January 22, Colombo (LNW): Transport Minister Bandula Gunawardena has indicated that the government is considering the establishment of VAT-Free shops nationwide to address the perceived misconceptions and concerns related to the Value Added Tax (VAT) on consumer goods.

Minister Gunawardena addressed public misconceptions, stating that there is a prevailing belief that all consumer items are subject to VAT, contributing to the perception of increased prices.

Acknowledging the need to alleviate public concerns, Gunawardena disclosed that instructions have been issued to conduct a feasibility study.

The study aims to identify suitable locations under the purview of the Road Development Authorities (RDA) for the establishment of VAT-Free shops, he emphasised.

He outlined that the government intends to take proactive measures by creating a network of shops throughout the country dedicated to non-VAT items. These shops would offer essential products such as vegetables, rice, and baby milk powder, promoting fair and competitive trade practices, he noted.

While the proposal may be seen as an attempt to address public concerns, critics argue that such measures may be reactive and could have been avoided with clearer communication about the specific items subject to VAT.

The move raises questions about the effectiveness of the government’s communication strategy regarding tax policies and its responsiveness to public perceptions.

January 22, Colombo (LNW): The Sri Lankan (LKR) indicates appreciation against the US Dollar today (22) in comparison to last week’s Friday, as per the exchange rates of leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 314.80 from Rs. 315.30, and the selling price to Rs. 325.78 from Rs. 326.28.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 313.06 from Rs. 314.92, and the selling price to Rs. 324 from Rs. 325.

At Sampath Bank, the buying price of the US Dollar has dropped to Rs. 315 from Rs. 316, and the selling price to Rs. 324 from Rs. 325.

January 22, Colombo (LNW): The Micro-Finance and Loan Regulation Act has been presented to Parliament to establish a robust regulatory framework under government auspices, Finance State Minister Shehan Semasinghe announced.

Speaking at the “FLi Diri Abhimani 2024” awards ceremony, which recognises women entrepreneurs in the Micro-Financial Sector, Semasinghe expressed expectations for the act’s approval in the coming months.

He underscored the significance of the legislation in safeguarding consumers and micro-finance entities. Semasinghe noted that the benefits of economic development would take several months to materialise for the public, urging adherence to the existing economic management plan regardless of the government in power.

He outlined plans to implement proper regulation within the first quarter of the year, highlighting the positive turn in the economy from the second quarter of 2023 after six consecutive negative quarters.

However, he acknowledged that the positive economic outlook has yet to alleviate the challenges faced by the public.

While the economic restructuring process is set to yield benefits, Semasinghe cautioned against deviation from the established economic management system, warning that such a move could lead to a more severe economic crisis than experienced in 2022.

January 22, Colombo (LNW): President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mahbubul Alam extended an invitation to Sri Lankan businessmen and investors to explore opportunities in Bangladesh’s special economic zones, Bangladesh-based business news agency BSS reported.

This proposition was made during a courtesy meeting at FBCCI’s Gulshan office with Dharmapala Weerakkody, High Commissioner of Sri Lanka in Bangladesh.

President Alam highlighted the establishment of 100 special economic zones across Bangladesh, equipped with essential facilities such as oil, gas, and electricity, along with streamlined services and e-platforms.

He emphasised the attractive incentives in place to facilitate business and investment, suggesting that Sri Lankan entrepreneurs could benefit from establishing industries independently or through joint ventures.

Identifying sectors like garments, pharmaceuticals, eco-tourism, and hospitality as potential areas of interest, President Alam assured that FBCCI would provide comprehensive support to Sri Lankan investors venturing into Bangladesh.

High Commissioner Weerakkody acknowledged the interest of Sri Lankan business entrepreneurs in Bangladesh and underscored the need to elevate bilateral trade between the two countries.

He also noted the substantial number of Bangladeshi tourists visiting Sri Lanka annually.

During the meeting, FBCCI leaders commended the role of the Sri Lankan Central Bank in overcoming economic challenges.

The gathering included Srimali Jayarathna, Commercial Counselor of the Sri Lankan High Commission, FBCCI Vice Presidents Shomi Kaiser and Rashadul Hossain Chowdhury (Ronni), and Secretary General Md. Alamgir, among others.