By: Staff Writer

July 21, Colombo (LNW): The Sri Lanka Computer Emergency Readiness Team (SL CERT) has initiated an investigation into 40 government information systems in order to determine if they have been compromised by the mass global IT outage in software provided by a leading US-based cyber security firm.

enior Information Engineer of Sri Lanka CERT Charuka Damunupola confirmed that reports have been called to ascertain whether the relevant government information systems operate using Microsoft applications, which have been affected by the massive outage took place.

Furthermore, Mr. Damunupola stated that initial findings indicate four private institutions in Sri Lanka have been impacted, while unofficial reports suggest that two Sri Lankan banks are among the affected entities.

peaking to Ada Derana, he asserted that a rigorous investigation is underway to assess the full scope of the impact.

CrowdStrike, a cybersecurity firm with thousands of customers globally, admitted on Friday (19) that a defective software update had caused the major IT outage that is bringing airports, banks, hospitals, media outlets, and businesses to a halt worldwide.

Reports of outages began streaming in from around the globe early on Friday, with broadcaster Sky News in the UK forced off the air for several hours.

However, the CEO of CrowdStrike told CNN news agency that the IT issue causing a global outage has been identified and that a fix has been deployed.

CrowdStrike has advised customers to refer to its support portal for updates, and for organisations who use its services to continue communicating with CrowdStrike representatives “through official channels”.

Earlier today, SriLankan Airlines announced that its internet booking services have been fully restored as of 08:30 GMT (02.00 pm local time), following a global outage of third-party service providers that affected the airline’s online booking services.

“We understand that this may have impacted the experience of some of our passengers, and we sincerely apologize for any inconvenience caused,” the airline said in a brief statement.

Passengers are instructed to contact the Global Contact Centre at +94 19733 1979 for any further assistance with existing or new bookings, it added.

The National Center for Cyber Security in Sri Lanka says four information technology companies in Sri Lanka have been affected because of the global outage.

Sri Lanka Computer Emergency Readiness Team, which is known as Sri Lanka CERT, says that so far only four companies have informed them of being affected and the center attributed them to a problem with the cybersecurity platform CrowdStrike.

Charuka Damunupola, lead information security engineer at Sri Lanka CERT, says those companies were using CrowdStrike software and their systems “are in failure mode.”

By: Staff Writer

July 21, Colombo (LNW): Sri Lankan exporters are strongly opposing the proposed elimination of the Simplified Value Added Tax (SVAT) system, citing significant negative impacts on the export sector and the economy.

The National Chamber of Exporters of Sri Lanka (NCE) has highlighted that the scheduled removal of SVAT in April 2025 will force exporters to pay VAT upfront on purchases, which will strain their cash flow and tie up essential capital. The NCE argues that SVAT should remain until an effective VAT refund mechanism is established.

The current VAT system is criticized for its inefficiencies and slow refund processes, which burden exporters with additional paperwork and prolonged delays in receiving refunds.

This situation exacerbates cash flow problems and creates financial uncertainty, potentially eroding exporters’ competitive edge by increasing costs and complexities. Smaller businesses, with less financial resilience, are expected to be disproportionately affected, risking their viability and growth.

The SVAT system was initially introduced to mitigate challenges faced under the traditional VAT framework.

It defers VAT payments and simplifies the refund process, allowing exporters to avoid upfront financial strain, better allocate resources, and streamline administrative processes.

 This system has enabled exporters to maintain competitive pricing in global markets and ensured prompt VAT crediting, thereby providing financial stability.

The finance ministry plans to replace SVAT with a more efficient VAT refund mechanism as part of an economic reform program approved by the International Monetary Fund (IMF).

This program aims to speed up valid VAT refunds and abolish the SVAT system, aligning with broader fiscal reforms.

A parliamentary resolution to revise the VAT Act and abolish SVAT is expected to be presented soon, with official documents suggesting that reactivating the standard VAT could boost tax revenue by approximately 1.2 percent of GDP.

During a recent meeting with the Parliamentary sectoral oversight committee on economic affairs, representatives from various Sri Lankan exporters’ associations emphasized the need for a reliable VAT refund mechanism.

Finance Ministry officials assured that the government would implement an efficient tax system with a proper refund mechanism akin to those in developed countries.

Historically, the SVAT system was introduced to address significant delays in the VAT refunding process, which could take up to 18 months under the standard system.

The RAMIS system, established in 2016, aimed to improve this, but a proper refund system is still lacking. Exporters have also reported corrupt practices involving third-party groups and officials demanding commissions and bribes for expedited VAT refunds.

Overall, Sri Lankan exporters are advocating for the retention of the SVAT system until a robust and efficient VAT refund mechanism is in place. They argue that this is crucial for maintaining their financial stability and competitive edge in the international market.

By: Staff Writer

July 21, Colombo (LNW): Leading business magazine LMD reports in its July edition that businesses are navigating both challenges and opportunities amid economic turbulence. The LMD-PEPPERCUBE Business Confidence Index (BCI) poll from June highlights widespread apprehension about the economic landscape.

According to the magazine, 30% of respondents to the monthly poll expressed optimism about the economy improving over the next 12 months, consistent with May’s results.

More than one in four executives (26%) expect the economy to remain the same, also mirroring the previous month. Meanwhile, 44% believe the economy will deteriorate, reflecting sentiments reported in May.

On the sales front, the magazine reports a slight improvement in outlook, with 34% of salespeople anticipating an increase in sales volumes over the next 12 months, marking a three-point rise from May.

Looking ahead to the next three months, nearly a third (32%) of respondents express optimism about improving sales numbers, a five percent increase from the previous month.

 However, nearly a quarter expect their sales numbers to stay the same, a 5% decrease from the previous month, and 44% expect sales volumes to worsen, consistent with May’s figures.

The latest edition of LMD has been released, and its digital version has been shared on WhatsApp and the publisher’s social media platforms. LMD’s publisher, Media Services, highlights two significant challenges for Sri Lanka as a developing country: corporate governance and the skill gap.

Better corporate governance procedures are essential for attracting foreign investment and maintaining the integrity of Sri Lanka’s business environment.

Strong frameworks that guarantee ethical business conduct are crucial. Despite advancements, there is a notable deficiency in qualified management personnel. Educational institutions, business leaders, and the government must collaborate to create programs that address the evolving demands of the corporate world.

The youth population in Sri Lanka has made significant strides in management and entrepreneurship, contributing to the transformation of the business environment.

Their dynamism, inventiveness, and flexibility have sparked innovation, fueling economic expansion and promoting an entrepreneurial culture.

However, young business owners face several challenges, including difficult regulations, insufficient infrastructure, and restricted access to funding.

 They may also lack the necessary networks and expertise, making it difficult to navigate the complexities of running a business. The absence of mentorship and support networks further hinders their performance.

Despite these obstacles, Sri Lanka’s young community has shown remarkable tenacity. Limited job opportunities for school leavers can lead to unemployment or underemployment, presenting additional challenges for the country’s economic development.

While there are pockets of optimism and improvements in certain areas, widespread apprehension about the economic landscape persists. Addressing corporate governance issues and the skill gap is crucial for sustained economic growth and development in Sri Lanka.