June 01, Colombo (LNW): A nationwide initiative aimed at improving public understanding of taxation and encouraging broader compliance with revenue regulations is set to commence across Sri Lanka on June 02.
Branded as ‘National Tax Week’, the campaign is part of a government-led effort to deepen civic engagement in the country’s tax framework and enhance fiscal responsibility.
President Anura Kumara Dissanayake is expected to officially inaugurate the initiative at a ceremony held at the Presidential Secretariat, marking the start of a week-long programme spearheaded by the Inland Revenue Department (IRD).
Deputy Commissioner General of the IRD, P.K.S. Shantha, confirmed that the campaign will run until June 07 and will involve extensive outreach to inform the public about the advantages of timely tax payments and the procedures for acquiring a Taxpayer Identification Number (TIN).
The initiative is expected to involve mobile units, workshops, and collaboration with local authorities to reach individuals in both urban and rural areas.
The campaign follows recent regulatory changes which have made the TIN increasingly central to everyday transactions. Under new directives, a valid TIN is now mandatory for registering a motor vehicle under a personal name, and is also required to open certain categories of bank accounts.
These measures are intended to formalise economic activity and broaden the national tax base, especially in a context where many individuals and businesses have traditionally operated outside the formal revenue system.
More than ten million Sri Lankans have already secured their TINs, with the IRD offering online verification through its official website. Authorities believe this figure could rise significantly during the week-long campaign as awareness spreads and barriers to registration are addressed.
June 01, Colombo (LNW): Sri Lanka’s external economic outlook displayed notable resilience in April 2025, with sustained inflows from tourism and overseas remittances continuing to support the island’s balance of payments, according to a monthly update released by the Central Bank’s Economic Research Department.
Despite headwinds in global trade, the Central Bank reported a continuing surplus in the monthly current account for the fourth consecutive month, a sign of steady progress in stabilising the economy’s external position.
The strong inflow of foreign currency from returning tourists and migrant workers has played a central role in cushioning the country’s finances during a challenging period of recovery.
However, the report noted a widening of the merchandise trade deficit compared to the same period last year and the previous month. A key contributor to this imbalance was the surge in imports, which outpaced export growth.
April saw imports jump by 17.5 per cent year-on-year, with motor vehicle purchases alone accounting for US$ 134 million in expenditure. In contrast, merchandise exports grew by a more modest 10.4 per cent.
Whilst the increase in imports indicates a revival of domestic demand—often associated with economic recovery—it also reflects renewed strain on the country’s trade balance. Nonetheless, the Central Bank noted a favourable shift in the terms of trade, as a sharper fall in global import prices compared to export prices offered a degree of relief.
In the capital markets, the dynamics were more nuanced. Foreign participation in government securities saw a slight reversal, with a marginal outflow of US$ 12 million, following a net inflow in the preceding month.
In contrast, activity in the Colombo Stock Exchange showed signs of renewed interest from foreign investors, reversing the previous trend of capital flight with a modest net inflow of US$ 3 million into both primary and secondary equity markets.
June 01, Colombo (LNW): An official gazette has been released confirming the appointments of key leadership positions across numerous local government councils in Sri Lanka.
The document lists the individuals designated to serve as Mayors, Deputy Mayors, Chairpersons, and Vice-Chairpersons within local bodies across the island, following the recent conclusion of the Local Government elections.
The appointments stem from formal recommendations submitted by both political parties and independent groups that secured control over their respective local authorities during the polls.
These selections were compiled by the Election Commission, which has since moved to officially publish the names, aligning them with administrative districts for greater clarity.
The newly confirmed office-bearers represent a range of political affiliations, reflecting the diverse electoral landscape that emerged from the local contests. Each name listed in the gazette has been vetted and finalised based on the majority positions achieved by the respective parties and groups within the relevant councils.
Additionally, the list of elected and nominated councillors for each local authority has also been made public. This follows procedural requirements to ensure transparency and allows constituents to familiarise themselves with their local representatives ahead of the official start of duties.
The term of office for all local government institutions has been set to begin tomorrow (02), as outlined in a prior notification issued by the Ministry of Public Administration, Provincial Councils, and Local Government on February 17.
June 01, Colombo (LNW): Health authorities in Sri Lanka have confirmed the detection of two recently identified Omicron subvariants—designated LF.7 and XFG—within the country, aligning with wider regional patterns of Covid-19 evolution observed across parts of Asia.
The discovery was made following laboratory analysis carried out by the Medical Research Institute (MRI) in Colombo. The samples, collected from multiple medical facilities across the island, underwent genomic sequencing which confirmed the presence of the emerging sublineages.
Dr Jude Jayamaha, a senior virology expert attached to the Ministry of Health and the MRI, stated that whilst these subvariants have indeed entered local circulation, there is currently no indication of heightened risk that would warrant public panic.
According to Dr Jayamaha, viral mutations remain a natural and anticipated aspect of SARS-CoV-2’s ongoing adaptation process.
Although no surge in hospitalisations or severe illness has been linked to these new subvariants, public health professionals continue to monitor the situation closely.
Enhanced genomic surveillance and routine viral sequencing remain core components of the government’s response, aimed at rapidly identifying any significant shifts in transmissibility or disease severity.
In light of the findings, officials are urging the public—particularly vulnerable groups such as the elderly, expectant mothers, and individuals with underlying health conditions—to adhere to basic protective measures.
These include the wearing of face masks in crowded settings, maintaining good hygiene practices, and avoiding poorly ventilated indoor spaces whenever possible.
Meanwhile, in a related development, medical investigations have confirmed that a one-and-a-half-month-old infant who died recently at Galle National Hospital had contracted the Covid-19 virus. The diagnosis was confirmed following post-mortem testing by the MRI. However, hospital authorities clarified that the infection was not attributed to either of the newly identified subvariants.
Whilst this isolated case has prompted renewed calls for attentiveness to respiratory symptoms in children and infants, health officials stress that overall case numbers remain manageable at this time.
The Ministry of Health has reiterated that it stands ready to escalate response measures should the epidemiological situation change.
June 01, Colombo (LNW): In a decision that brings a measure of relief to motorists and transport operators, the Ceylon Petroleum Corporation (CEYPETCO) has confirmed that fuel prices across the board will remain unchanged for the month of June 2025.
According to the statement issued by the state-run fuel supplier, existing prices for both petrol and diesel will continue through June without alteration.
This includes Auto Diesel at Rs. 274 per litre, Super Diesel at Rs. 325, Petrol 92 Octane at Rs. 293, Petrol 95 Octane at Rs. 341, and Kerosene at Rs. 178.
June 01, Colombo (LNW): Prevailing showery condition in the southwestern part of the island is expected to reduce gradually from today (01), the Department of Meteorology said in its daily weather forecast today.
Showers or thundershowers will occur at times in Western, Sabaragamuwa, Central and North-western provinces and in Galle and Matara districts.
Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts during the afternoon or night.
Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central and North-western provinces and in Hambantota and Trincomalee districts.
The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain: Showers or thundershowers will occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle. Showers or thundershowers may occur at a few places over the other sea areas around the island.
Winds: Winds will be south-westerly and wind speed will be (30-40) kmph. Wind speed can increase up to 50 kmph at times in the sea areas off the coast extending from Chilaw to Kankasanthurai via Puttalam and Mannar and from Galle to Pottuvil via Hambantota.
State of Sea: The sea areas off the coast extending from Chilaw to Kankasanthurai via Puttalam and Mannar and from Galle to Pottuvil via Hambantota will be rough at times.
The wave height (about 2.0–2.5 m) may increase in the sea areas off the coast extending from Puttalam to Pottuvil via Colombo, Galle and Hambantota (this is not for land area).
Naval and fishing communities are requested to be vigilant in this regard.
Temporarily strong wind gust and very rough seas can be expected during thundershowers.
Once polluted and suffering from depopulation, Naoshima has become Japan’s hottest contemporary art enclave – and there are signs that life there may be finally rebounding.
Shinichi Kobayashi has idyllic memories of growing up on Naoshima, one of the nearly 3,000 islands scattered across Japan’s Seto Inland Sea.
“We would go clam digging,” said the 75-year-old, who became the island’s mayor in 2018. “During the summer, I would spend entire days swimming in the sea, catching turban shells and fish, getting deeply tanned.”
“I don’t recall seeing any foreign visitors,” he added.
Kobayashi’s home island is no longer off the tourist radar – thanks to the power of modern art. Since the 1989 launch of what has become Benesse Art Site Naoshima – a multi-island art initiative initiated by billionaire Sōichirō Fukutake – more than 500,000 visitors now flock annually to Naoshima, whose fishing villages, rice fields and craggy coastlines have become the canvas for mesmerising art installations and ambitious museums. In 2010, the Setouchi Triennale launched. The contemporary art festival – which is now one of Japan’s foremost international art events – attracts roughly one million visitors to the region each Triennale season. The sixth edition kicked off on 18 April this year and will run until 9 November; the longest Setouchi Triennale ever.
Once polluted and facing depopulation, Naoshima now teems with edgy art installations (Credit: Alamy)
Forty years ago, few would have imagined such a transformation. In the early 20th Century, Naoshima had cemented its reputation as a copper smelting hub, but by the 1980s, it was heavily polluted; the raw, rocky land around the Mitsubishi Materials industrial plant denuded of vegetation. The population dwindled dramatically as the young left to seek opportunities in larger cities.
Fukutake’s father, publishing magnate Tetsuhiko Fukutake, and Naoshima’s then-mayor, Chikatsugu Miyake, aspired to revitalise the bleak area by founding a children’s campground. Tetsuhiko died before the project was completed, leaving it to his son. Shocked by Naoshima’s pollution, the younger Fukutake purchased a large swathe of the island’s unblighted south side. His new plan: to transform the region by erecting attractive museums against its serene coastal landscapes. To enact his vision, he tapped Osaka-born architect Tadao Andō, who had become known for designing buildings that blended seamlessly into their surroundings.
“I was surprised by the idea and thought it would be difficult to achieve,” Andō said in a 2018 interview where he and Fukutake discussed the project’s origins. “It was so inconvenient! Who would come here?”
“This project began as an act of resistance,” explained Fukutake in the interview. “It was my conscious intention to build a kind of heaven on Earth – the very first paradise that harmonises art, nature and the local community.”
Since 1992, the Benesse House Museum has been a haven for the works of today’s leading contemporary artists (Credit: Alamy)
Naoshima was named one of BBC Travel’s 25 best places to visit in 2025, a list highlighting destinations that are not only welcoming visitors, but using tourism as a force for good. See the full list here.
The island’s evolution into a globally renowned open-air museum and international contemporary arts hub was all but assured in 1994, when Yayoi Kusama’s yellow and black-spotted Pumpkin was added to the landscape’s growing collection of public artworks. This iconic work has since become emblematic of Naoshima itself.
“[The] initial goal wasn’t to promote tourism,” said Soichiro Fukutake’s son, Hideaki, who now helms the Fukutake Foundation. “But rather to revitalise the region through art and help locals feel a renewed sense of pride in their hometown.”
But the mission hasn’t just been about building anew. Since 1998 and the start of the Art House Project in the nearby fishing village of Honmura, “using what exists to create what is to be” has been a guiding principle, leading to many defunct buildings on Naoshima and the neighbouring islands of Teshima and Inujima to be reborn as art. These include two projects by artist Shinrō Ōtake: Haisha, an old dentist’s building transformed with collage, reclaimed materials and a partial giant copy of the Statue of Liberty; and Naoshima Bath “I♥︎湯”, a public bathhouse now plastered in a patchwork of patterned tiles on the exterior to the full-scale model of an elephant striding across the dividing wall between the male and female bathing sections.
The dynamic Naoshima Bath “I♥︎湯” installation started its life as an abandoned bathhouse (Credit: Alamy)
Some locals were initially sceptical about the general appeal of such artworks. In the 1980s Toshio Hamaguchi worked for Naoshima’s town office and guided executives from Fukutake’s company around the island when the International Camp was first being planned. “I did not expect that we would attract many people by such a project, and particularly by art,” recalls the retiree. “However, we have so many visitors thanks to art now.”
Since his initial commissions on Naoshima, Andō has designed nine other projects on the island, including the Chichu Art Museum, of which a large portion is built directly into the earth; and the Naoshima New Museum of Art, opening 31 May, which will showcase contemporary art from Japan and Asia. The inaugural exhibition – titled From the Origin to the Future – will feature works by the likes of Japan’s Takashi Murakami and Makoto Aida, Cai Guo-Qiang from China and the Korean artist Do Ho Suh.
Like the Chichu Art Museum, the Naoshima New Museum of Art blends seamlessly with the environment by burying two of its three storeys beneath the ground. “It’s one of the most ambitious and exciting projects we’ve undertaken,” said Hideaki Fukutake.
As mayor, Kobayashi notes the economic benefits: “Thanks to the increasing number of visitors, guesthouses and restaurants have flourished, helping make everyday life more vibrant for the locals.”
He added: “That said, we’ve also seen some changes, like more people locking their doors, which wasn’t common in the past… For me, what matters most is that the residents can live cheerfully, energetically and happily.”
Threatening this is the island’s persistent issue of depopulation: Naoshima currently has 3,000 residents, around half the number it had in the 1980s. “Personally, I strongly wish to increase it,” said Kobayashi. “Even if just by one person.”
However, there are glimmers of hope; a 2024 Asahi Shimbun article cited that though the island’s population was in decline in 2022, the number of newcomers has risen slightly but steadily each year since. Over the past five years, 500 people – mainly married urban couples in their 30s and 40s – moved to the island, attracted by its unique artsy beauty. Many Benesse Art Site Naoshima staff have relocated to the island while others have come to fill jobs in the booming hospitality industry – so much so that Naoshima is now facing a housing shortage. Mitsubishi Materials has also significantly cleaned up its copper smelting operations, improving the overall quality of life.
Speaking at a conference on Naoshima in 2023, Eriko Ōsaka, a respected curator and general director of The National Art Center, Tokyo, credited Benesse Art Site Naoshima organisers with changing the island’s image “from being a negative one to a positive one through the power of art”.
In Ōsaka’s opinion, visitors to Naoshima “can experience serendipity that they can find nowhere else and discover something unknown within themselves”. For her, the success of Benesse Art Site Naoshima means that some of those islanders who have moved away “will come back one day”.
Sri Lanka is set to revamp its outdated gambling laws with the introduction of a new bill aimed at creating a Gambling Regulatory Authority.
Backed by President Anura Kumara Dissanayake in his capacity as Finance Minister, the legislation seeks to modernize the country’s gaming sector and replace three antiquated laws—the Horse Racing Betting Ordinance, the Gambling Ordinance of 1889, and the Casino Ordinance.
The proposed Authority will serve as the sole independent regulator overseeing both land-based and online gambling operations, including offshore activities in the Colombo Port City. A Cabinet statement on April 21 emphasized the new body’s role in promoting transparency, enhancing tax revenue, and curbing illegal gambling.
The draft legislation, which has been cleared by the Attorney General and gazetted ahead of parliamentary debate, also mandates the Authority to enforce compliance, prevent money laundering, and promote ethical practices in the gaming industry.
Amid these regulatory changes, Sri Lanka’s casino sector is expanding with significant new investments. Melco Resorts & Entertainment Ltd, a global casino operator, is slated to open a casino in Colombo’s upcoming City of Dreams Sri Lanka resort in late 2025.
Melco, via its subsidiary Bluehaven Services (Pvt) Ltd, secured a 20-year casino license effective April 1, 2024, and plans to invest $125 million into the gaming facilities as part of a broader $1 billion project led by John Keells Holdings PLC.
Additionally, two joint ventures have been approved from ten applications submitted to the Ministry of Finance, reflecting growing interest in the sector. One key partnership is between Sri Lanka’s Golden Island Hospitality Ltd and India’s Majestic Group Hotels and Casinos.
The duo received a license on August 1, 2024, to launch the Majestic Pride Casino at the Colombo Lotus Tower. The tower, the tallest in South Asia, will now serve not just as a broadcasting hub but also as a tourism and entertainment hotspot.
The government has introduced stringent licensing requirements for new entrants. According to a 2024 gazette notification, casino operators must invest at least $250 million to qualify, paying a Rs. 10 billion license fee and an annual renewal fee of the same amount. Operators investing $500 million or more will pay a reduced Rs. 5 billion license fee but still face a Rs. 10 billion annual renewal charge.
These reforms are part of Sri Lanka’s broader push to grow its tourism and entertainment sectors while tightening control over gambling operations. Existing casinos have already been subjected to revised fees, including a five-year renewable charge of Rs. 500 million and a 15% tax on revenue.
Plans are also underway to raise the local entry fee from $50 to $200 over the next three years to discourage local gambling.Currently, five licensed casinos operate in Sri Lanka, three owned by Dhammika Perera and two by Ravi Wijeratne.
In a significant move to modernize trade processes and boost revenue efficiency, Sri Lanka Customs is set to streamline cargo clearance procedures through the introduction of several digital tools and initiatives. This includes the implementation of an automated risk management system aimed at fast-tracking low-risk consignments while improving the detection of high-risk shipments.
Director General of Customs, P.B.S.C. Nonis Arukgoda, announced that the new risk management system will identify potentially problematic cargo, allowing other shipments to be cleared more efficiently. “Once we identify these consignments, we can fast-track the release of others. By automating the system, we improve our detection rates,” he said at a recent press briefing.
Another major innovation being rolled out is TrackMyCusDec, a tracking platform that enables traders and stakeholders to monitor the clearance status of their consignments in real time. In addition, a motorcycle verification app is being launched to enhance consumer protection. With this app, prospective vehicle buyers can verify whether a motorcycle has been legally imported and if taxes have been paid, simply by entering the chassis number. Arukgoda noted that this would deter the sale of smuggled or untaxed vehicles in the local market.
These customs reforms are part of broader efforts linked to National Tax Week, which begins at 9:30 a.m. on Monday, June 2. Senior Additional Secretary to the President, U.D.N. Jayaweera, stated that the initiative aims to enhance public understanding of tax compliance and foster a responsible tax-paying culture.
“The campaign is designed to shift negative perceptions about taxation, increase compliance, and highlight how tax revenue supports national development,” Jayaweera said. Throughout the week, the public will be educated on the allocation of tax funds and the tangible benefits they help deliver to Sri Lankans.
National Tax Week is a collaborative effort spearheaded by the Presidential Secretariat, in partnership with the Revenue Administration Reforms and Modernisation Task Force, the Ministry of Finance, and key tax revenue-generating bodies: the Inland Revenue Department, Customs Department, and Excise Department.
Jayaweera emphasized that taxation must be rooted in voluntary compliance rather than coercion. He urged all liable citizens, including those yet to register, to fulfill their obligations. The Tax Shakthi programme will serve as a key educational platform during the week, providing guidance on tax payments, reporting requirements, and the importance of compliance.
These reforms and awareness efforts mark a concerted push by the government to enhance transparency, improve tax collection, and build public trust in fiscal governance.
The Sri Lankan government is considering scaling back the generous tax holidays and exemptions offered to mega development projects under the Strategic Development Act (SDA), including those linked to the Colombo Port City. This move comes in response to recommendations by the International Monetary Fund (IMF), which has urged the country to revise its fiscal policies to enhance revenue collection and ensure sustainable debt repayment.
Currently, investments under the Colombo Port City enjoy sweeping tax concessions, such as exemptions from customs duties, VAT, and port and airport development levies. Additionally, the Port City Commission, empowered by the Port City Act, can grant tax exemptions for up to 40 years on a range of taxes, including income tax, entertainment tax, and the casino regulation levy, for businesses deemed to be of strategic national interest.
However, the IMF has flagged these wide-ranging concessions as a major hindrance to Sri Lanka’s fiscal recovery. The organization recommends shortening the duration of tax holidays, reducing them from the current 25-year period to a more moderate timeframe, and removing exemptions for projects not aligned with national strategic priorities. These suggestions are part of a broader governance reform framework aimed at streamlining investment incentives and strengthening economic resilience.
Meanwhile, political concerns have added complexity to the issue. Former Minister Patali Champika Ranawaka has alleged that Chinese companies, which supported President Anura Kumara Dissanayake’s recent visit to China, are lobbying for additional tax breaks. He claims this quid-pro-quo expectation is delaying the release of the next IMF funding tranche, as the IMF is reluctant to back tax relief that appears politically influenced.
Ranawaka also criticized the President’s recent travel to Vietnam, which included a return on a private jet, hinting that further undisclosed tax concessions might be linked to such trips. He warned that such political deals could impose long-term financial burdens on the country.
In line with the IMF’s 2023 Governance Diagnostic Assessment, which called for the repeal of the SDA, the Finance Ministry now plans to suspend the Act and replace it with a new Priority Investment Project Act. This legislation would introduce transparent and rules-based eligibility criteria to ensure tax incentives are effectively targeted and limited in duration.
Amendments to the SDA are expected to be presented in Parliament by August 2025. These will also impose new taxes on investors in the Colombo Port City and restrict the scope of exemptions. All investment proposals will be subject to clearer evaluation criteria, aiming to balance investor interest with national revenue goals.
The IMF has emphasized that such reforms are essential to prevent further revenue losses and to stabilize Sri Lanka’s economy amid its ongoing financial crisis. The government plans to fully implement the revised framework, including new rules for Port City investment eligibility, by the end of September 2025.
