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District-Level Review Meeting Highlights Progress of Prajashakthi and Key Development Programmes

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A district-level progress review meeting on major government development programmes, including the national Prajashakthi initiative, was held yesterday (04) at the Presidential Secretariat under the chairmanship of Secretary to the President Dr. Nandika Sanath Kumanayake, the President’s Media Division (PMD) announced.

Extensive discussions focused on the implementation of Prajashakthi at district level and its future direction. Officials emphasised that the programme should not be treated merely as another poverty alleviation scheme but as a transformative initiative aligned with the national vision of building a prosperous and inclusive Sri Lanka.

District Secretaries were informed that, going forward, all development projects must originate from village-level committees, ensuring that priority is given to actual community needs rather than budgetary convenience. Funding will be channelled through the relevant ministries, departments, provincial councils, and local authorities to maintain a cohesive approach to national objectives.

The meeting also noted that the private sector is expected to play an active role in the framework of rural development under Prajashakthi. Highlighting the significant responsibility of District Secretaries, Dr. Kumanayake urged them to bring forward innovative proposals to advance the initiative as a comprehensive national programme.

In addition, the review covered directives on the implementation of the Clean Sri Lanka initiative and progress of other key government efforts, including the Mid-Year Budget Programme, District Development Programmes, Rural Roads Development, Estate Community Infrastructure Development, Disaster-Resilient Housing for plantation areas, facilities for identified schools and sports schools, measures to mitigate human-elephant conflict, and initiatives for persons with disabilities.

Attention was also drawn to government programmes targeting healthcare, education, poverty reduction by 2030, and the decentralisation of the President’s Fund to improve accessibility and impact.

It was agreed that future progress reviews will incorporate inputs from both line ministries and District Secretaries to strengthen accountability and coordination.

Among those present were Secretary to the Ministry of Rural Development, Social Security and Community Empowerment Sampath Manthrinayake; Secretary to the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government S. Aloka Bandara; Senior Additional Secretaries to the President Kapila Janaka Bandara and Roshan Gamage; Legal Adviser to the President J.M. Wijebandara; Additional Secretaries to the President Eng. S.P.C. Sugeeshwara (Clean Sri Lanka Programme) and N. Wanasingha (Food Security and Policy); and Director General of the National Budget Department Jude Nilukshan.

Duchess of Kent Dies Peacefully at 92

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Buckingham Palace has announced with “deep sorrow” the death of the Duchess of Kent at the age of 92. She passed away peacefully on Thursday night at Kensington Palace, surrounded by her family. Flags on royal residences, including Buckingham Palace, have been lowered to half-mast as the Royal Family enters a period of mourning.

Katharine, Duchess of Kent, the wife of Prince Edward, Duke of Kent and first cousin of the late Queen Elizabeth II, was the oldest member of the Royal Family. She will be remembered for her lifelong devotion to public service, her passion for music, and her enduring empathy for young people.

The King, Queen, and members of the Royal Family paid tribute, recalling her “life-long devotion to all the organisations with which she was associated, her passion for music and her empathy for young people.” Prime Minister Sir Keir Starmer praised her “compassion, dignity and human touch,” while tennis legend Martina Navratilova said the duchess had touched “millions of people around the globe in a positive way.”

A familiar figure at Wimbledon, the duchess became known for consoling athletes and presenting trophies — most memorably comforting Czech player Jana Novotna in 1993, and later handing her the winner’s trophy in 1998.

Born Katharine Worsley in Yorkshire, she married the Duke of Kent in 1961 at York Minster, with Princess Anne as a bridesmaid and Queen Elizabeth II among the congregation. In 1994, she became the first member of the Royal Family in more than 300 years to convert to Catholicism, describing it as a deeply personal decision.

Beyond royal duties, she carved out an individual path through music and social service. She supported numerous music charities, sang in the Bach Choir, and taught music anonymously in a Hull primary school, where pupils knew her simply as “Mrs Kent.” She later set up a charity to help disadvantaged young people access instruments and music education, saying: “Music has the power to give confidence and self-belief.”

The Duchess and Duke of Kent had three children, though one son was stillborn in 1977, an experience that left her struggling with “acute depression” at a time when mental health was little discussed. Her openness in later years brought attention to the issue.

Her funeral arrangements have not yet been announced, though it is expected to follow Catholic rites in line with her faith.

She is survived by her husband, the Duke of Kent, aged 89, and their two sons and daughter.

CAA Seizes Unsafe Sweets and Dates in Pettah Raid

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Consumer Affairs Authority (CAA) officials have seized a stock of candy, chocolates, jelly products, and dates from a shop in Pettah after finding them unsuitable for consumption.

During the raid, carried out on a tip-off, officials discovered that the sweets had been imported without proper documentation or labelling and did not display expiry dates. Some products also lacked details of origin, while others had labels deliberately removed.

“ Nobody knows what is included in these products,” officials said, warning of the potential health risks.

Packetted dates deemed unfit for consumption were also confiscated. Legal action has been initiated against the vendor, the CAA confirmed.

PM Harini Amarasuriya Holds Talks with Italian Under Secretary Maria Tripodi at Temple Trees

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Prime Minister Dr. Harini Amarasuriya met with Maria Tripodi, Under Secretary of State for Foreign Affairs and International Cooperation of Italy, on Thursday at Temple Trees for discussions aimed at strengthening bilateral ties.

Talks focused on advancing political consultations, expanding trade and investment cooperation, promoting tourism, and enhancing cultural and educational exchanges. The Prime Minister emphasized Sri Lanka’s commitment to building a resilient economy, upholding public trust, and advancing a corruption-free, stable nation. She also underscored the importance of relations with the European Union, expressed appreciation for Italy’s longstanding friendship, and reaffirmed Sri Lanka’s support in international forums.

Tripodi commended Sri Lanka’s recent progress and reiterated Italy’s continued support.

The meeting was attended by senior officials from both delegations. The Italian side included Damiano Francovig, Ambassador of Italy to Sri Lanka, along with senior officers. The Sri Lankan delegation comprised Pradeep Saputhanthri, Secretary to the Prime Minister; Sagarika Bogahawatta, Additional Secretary to the Prime Minister; Sugeeshwara Gunaratna, Director General of the Europe and North America Division; and Isurika Karunarathna, Director of the Europe and North America Division, Ministry of Foreign Affairs, Foreign Employment and Tourism.

Showers or thundershowers may occur at a few places in Uva, eastern and Northcentral provinces

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A few showers may occur in Western, Sabaragamuwa and Northern provinces and in Galle, Matara, Kandy, and Nuwara-Eliya districts.Showers or thundershowers may occur at a few places in Uva, eastern and Northcentral provinces after 2.00 p.m.

Mainly fair weather will prevail elsewhere of the island.

The sun is going to be directly over the latitudes of Sri Lanka during 28th of August to 07th of September due to its apparent southward relative motion. The nearest places of Sri Lanka over which the sun is overhead today (06) are Ahungalla, Elpitiya, Amugoda, Thawalama, Deniyaya, Urubokka, Embilipitiya, Suriyawewa, Beralihela and Galkaduwa about 12.08 noon.

Update: Jeep Driver Arrested After Deadly Ella–Wellawaya Road Accident

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Police confirmed that a horrific accident occurred last night on the Ella–Wellawaya road when a bus traveling towards Wellawaya collided with an oncoming jeep and a roadside iron barrier, before plunging nearly 1,000 feet into a ravine.

The driver of the jeep has been arrested in connection with the crash. According to police, further investigations are underway, and an official statement has been issued regarding the incident.

Banana Tissue Culture Lab Boosts North Central Farmers

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A state-of-the-art banana tissue culture laboratory has been established in Sri Lanka’s North Central Province, offering farmers easier access to high-quality planting materials for the first time.

The facility, located at the North Central Provincial Agriculture Department’s In-Service Training Institute in Maha Illuppallama, was developed with technical assistance from the Food and Agriculture Organization (FAO) under the South-South Cooperation (SSC) Programme with China.

The new lab is expected to supply disease-free, high-yielding banana plants to farming communities in the North Central, Northern, and North Western Provinces. Until now, growers in these areas had to rely on supplies transported from the south, a process that was both expensive and prone to transport-related losses.

Officials said the lab would significantly reduce these challenges while improving farmers’ access to healthier planting material. “By combining Sri Lanka’s commitment to agricultural development with FAO’s technical expertise and China’s support through South-South Cooperation, we are ensuring that farmers have access to the quality planting material they need to increase productivity and incomes,” FAO Representative for Sri Lanka and the Maldives, Vimlendra Sharan, noted at the launch.

FAO has supported the project by financing the procurement of advanced laboratory equipment and chemicals, while also facilitating technical training to ensure smooth operations and adherence to international standards. The training enables staff to deliver high-quality tissue culture plants that meet the growing demand in the region.

Provincial leaders emphasized that the lab is more than just a facility—it is a tool for economic empowerment. “By improving farmers’ access to high-quality planting material, we are empowering our agricultural communities, reducing costs, and paving the way for greater competitiveness in local and international markets,” North Central Province Governor Wasantha Jinadasa said.

Banana is one of Sri Lanka’s most widely cultivated fruits, with growing demand both locally and for export. However, farmers have often struggled with pests, diseases, and inconsistent planting material. Experts believe that access to tissue-cultured plants will help overcome these barriers, improve yields, and enhance the overall quality of production.

 The initiative also underscores the value of international cooperation in strengthening local agriculture. By leveraging Chinese expertise through the SSC programme and FAO’s technical knowledge, Sri Lanka is investing in a more sustainable, resilient banana industry.

Officials said the facility will directly benefit thousands of farming families, helping them improve incomes while contributing to national food security. The lab is expected to become a model for future agricultural development projects across the country.

Sri Lanka Defers 18% VAT on Digital Giants Amid Exit Threats

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Sri Lanka has decided to defer the implementation of its controversial 18% Value Added Tax (VAT) on digital services offered by non-resident companies, following pushback from global online platforms and travel service providers warning of possible withdrawal from the local market.

Originally slated to take effect from October 1, 2025, under the Value Added Tax (Amendment) Act No. 4 of 2025, the levy will now be introduced on April 1, 2026, Cabinet Spokesman Dr. Nalinda Jayatissa announced yesterday.

The tax targets international digital service providers offering services to Sri Lankan consumers, including Booking.com, Agoda, Expedia, Airbnb, Netflix, and Meta (Facebook and Instagram). Many of these firms, citing compliance difficulties and rising operational costs, have expressed concerns that the tax could make the Sri Lankan market less attractive. Some are reportedly reviewing their level of engagement, while smaller platforms have hinted at potential withdrawal if the policy is enforced without transitional measures.

According to industry insiders, Booking.com and Agoda have already flagged difficulties in integrating Sri Lanka’s VAT rules with their global billing systems, warning local hotel operators that additional costs may be passed on to end customers. Similarly, Airbnb is assessing whether compliance with the VAT regime is commercially viable given Sri Lanka’s relatively small market compared to regional tourism hubs.

For the travel and hospitality industry—currently on a revival trajectory after years of crisis—the move could not have come at a worse time. Tourist arrivals in 2025 have already surpassed 1.49 million by August, with the Government targeting 3 million visitors and USD 5 billion in revenue by year-end. Analysts warn that withdrawal or reduced engagement by global booking platforms would severely affect Sri Lanka’s international visibility and online accessibility.

Local hoteliers and tour operators fear that additional costs on digital services could ultimately be passed on to consumers, eroding competitiveness against regional rivals such as Thailand and Malaysia, where digital VAT regimes are either lower or more investor-friendly.

The Government, however, insists that the tax is necessary to ensure equity in revenue collection, arguing that domestic companies already bear VAT obligations while global digital giants earn significant profits without contributing to the Treasury. “The policy decision stands firm, but we are granting more time for non-resident providers to comply with VAT requirements,” Dr. Jayatissa said.

 While the deferral offers breathing space, stakeholders remain divided. Some welcome the delay as a chance to align systems and negotiate compromises, while others fear the looming deadline could still drive international service providers to scale back operations.

The next six months will be critical in determining whether Sri Lanka can balance much-needed revenue mobilisation with maintaining its appeal to international platforms vital for tourism, e-commerce, and digital connectivity.

Sri Lanka Moves to Revise Tourism Act amid Industry Revival

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Sri Lanka has taken the first formal step toward revising its nearly two-decade-old Tourism Act, with Cabinet approval already granted to draft a new framework. The move comes as the sector records a strong revival in 2025, raising hopes of surpassing ambitious arrival and revenue targets.

Tourism Deputy Minister Prof. Ruwan Ranasinghe yesterday confirmed that the drafting process has begun, though he cautioned that reforms remain at an early stage. “The Cabinet approval to issue a new Act has been granted, and now it has to move through the legislative drafting process. It takes time, especially when many Government institutions are involved,” he told the Daily FT.

The 2005 Tourism Act has long been criticised as outdated, failing to address today’s challenges such as digitalisation, sustainable tourism, and streamlined promotion mechanisms. Industry stakeholders argue that structural inefficiencies particularly in procurement for overseas campaigns—have hindered Sri Lanka’s competitiveness against regional rivals.

Prof. Ranasinghe acknowledged these gaps, noting that Treasury procurement rules often delay marketing drives. “Currently, we must follow Treasury procurement guidelines, which add lengthy grace periods. What we are trying to do is minimise these steps and speed up the process,” he explained. He added that e-procurement and broader digitalisation are being considered as part of the reforms.

Another key element under review is governance. The Deputy Minister said private sector concerns would be addressed, with more representation for Small and Medium Enterprise (SME) associations on the Tourism Board. “We want to ensure their voices are heard. The revisions must be well thought out and cannot be rushed,” he stressed.

The overhaul comes at a pivotal moment. By August 2025, Sri Lanka had welcomed over 1.49 million visitors, a 15% year-on-year increase. Earnings for the first five months of the year reached USD 1.38 billion, putting the country on track toward its annual target of 3 million arrivals and USD 5 billion in revenue. This follows the 2024 performance of 2.05 million tourists generating USD 3.17 billion in income.

Tourism analysts argue that unless the Act is modernised, Sri Lanka risks falling short of its full potential despite the recovery. The current legal framework does not adequately support emerging segments such as high-end tourism, casino-driven investment, and eco-tourism, nor does it address widespread concerns over informal operators evading taxes.

 Prof. Ranasinghe, however, stressed that reforms would not stall ongoing campaigns. “We can’t afford to delay promotions while the Act is being developed. The work will continue,” he assured.With arrivals surging and global competition intensifying, the success of the new Tourism Act will be measured by how effectively it balances governance, speed, and innovation to keep Sri Lanka on a sustainable growth path

IPS Study Warns Rising Cigarette Smuggling Undermines Health, Revenue

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A new study by the Institute of Policy Studies of Sri Lanka (IPS) has revealed that cigarette smuggling is widespread in the country, undermining both public health policies and government revenue collection. The report stresses the urgent need for stronger enforcement, digital tracking systems, and public participation to curb the illegal trade.

The study, titled “Tobacco Smuggling in Sri Lanka – A Scoping Study”, notes that despite high excise taxes imposed to discourage tobacco use, smuggling allows cigarettes to enter the market at significantly lower prices. This makes them more accessible to young people and low-income groups, eroding the effectiveness of anti-tobacco measures.

“Smuggled cigarettes bypass health warnings and taxes, making them cheaper and more dangerous,” said the study’s lead author, IPS Research Fellow Dr. Erandathie Pathiraja.

Co-authors Nishamini Ihalagedara and Ruwan Samaraweera added that the illegal trade not only heightens healthcare costs but also robs the state of badly needed revenue. “This is a double blow—the health sector bears the rising burden while the Treasury loses billions in potential income,” they noted.

The IPS report challenges the common view that higher cigarette taxes directly fuel smuggling. Analysis of customs seizure data shows no consistent correlation between excise tax hikes and volumes of seized contraband. Instead, factors such as corruption, gaps in enforcement, and porous borders play a more decisive role.

Sri Lanka’s tobacco industry is heavily taxed, with excise duties accounting for the bulk of cigarette prices. While taxation is seen as a key tool to reduce consumption, the IPS study cautions that weak enforcement leaves loopholes that smugglers exploit. The result is a parallel market that both undermines official policy and exposes vulnerable groups to unregulated products.

To address the problem, IPS draws on international best practices. Recommendations include introducing digital excise tax stamps to track products, offering incentives for public reporting of smuggling activities, and tightening border control measures. Greater transparency and stronger institutional coordination are also highlighted as priorities.

The report warns that unless decisive action is taken, Sri Lanka risks losing both the health and revenue battle against illegal tobacco. “Technology, enforcement, and public engagement must go hand in hand to tackle smuggling effectively,” the authors stressed.

IPS argues that the country cannot afford to overlook the issue, as unchecked cigarette smuggling threatens to undo years of progress in reducing tobacco use while simultaneously weakening fiscal stability.