A protest was held today (10) in front of the Presidential Secretariat in Colombo opposing the decision to remand 24-year-old Tamil musician Ganesh Kumar Sangeethan from Udayanagar West, Kilinochchi, for 14 days

The demonstration, organized by a coalition of political and civil society activists, called for the protection of freedom of expression and raised concerns over the use of Sri Lanka’s Prevention of Terrorism Act (PTA).

Protesters emphasized that the PTA, which they argued has been used to restrict freedom of speech and expression, should be repealed. They also urged authorities to withdraw a proposed new law intended to replace the PTA, claiming that it could similarly undermine fundamental rights and civil liberties.

Participants at the protest highlighted the importance of safeguarding democratic freedoms, particularly the right to free speech and artistic expression. They argued that individuals should not face detention or legal action for expressing cultural, political, or social views through creative works.

The demonstration was attended by political representatives, civil society organizations, and rights activists who called on the government to ensure that freedom of expression remains protected under the law.

Photos: Ajith Seneviratne

Violence Erupts Across Northern Ireland After Belfast Knife Attack; Homes Burned, Residents Flee

Violent disorder erupted across several towns and cities in Northern Ireland following a knife attack in Belfast, forcing residents to flee their homes as houses, vehicles, and public property were set ablaze.

The unrest followed a knife attack in north Belfast on Monday night. A 30-year-old Sudanese national is due to appear in court on Wednesday after being charged with attempted murder. The victim, a man in his 40s, remains hospitalized with serious injuries to his eyes, neck, and back.

In the aftermath of the attack, demonstrations and gatherings were reported in multiple locations, including Belfast, Ballymena, Bangor, Newtownabbey, Antrim, and Londonderry. While some protests remained peaceful, violence broke out in several areas.

Residents in parts of east Belfast reported scenes of chaos as masked groups moved through neighborhoods. One resident of Lendrick Street told local media that cars were set on fire, with flames spreading to nearby homes, while masked individuals attempted to force entry into properties.

On Newtownards Road in east Belfast, around 100 masked individuals gathered, allegedly kicking in doors and smashing windows. According to Ulster Unionist Party (UUP) leader Jon Burrows, many of those involved appeared to be teenagers.

Several vehicles, including a public bus, were set alight during the disorder. Public transport operator Translink condemned the attack on its services and announced the suspension of public transport operations in affected areas.

The Police Service of Northern Ireland (PSNI) said “sporadic pockets of disorder” had emerged across the region in response to the knife attack and urged the public to remain calm.

Northern Ireland Justice Minister Naomi Long strongly condemned the violence, stating there was no place for “masked thugs” in Northern Ireland.

“While I recognise and understand the concerns following the attack in north Belfast, hate cannot be allowed to win,” she said.

Authorities continue to monitor the situation as investigations into both the knife attack and the subsequent disorder remain ongoing.

A sharp increase in consumer borrowing is drawing attention from economists who warn that Sri Lanka’s economic recovery could face new risks if rising credit-fuelled spending continues to drive demand for imported goods.

Recent research led by Professor Wasantha Athukorala highlights an extraordinary expansion in loans used to finance consumer durable purchases. Between December 2024 and March 2026, lending for durable goods jumped by 213 percent, increasing from Rs. 40 billion to Rs. 123 billion.

Consumer durable loans typically fund purchases such as motor vehicles, household appliances, furniture, and electronic equipment. While rising demand for such products often signals improved consumer confidence, economists caution that many of these goods are imported, creating additional pressure on foreign exchange reserves.

Professor Athukorala argues that the trend reflects a growing dependence on credit-financed consumption rather than savings-based spending. As households borrow more to purchase imported products, demand for foreign currency rises, potentially undermining efforts to strengthen external sector stability.

The surge in durable goods financing forms part of a broader expansion in personal borrowing. Total personal loans increased by Rs. 635 billion during the fifteen-month period, reaching Rs. 2.45 trillion by March 2026. The figures suggest that consumers are relying increasingly on borrowed funds for both everyday expenditure and major purchases.

Credit card usage also expanded during the period. Outstanding balances rose from Rs. 168 billion to Rs. 197 billion, reinforcing evidence of growing consumer spending supported by debt.

At the same time, another trend has emerged. Pawning advances exceeded Rs. 1 trillion, indicating that many households are continuing to seek liquidity through gold-backed loans. Analysts say the simultaneous growth of consumer spending and pawning activity presents a mixed picture of financial wellbeing.

While stronger consumption may support economic activity and retail sector growth in the short term, it also raises questions about the sustainability of household finances. Increasing reliance on debt can create vulnerabilities if income growth fails to keep pace with repayment obligations.

One of the more striking findings in the research is the decline in educational borrowing. Loans obtained for education purposes fell by nearly 60 percent during the same period, suggesting a shift in household priorities away from long-term investment in skills and human capital.

Economists view this development with concern, arguing that productive investment is essential for sustainable economic growth. Consumption can stimulate demand temporarily, but education and skills development generate longer-term economic benefits.

The data suggest that consumer demand is recovering faster than investment-oriented spending. While this may provide short-term momentum for economic growth, policymakers remain wary of the potential impact on imports and foreign exchange reserves.

As Sri Lanka continues its post-crisis recovery, authorities will be monitoring whether rising consumer credit contributes to sustainable economic expansion or creates new vulnerabilities in an economy that remains sensitive to external financial pressures.

Sri Lanka’s textile industry is preparing for a significant shift in import taxation following a government decision that could alter business costs, cash-flow management, and competitiveness across the sector.

The reform package, approved by the Committee on Public Finance (CoPF), removes the longstanding cess levy imposed on imported textiles and replaces it with an 18 percent Value Added Tax (VAT). The new framework came into effect on April 1, 2026, as part of wider fiscal reforms aimed at modernising the country’s tax system.

Government officials describe the measure as an effort to simplify taxation and improve transparency. By replacing multiple charges with a VAT-based approach, policymakers argue that the system will align textile imports with broader tax policy objectives and improve overall efficiency.

Under the previous arrangement, importers paid a cess charge when goods entered the country. The revised framework requires payment of VAT instead. Authorities maintain that businesses registered within the VAT system will eventually recover these costs through input tax credits, reducing the long-term financial burden.

However, industry participants are focusing on the short-term implications. Importers must now finance higher tax payments upfront, potentially creating liquidity pressures. For smaller firms with limited access to financing, the transition could prove particularly challenging.

The issue received considerable attention during parliamentary committee discussions. Officials acknowledged that businesses would initially face larger tax outlays but argued that reimbursement mechanisms would compensate for these expenses over time.

Critics remain unconvinced. They argue that not all market participants are equally positioned to benefit from VAT credits. Smaller importers, retailers, and businesses operating with less sophisticated accounting systems may find it more difficult to recover costs quickly.

There are also concerns that temporary cash-flow constraints could ultimately be passed on to consumers through higher retail prices. If businesses face increased financing costs, they may have little choice but to adjust pricing strategies accordingly.

The reforms extend beyond textiles. CoPF also approved new Gazette notifications introducing additional Harmonised System classifications for Port and Airport Development Tax and Excise Tax purposes. Authorities say these measures will improve customs administration and reduce classification disputes that have historically complicated import procedures.

Supporters argue that stronger classification systems and streamlined tax structures will improve compliance, enhance revenue collection, and reduce loopholes within the import regime. They view the reforms as an important step toward creating a more transparent and predictable business environment.

Nevertheless, many industry stakeholders remain cautious. Businesses are seeking assurances that implementation will be efficient and that administrative burdens will not increase unnecessarily.

As the textile sector adapts to the new framework, the debate is moving beyond policy objectives toward practical outcomes. Whether the reforms strengthen competitiveness and efficiency or create additional financial strain will depend on how effectively businesses navigate the transition and how efficiently tax authorities administer the new system.

Sri Lanka’s tax administration is undergoing a major technological transformation as authorities accelerate the rollout of a digital invoicing platform designed to improve compliance, increase transparency, and strengthen government revenue collection.

The Inland Revenue Department (IRD) recently launched the second stage of its Digital Invoicing System, extending the programme beyond exporters and into a wider segment of VAT-registered businesses. The move forms part of broader reforms introduced through the 2026 Budget aimed at modernising the country’s tax administration framework.

The initiative first began in October 2025 with a pilot phase focused on exporters. More than 340 companies, including firms operating in the apparel and tea sectors, voluntarily adopted the system. Officials say participants experienced faster VAT refund processing thanks to automated verification processes that reduced paperwork and administrative delays.

Encouraged by those outcomes, tax authorities are now inviting larger manufacturers, retailers, and major VAT taxpayers to join the programme before wider implementation takes effect. Technical integration guidelines have already been circulated to numerous export-oriented companies and manufacturers preparing to adopt the system.

At the centre of the reform is an effort to address long-standing weaknesses in tax collection. Sri Lanka has historically struggled with under-reporting, delayed VAT refunds, and revenue leakages linked to manual documentation systems. Authorities believe digitisation can reduce these vulnerabilities by creating a transparent electronic record of transactions.

The system operates through direct integration with the Revenue Administration Management Information System (RAMIS), enabling tax officials to monitor transactions in near real time. Businesses using Enterprise Resource Planning (ERP) software can connect directly through Application Programming Interface (API) technology, reducing manual data entry and improving reporting accuracy.

Government officials argue that digital invoicing will make it harder for businesses to conceal transactions or submit inaccurate VAT claims. By generating a detailed audit trail, the system is expected to improve compliance and strengthen revenue collection at a time when public finances remain under pressure.

Despite the anticipated benefits, implementation challenges remain. Smaller businesses may face difficulties adapting to new technology requirements, while concerns persist regarding cybersecurity, data protection, and the costs associated with system upgrades.

Industry groups are also seeking clarification on compliance obligations and technical standards before committing to full participation. Some businesses fear that inadequate preparation could create operational disruptions during the transition period.

The most ambitious stage of the project is expected later this year, when authorities introduce Point of Sale integration across all VAT-registered businesses. This phase will allow transaction data to be captured instantly and transmitted directly to tax authorities, creating a nationwide digital tax monitoring network.

If successful, the programme could become one of Sri Lanka’s most significant post-crisis reforms. Beyond boosting tax revenues, officials hope it will improve investor confidence, enhance transparency, and support the country’s broader digital economy agenda. The effectiveness of the initiative, however, will depend largely on how smoothly businesses adapt to the new system.