—but many in the field warn that absent decisive government support, the recovery may bypass the firms that need it most.

In the first half of 2025, the construction sector’s output has held steady, but the real story lies in sentiment and structural strains. According to data from Trading Economics, the construction contribution to GDP fell from LKR 235,741 million in Q1 to LKR 225,151 million in Q2.

While that dip raises alarms, it follows a period of strong expansion in late 2024: the construction value-added segment recorded year-on-year growth of 27.1 % in Q4 2024, underpinned by a surge in capital investments and infrastructure projects.

Forward projections remain comparatively optimistic. Industry analysts forecast a 7.9 % real growth in 2025, driven by increased public and private sector investment in infrastructure, transport, energy, and utility works.

The Central Bank and allied authorities point to the recovery in gross fixed capital formation as a key pillar sustaining momentum.

Sentiment among contractors has improved notably. The Central Bank’s Purchasing Managers’ Index (PMI) for construction climbed from 51.4 in December 2024 to 52.9 in January 2025, and by mid-year had reached 58.6 in June and 61.1 in August.The index gains reflect renewed optimism in order flows, employment, and purchasing activity.

Yet behind these headline gains lie fissures threatening to split the industry’s recovery. Small and medium contractor’s report that they remain excluded from the rebound. Large contractors have cornered most new infrastructure work, while SMEs struggle for access to capital, face blocked payments, and find themselves excluded from government contract allocations. Advocates say that without budget approval of earlier industry proposals, many smaller firms could collapse.

Industry leaders warn that arching bureaucratic delays multiple committee reviews, misinterpretation of contract clauses, and stalling of relief measuresthreaten to derail even the positive momentum. As one contractor put it, “execution—not more studiesis now what the industry needs.”

The proposed relief measures remain largely unimplemented. These span tax and cash-flow concessions (such as exemption from the Social Security Contribution Levy on contracts predating 2022 and release of retention funds), reform of contract terms to reflect crisis-related delays, inflation and currency protections, and mechanisms to ensure fair payments to subcontractors and suppliers. Also on the table is institutional reform via a Standing Steering Committee on Construction with joint government and industry representation, intended to cut through red tape.

The zeal for recovery is hardly misplaced. Construction accounts for an estimated 7–8 % of Sri Lanka’s GDP and sustains hundreds of thousands of jobs, both directly and through supply chains. A revived sector can deliver multiplier impacts across steel, cement, transport, manufacturing, services and more. Visible infrastructure and housing improvements could also help restore public trust and attract investment.

Still, risks loom. The drop in Q2 construction GDP warns that gains are fragile. At the same time, Sri Lanka’s overall growth forecast is being moderated: the World Bank expects full-year 2025 growth of just 3.5 % owing to structural headwinds and global uncertainty.

For the construction rebound to be sustainably inclusive, industry groups say, the government must act swiftly. Every month of delay could deep-freeze resources, cost jobs, and let progress slip. In a country where a broad recovery remains elusive, leaving behind the backbone of the industry could threaten not just projects on paper but the nation’s path forward.

The government has published the Gazette on Betting and Gambling Levy (Amendment), which came into effect on October 1, 2025.

Under the new regulations, the tax on gross collections from gambling businesses — including bookmakers and gambling operators — has been increased from 15% to 18%.

In addition, the casino entry fee payable by Sri Lankan citizens has been doubled to 100 US dollars, marking a 100% increase from the previous rate.

The move is part of the government’s broader fiscal measures aimed at boosting state revenue from the gaming and entertainment sectors.