By: Staff Writer

December 27, Colombo (LNW): Sri Lanka’s public sector must embrace digitalization to unlock its economic potential, urged WSO2 Founder and CEO Sanjiva Weerawarana during a Central Bank lecture on “Unleashing the Digital Economy in Sri Lanka.”

 Highlighting the inefficiencies in the current system, Weerawarana called for radical reforms, including capping cash transactions at Rs. 2.5 lakhs and phasing out Rs. 5,000 notes to foster transparency and drive digital adoption.

While Sri Lanka boasts high National ID and birth certificate coverage, efforts to implement a robust digital identity system have stagnated for over two decades. Weerawarana criticized the slow progress and emphasized the importance of user-friendly, scalable solutions to overcome authentication challenges.

The reliance on cash remains a significant barrier, with 77% of the Rs. 1.26 trillion in circulation held outside the banking system. Although there are 19 million debit cards in use, digital payment platforms like Just Pay and Lanka QR remain underutilized. Government payments totaling Rs. 330 billion annually also highlight the untapped potential of digital systems.

Weerawarana urged the adoption of scalable digital ID systems, streamlined payment platforms, and reduced cash dependency to formalize the economy and promote sustainable growth. By bridging the gaps in the current system, Sri Lanka could unlock significant opportunities in its journey toward digital transformation.

While 19 million debit cards are active, only 1.9 million credit cards are in use, with unique holders likely fewer due to multiple cards. Additionally, government payments total Rs 330 billion annually, but digital payment platforms like Just Pay and Lanka QR remain underutilized.

“Payment is the most fundamental component of an economy—moving money around in some form is essential,” Weerawarana stressed.

He highlighted LankaPay’s “human bridge” initiative, which enables government departments to integrate digital payments even without advanced system setups, as an example of bridging gaps in the current ecosystem.

Weerawarana’s recommendations to limit cash transactions and phase out Rs 5,000 notes aim to drive digital adoption and formalize the economy.

By embracing these measures, combined with scalable digital ID systems and wider adoption of payment platforms, Sri Lanka could unlock significant economic potential.

Weerawarana’s analysis of the current system showed that even with outdated forms of National Identity Cards which were susceptible to forgery there was limited mass scale identity fraud in the country.

By: Staff Writer

December 27, Colombo (LNW): Sri Lankan President Anura Dissanayake has formally expressed the country’s desire to join BRICS, according to Pakeer Amza, Sri Lanka’s ambassador to Moscow.

The request, conveyed in a letter to Russian President Vladimir Putin in October, highlights Colombo’s intent to become part of the influential bloc.

Sri Lanka has also sought support from other BRICS members to secure its membership by 2025, emphasizing its commitment to the group’s vision of multilateral cooperation.

In October 2024, Foreign Minister Vijitha Herath announced Sri Lanka’s decision to apply for BRICS membership and join its affiliated New Development Bank (NDB).

 Herath explained that Sri Lanka views BRICS as an essential platform to foster partnerships promoting sustainable development, peace, and global cooperation, aligning with the principles of the UN Charter.

The country has since reached out to several BRICS leaders, including Indian Prime Minister Narendra Modi, for support in its bid.

BRICS, established in 2006, initially comprised Brazil, Russia, India, China, and South Africa. Over time, it has expanded to include Egypt, Ethiopia, Iran, the UAE, and Saudi Arabia, solidifying its position as a counterbalance to Western-led global economic dominance.

 With Russia presiding over BRICS in 2024, the bloc has gained increasing geopolitical significance by challenging the dominance of the U.S. dollar and promoting alternatives to existing global economic frameworks.

Sri Lanka’s engagement with BRICS has been active in recent months. A delegation led by Foreign Secretary Aruni Wijewardena participated in the BRICS summit in Russia, formally submitting an application for membership.

However, during the summit, BRICS decided against further expansion, postponing Colombo’s aspirations.

Despite this setback, Herath noted that Sri Lanka’s application remains under consideration, with the Russian Embassy affirming that new bids will be reviewed through consensus among current members.

Parallel to its BRICS membership pursuit, Sri Lanka has sought to join the NDB, a multilateral institution established by BRICS in 2015.

The NDB mobilizes resources for infrastructure and sustainable development projects in emerging economies. While full BRICS membership may take time, Colombo hopes to leverage the NDB as a stepping stone to align with the bloc’s economic initiatives.

Herath highlighted that countries like Bangladesh, though not BRICS members, are part of the NDB, suggesting a similar path for Sri Lanka.

The Foreign Ministry stated on November 10, 2024, that the government remains optimistic about future opportunities to join BRICS. Cabinet discussions are ongoing to assess the benefits of NDB membership, with the Finance Ministry tasked with evaluating its potential impact.

 Meanwhile, Sri Lanka continues to engage diplomatically with BRICS nations, seeking their backing for its long-term integration into the bloc.

As BRICS evolves into a more significant player on the global stage, Sri Lanka’s application reflects its strategic ambition to align with emerging economic powers.

While membership may not be immediate, Colombo’s pursuit of inclusion underscores its commitment to advancing national development through multilateral partnerships.

By: Staff Writer

December 27, Colombo (LNW): The Excise Department has introduced a proposal to resolve the longstanding tax arrears issue with W. M. Mendis and Co. Ltd., whose production license was recently suspended for defaulting on Rs. 5.8 billion in taxes.

 Excise Commissioner General (ECG) Udaya Kumara Perera revealed that the proposal entails the company settling 50% of the arrears—amounting to Rs. 3 billion—as a prerequisite to reactivating its license. 

This initiative aims to recover significant revenue for the state while also protecting the livelihoods of over 600 employees and their 1,500 dependents.

According to ECG Perera, this plan is the most pragmatic solution to address the tax default while enabling the company to resume operations. “We must balance recovering the government’s dues with safeguarding jobs and the economy.

This proposal provides a pathway for Mendis to settle its arrears and return to business while ensuring compliance going forward,” he explained.

The company, which operates three excise manufacturing licenses for its facilities in Welisara, Moragalla, and Kalkuda, has been given the opportunity to outline a repayment plan for the initial Rs. 3 billion settlement. 

Once this payment is made, the license will be reactivated, and subsequent monthly renewals will be conditional on the settlement of new production taxes.

The suspension of Mendis’ license on December 4th followed repeated warnings over the past year, which the company failed to heed.

The ECG emphasized that the Department of Excise had no choice but to take this step to address the staggering tax default. 

However, Perera noted that the current proposal allows the company to demonstrate its commitment to resolving the issue and moving forward in compliance with regulations.

In parallel, the Excise Department is preparing for the renewal of approximately 2,000 excise permits for 2025.

To facilitate this process, the Commissioner General has requested the Inland Revenue Department (IRD) to submit a comprehensive report on permit holders who have paid their taxes. 

So far, the IRD has forwarded 1,636 applications along with tax clearance reports, with an additional 232 reports expected shortly. ECG Perera stressed that permits will only be renewed for applicants whose tax payments are verified by the IRD. 

This measure aims to ensure fairness and efficiency while encouraging compliance among excise permit holders.With 4,500 excise permits required nationwide for the sale of alcoholic beverages, the tax compliance process remains a critical component of ensuring smooth operations in the sector. 

The proactive steps taken by the Excise Department highlight its commitment to maintaining transparency, accountability, and economic stability in the industry.

By: Isuru Parakama

December 27, Colombo (LNW): President Anura Kumara Dissanayake has expressed his profound sadness and extended heartfelt condolences following the passing of Dr Manmohan Singh, the former Prime Minister of India.

In a special message shared via Twitter, the President conveyed his sympathies to the people of India, Dr Singh’s family, and his many admirers across the globe.

The message, which was also posted on behalf of the people of Sri Lanka, reads:

“On behalf of the people of Sri Lanka and myself, I extend my deepest condolences to the Republic of India, to Dr. Manmohan Singh’s family, and to his innumerable admirers worldwide. Dr Singh was a visionary leader whose influence reached beyond national borders. His tenure as Prime Minister from 2004 to 2014 saw significant transformative policies, including the Right to Education Act and the Mahatma Gandhi National Rural Employment Guarantee Scheme, both of which reflected his unwavering commitment to fostering inclusivity and equity in society.

A dedicated proponent of international cooperation, Dr. Singh played a key role in forging robust partnerships and was instrumental in the creation of coalitions such as BRICS. His diplomatic efforts, including the landmark Indo-US nuclear agreement, stand as testament to his remarkable leadership and global outlook. Dr Singh’s humility, intellect, and dedication to public service will continue to inspire generations to come. May his soul rest in peace and find eternal solace.“

The President’s heartfelt tribute was shared by the President’s Media Division (PMD).

December 27, Colombo (LNW): The National Zoological Gardens Department has reported a remarkable surge in its income, with a 150 per cent increase compared to the previous year, according to Director General Ranjana Marasinghe.

As of December 23, 2024, the department has generated Rs. 1.42 billion in revenue, with expectations to reach Rs. 2 billion by the close of the year.

Marasinghe revealed that the Pinnawala Elephant Orphanage has been the primary contributor to this impressive growth, accounting for 61.4 per cent of the total revenue, amounting to Rs. 876 million.

This popular attraction continues to draw both local and international visitors, bolstering the overall income of the zoological parks.

In addition to Pinnawala, the Dehiwala Zoological Gardens has contributed 22 per cent of the revenue, while the Ridiyagama Safari Park and the Pinnawala Open Zoo have provided 9 per cent and 7.5 per cent, respectively.

These figures highlight the growing appeal of Sri Lanka’s wildlife conservation and tourism sector, with a diverse range of parks and sanctuaries attracting a steady flow of visitors.

The highest revenue months were recorded in January, February, March, April, and August, with January standing out as the most profitable month of the year.

The department remains optimistic about sustaining this upward trend in the coming months.

December 27, Colombo (LNW): Beneficiaries of the Aswesuma social welfare scheme can begin receiving their outstanding payments from today, directly through their bank accounts, the Welfare Benefits Board (WBB) announced.

This initiative follows efforts to ensure the timely disbursement of overdue funds to those eligible under the first phase of the scheme.

According to Jayantha Wijeratne, Chairman of the Welfare Benefits Board, a total of 212,423 qualifying families will benefit from the transfer of these outstanding payments.

Over Rs. 1.3 billion has been allocated for the pending disbursements, with the WBB facilitating the deposit of the funds into the designated bank accounts of the recipients.

This move is expected to provide financial relief to the families awaiting their payments under the Aswesuma scheme, which aims to improve the welfare of vulnerable households across Sri Lanka.

The WBB has reassured recipients that all necessary steps have been taken to ensure the smooth and efficient transfer of funds.

December 27, Colombo (LNW): Several prominent Sri Lankan political leaders have expressed their heartfelt condolences following the death of former Indian Prime Minister Manmohan Singh, who passed away yesterday at the age of 92.

The tributes reflect the deep respect and admiration Singh commanded across South Asia, with his legacy as an economist and leader continuing to resonate.

Former President Mahinda Rajapaksa took to social media platform ‘X’ to remember Singh as a visionary economist and a pivotal figure in India’s economic transformation. Rajapaksa described Singh as the “architect of India’s economic liberalisation,” noting that his far-reaching contributions helped to shape a new and prosperous era for India.

Deeply saddened by the passing of former Indian Prime Minister Dr. Manmohan Singh. A visionary economist and the architect of India’s economic liberalization, his contributions shaped a new era for India. My heartfelt condolences to his family, friends, and the people of India. pic.twitter.com/5n1DtCMyL9

— Mahinda Rajapaksa (@PresRajapaksa) December 26, 2024

He extended his deepest sympathies to Singh’s family and the people of India, acknowledging the loss of a leader who had a profound impact on the region’s economic landscape.

Similarly, Opposition Leader Sajith Premadasa shared his sorrow on ‘X,’ emphasising that Dr. Singh’s economic reforms had not only transformed India but also inspired neighbouring countries.

Deeply saddened by the passing of Dr. Manmohan Singh, a visionary leader whose economic reforms transformed India and inspired the region. His commitment to progress and integrity will continue to inspire us. Our thoughts are with his family and the people of India during this…

— Sajith Premadasa (@sajithpremadasa) December 27, 2024

Premadasa highlighted Singh’s unwavering commitment to progress and integrity, qualities that would continue to inspire generations to come. He offered his condolences to Singh’s family and to India, sending thoughts of solidarity during this moment of grief.

M.A. Sumanthiran, former Member of Parliament for the Tamil National Alliance, also paid tribute to Singh, remembering him as “a gentleman par excellence.” Sumanthiran recalled Singh’s sincere efforts towards addressing the Tamil National Question in Sri Lanka, noting that Singh’s diplomatic endeavours and leadership left a lasting impression on Sri Lankan politics.

Our most sincere condolences to the people of India on the demise of their former Prime Minister Dr. Manmohan Singh. A gentleman par excellence, the architect of modern India’s economic resurgence, worked sincerely to solve the Tamil National Question in Sri Lanka. pic.twitter.com/XqbtbIPvEr

— M A Sumanthiran (@MASumanthiran) December 27, 2024

In his message, Sumanthiran offered his sincere condolences to the people of India, acknowledging Singh’s role in modernising India’s economy while also working towards regional stability.

Manmohan Singh’s passing marks the end of an era in Indian politics. Admitted to the emergency department of the All India Institute of Medical Sciences (AIIMS), Singh passed away despite efforts to revive him.

Singh served as Prime Minister of India for a historic 3,656 days, from May 22, 2004, to May 26, 2014. During his tenure at the helm of the Congress-led United Progressive Alliance (UPA), he became the third-longest serving Prime Minister in Indian history, surpassed only by Jawaharlal Nehru and Indira Gandhi.