By: Staff Writer

February 04, Colombo (LNW): The Samagi Jana Balawegaya (SJB) has launched a strong critique against the Government, accusing it of failing to uphold key economic promises and mismanaging critical financial and governance issues.

Addressing a media briefing, SJB MP Dr. Harsha de Silva highlighted concerns over tax policy reversals, questionable debt restructuring strategies, unfulfilled energy promises, and rising corruption scandals. He asserted that the administration’s failure to address these matters threatens both public trust and economic stability.

Dr. de Silva criticized the Government’s inconsistent tax policies, pointing out its reversal on an earlier promise to raise the tax threshold from Rs. 100,000 to Rs. 200,000. He accused officials of misleading the public, first pledging an increase and later denying any such commitment. This backtracking, he argued, has significantly eroded confidence in the administration’s economic direction.

Questioning the Government’s debt restructuring strategy, Dr. de Silva referenced President Anura Kumara Dissanayake’s recent statement that the country had two potential paths—either restructuring its debt or reviving the economy without it. Despite claims that Sri Lanka emerged from bankruptcy on December 21, he noted that the administration has yet to clarify how its policies will translate into real economic improvements for citizens. He further suggested that this uncertainty signals a lack of coherent economic planning.

Addressing energy policy, the SJB MP accused the Government of failing to deliver on its commitment to reduce electricity tariffs by 33%. He credited opposition efforts and public advocacy for pressuring the Public Utilities Commission of Sri Lanka (PUCSL) to implement recent tariff cuts.

Regarding fuel pricing, Dr. de Silva alleged that the Government is artificially maintaining current prices until the Provincial Council elections, despite incurring a Rs. 20 per litre loss. Given that the Ceylon Petroleum Corporation (CPC) controls 55% of the market, he warned that such price manipulation could lead to future tax hikes, particularly in vehicle taxation.

Beyond economic issues, Dr. de Silva raised serious corruption allegations, particularly concerning 323 shipping containers that reportedly left Colombo Port without proper inspection. He described this as part of a broader pattern of systemic corruption within Sri Lanka Customs.

He also called out the Secretary to the President, who has experience in investigating Customs corruption but has remained silent on this particular issue. Given his past role advising the World Customs Organisation on anti-corruption strategies, Dr. de Silva questioned the lack of action and suggested possible political interference.

Furthermore, he accused the Government of contradicting its ideological stance, arguing that it has embraced a “far-right” economic model despite its socialist rhetoric. He pointed to the National People’s Power (NPP), which previously challenged the Economic Transformation Act in the Supreme Court but has since incorporated it into its economic framework.

Dr. de Silva concluded by asserting that the Government’s inability to follow through on its promises, combined with rising corruption concerns, poses a serious challenge to its credibility. He called for greater transparency and accountability to restore public trust and ensure economic stability.

By: Staff Writer

February 04, Colombo (LNW): The Ceylon Chamber of Coconut Industries (CCCI) is urgently calling for government intervention to combat an alarming coconut shortage, which threatens both domestic consumption and Sri Lanka’s export-driven coconut sector.

 As a crucial part of the country’s culture and economy, coconuts play a key role in daily life while also generating vital foreign exchange revenue.

Sri Lanka typically requires 250 million coconuts per month, with 150 million consumed locally and the remaining 100 million used for exports.

 However, data from the Coconut Research Institute (CRI) reveals that coconut production has significantly declined, with a shortfall of 700 million coconuts recorded between 2021 and 2024. The situation is expected to worsen, with an additional deficit of 200 million coconuts projected between January and April 2025.

This sharp decline has driven prices up, placing financial strain on households and creating supply chain challenges for export manufacturers.The coconut sector is a major contributor to Sri Lanka’s economy, providing over 750,000 direct jobs and supporting countless others indirectly. The country earned $708 million from coconut product exports in 2023, and by November 2024, earnings had risen to $782 million, reflecting a 20% increase.

 By the end of 2024, total export revenue is expected to reach $850 million, the highest on record. Despite this success, the industry’s long-term stability is in jeopardy without immediate action.

According to Jayantha Samarakoon, President of the CCCI, the coconut shortage presents a dual crisis, affecting both households and exporters. He warns that without urgent intervention, Sri Lanka risks losing its competitive edge in global markets while also making coconuts unaffordable for local consumers.

The industry faces multiple challenges, including a lack of fertilizer due to high costs, inadequate irrigation, climate change impacts, pest attacks, and land fragmentation.Rising coconut prices have made this essential staple increasingly inaccessible, posing a risk of nutritional deficiencies among Sri Lankans.

Exporters are also struggling to fulfill international orders, which could damage Sri Lanka’s reputation as a reliable supplier.

To address the crisis, the CCCI has proposed several key measures. It recommends allocating LKR 1.5 billion from the CESS Fund to support farmers with subsidies for fertilizer, pest control, and replanting.

Soft loans should also be made available to enhance agricultural infrastructure, including water management and solar power adoption. Additionally, the CCCI urges consumers to reduce coconut waste and shift towards processed products such as coconut milk powder and desiccated coconut.

To stabilize the industry, the CCCI suggests temporarily permitting the import of 200 million coconuts or equivalent raw materials, such as copra chips and frozen kernels, to support local manufacturing. Establishing stringent quality standards for imported materials is also necessary to maintain product consistency for both domestic and export markets.

With global demand for coconut-based products reaching $30 billion annually, Sri Lanka has immense potential to expand its market share. The CCCI has set an ambitious goal of increasing export revenue to $1.5 billion by 2027, requiring an annual production of 4.5 billion coconuts.

Industry leaders, including Randeewa Malalasooriya of the Coconut Milk Manufacturers’ Association, believe this target is achievable through improved farming practices, reduced waste, and strategic imports of raw materials for value addition and re-export.

To sustain growth, Sri Lanka must enhance productivity and adopt innovative solutions. Industry stakeholders emphasize the need for a shift towards processed coconut products to curb wastage and ensure a stable supply. 

With the right policies in place, Sri Lanka has the potential to elevate its coconut industry, securing its place as a global leader while ensuring affordability for local consumers.

By: Staff Writer

February 04, Colombo (LNW): After nearly five years of restrictions, the Sri Lankan Government has officially lifted the temporary suspension on vehicle imports, allowing cars, vans, buses, trishaws, bicycles, and other non-motorized vehicles to re-enter the market. 

The decision, announced under Gazette Extraordinary No. 2421/44, took effect on February 1, 2025, marking the third phase of easing import controls imposed since early 2020.

While this move is expected to stimulate economic activity and address pent-up demand, the Government has introduced nine stringent conditions to regulate imports, control foreign exchange outflows, and enhance State revenue.

New Conditions for Vehicle Imports

According to a statement from the Finance Ministry, the regulations aim to encourage economic revival while protecting foreign exchange reserves and preventing excessive vehicle imports. The key conditions include:

Registered Importers: Only importers registered with the Department of Motor Traffic and relevant State institutions are allowed to bring in the required number of vehicles under the new regulations.

Individual Import Limits: Any individual or entity, aside from registered importers, is restricted to importing only one vehicle within a 12-month period.

Mandatory Registration: All imported vehicles must be registered with the Department of Motor Traffic in the buyer’s or importer’s name within 90 days from the Customs Declaration (CUSDEC) date.

Affidavit Requirement: The importer or buyer must submit an affidavit, including their Taxpayer Identification Number (TIN), along with necessary documents to register the vehicle.

Import Declaration: Individuals importing a vehicle must declare in the affidavit that they have not imported another vehicle within the last 12 months.

Late Registration Fees: If a vehicle is not registered within 90 days, the importer must pay a late fee of 3% of the Cost-Insurance-Freight (CIF) value per month, up to a maximum of 45% of the CIF value. No exemptions will be granted.

Vehicle Age Calculation: The vehicle’s age will be determined by the period between its date of manufacture and the date of the Bill of Lading or Airway Bill.

 Import Permit Restrictions: Importation using permits issued with concessionary duty rates is not allowed.

Violation Penalties: Vehicles imported in violation of these rules must be re-exported within 90 days at the importer’s expense.

Increased Import Duties

Despite lifting the import ban, the Government has imposed steep duties to regulate vehicle inflow. Under Gazette No. 2421/05, issued on January 27, 2025, a 20% Customs Import Duty (CID) is applied to all vehicles classified under Chapter 87 of the HS Codes. 

Additionally, an Extraordinary Gazette (No. 2421/43), issued on January 31, 2025, enforces a 50% surcharge on the existing CID, effectively raising the total import duty to 30% of the CIF value from February 1, 2025.

These measures are designed to increase government revenue and curb excessive imports, preventing undue strain on the country’s foreign exchange reserves.