March 28, Colombo (LNW): A high-level discussion was convened in Colombo today to accelerate the digitisation of the Labour Ministry, aiming to enhance efficiency and accessibility in public service delivery.

The meeting was chaired by Minister Dr Anil Jayantha Fernando, alongside Deputy Minister Mahinda Jayasinghe and Deputy Minister of Digital Economy Eranga Weeraratne.

Officials and technology experts engaged in deliberations on the practical implementation of the digitisation initiative.

Key areas of focus included reducing bureaucratic delays, optimising online service availability, and integrating digital solutions to improve responsiveness to public needs.

Discussions also emphasised the importance of creating a unified digital platform to streamline operations between the Department of Labour, the Central Bank, and the Employees’ Provident Fund, ensuring seamless service delivery.

The initiative is expected to modernise the Ministry’s operations, minimising the need for physical visits and paperwork, thereby offering citizens a more efficient and transparent system to access essential services.

By: Staff Writer

March 27, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has reassured borrowers who face challenges in securing loan restructuring support from financial institutions that they can lodge complaints with the Financial Consumer Relations Department (FCRD).

 This assurance came from CBSL Governor Dr. Nandalal Weerasinghe in response to concerns raised by small and medium-sized enterprises (SMEs) regarding inadequate assistance from the banking sector. However, he noted that with only around 500 requests for support, the issue does not appear to be widespread.

 Dr. Weerasinghe highlighted that banks had continuously supported SMEs during the economic crisis and that recent economic improvements, including lower interest rates and inflation, have benefited businesses.

 Additionally, he pointed out that non-performing loans (NPLs) in the banking sector have decreased to approximately 12% from nearly 14% previously.

 In a separate statement, the CBSL emphasized that in coordination with the Sri Lanka Banks’ Association (Guarantee) Ltd. (SLBA), relief measures have been extended to affected SMEs through licensed commercial and specialized banks. 

These measures were outlined in Circular No. 04 of 2024, dated 19 December 2024, and its addendum, Circular No. 01 of 2025, dated 1 January 2025. These directives aim to ensure consistent implementation of relief initiatives across all licensed banks.

 With the deadline of 31 March 2025 fast approaching, borrowers are urged to engage with their respective banks to access these relief measures. 

Those facing rejection or disputes are encouraged to appeal to the Director of FCRD through various channels, including the hotline 1935, telephone number 0112477000, fax 0112477744, postal correspondence to the Central Bank’s Financial Consumer Relations Department, or via the CBSL website (www.cbsl.gov.lk/fcrd).

 The relief measures available to SMEs include rescheduling of credit facilities for up to 10 years, extension of repayment commencement periods based on outstanding capital, conditional waivers of unpaid interest, and the provision of new working capital loans. Despite these offerings, only a limited number of borrowers have taken advantage of the available support so far.

 In addition to these measures, the CBSL and the banking sector have implemented further initiatives to aid businesses in their recovery. As part of these efforts, the CBSL issued Circular No. 02 of 2024 on 28 March 2024, mandating banks to establish Business Revival Units (BRUs) to support struggling but viable businesses.

 These BRUs provide assistance such as restructuring and rescheduling credit facilities, adjusting interest rates and maturities, offering interim financing, and providing advisory services—contingent on the submission of viable business and repayment plans.

 By the end of 2024, banks had facilitated around 6,000 cases through these BRUs, demonstrating ongoing efforts to support business recovery and sustainability. The CBSL remains committed to ensuring that SMEs receive the financial assistance needed for their continued growth and stability.

By: Staff Writer

March 27, Colombo (LNW): Sri Lanka and India share deep-rooted economic and trade relations, with India being one of Sri Lanka’s largest trading partners and investors. 

Over the years, the two nations have strengthened their cooperation through bilateral agreements, trade facilitation, and industrial collaborations, driving economic growth on both sides. 

Against this backdrop, the Indo-Lanka Chamber of Commerce and Industry (ILCCI) of The Ceylon Chamber of Commerce recently hosted a discussion with Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, to explore Sri Lanka’s industrial growth strategy and Indo-Lankan economic ties.

 The event brought together key stakeholders to discuss the Government’s vision for economic expansion and trade cooperation. ILCCI President M. Raghuraman welcomed Deputy Minister Abeysinghe and reiterated the chamber’s commitment to fostering stronger business and investment partnerships between Sri Lanka and India.

 During the session, the Deputy Minister outlined the Government’s economic priorities under the latest Budget, emphasizing key areas such as infrastructure development, energy sector advancements, and digital transformation. 

He also stressed the need for efficient customs and tax administration, strengthened border controls, and industry-specific policy reforms to enhance competitiveness and ease of doing business.

A broad range of industries—including IT, tourism, marine sectors, vehicle parts manufacturing, and agriculture—were discussed. Deputy Minister Abeysinghe underscored Sri Lanka’s potential to emerge as an IT hub and the critical role of export growth in driving economic development. 

He reassured stakeholders of the Government’s efforts to streamline bureaucratic processes and encouraged private sector participation in shaping industry policies. He also urged businesses to collaborate as sectoral clusters to present unified recommendations for policy improvements.

 The discussion concluded with an interactive Q&A session where industry representatives shared insights and raised concerns. Key topics such as skills development, access to financing, education, and the role of Free Trade Agreements (FTAs) in enhancing market access were also addressed. 

The session highlighted the importance of continued collaboration between the Government and the private sector to drive industrial progress and strengthen Indo-Lankan economic ties.

By: Staff Writer

March 27, Colombo (LNW): The government has issued 6.8 million Taxpayer Identification Numbers (TINs) to facilitate access to public services, according to M.A. Priyanka, President of the Inland Revenue Commissioners Association. Speaking at the association’s annual conference, he emphasized that TINs will serve as digital identification codes for citizens, simplifying interactions with government agencies.

Currently, TINs cover approximately 46% of the population aged 18 and above. However, Priyanka acknowledged that the issuance process has been confusing and complex for many. He stressed the need for greater public awareness to clarify misconceptions, particularly that obtaining a TIN does not automatically mean an individual is liable to pay taxes.

State Finance Minister Ranjith Siyambalapitiya addressed public concerns, reiterating that while registration with the Inland Revenue Department (IRD) is now mandatory for individuals over 18, it does not imply tax obligations for all.

This requirement was established through Gazette Notification No. 2334/21, issued on May 31, 2023, under Section 102 of the Inland Revenue Act.

The notification identifies 14 specific categories of individuals who must register for a TIN, including professionals such as doctors, lawyers, engineers, and accountants, as well as vehicle and property owners, business registrants, and those with significant financial transactions.

Among those required to register are employees contributing over LKR 20,000 per month to provident funds, individuals receiving payments exceeding LKR 100,000 monthly or LKR 1.2 million annually, and those obtaining building plan approvals from local authorities.

Despite the government’s push, several tax experts have raised legal concerns. Former Deputy Commissioner General of IRD Tax Policy, N.M.M. Mifly, argued that the mandate to register all individuals over 18 lacks legal backing under Section 102 of the Inland Revenue Act.

He pointed out that only the IRD Commissioner-General has the authority to determine who qualifies for registration, and citizens could challenge this requirement in court.

Mifly further clarified that holding a TIN does not necessarily mean a person must pay taxes but noted that it will be beneficial in the long run. As the government digitalizes public services, TINs will become an integral part of a unified system, streamlining access to various services and transactions.