The Inland Revenue Department (IRD) has underscored the necessity of acquiring a Tax Identification Number (TIN), warning that failure to do so incurs a penalty of Rs. 50,000. Effective January 1, 2024, any individual aged 18 or above, or those reaching 18 after this date, are mandated to register with the IRD and obtain a TIN.

While the possession of a TIN doesn’t automatically indicate an obligation to pay income tax, individuals earning an annual income exceeding Rs. 1.2 million are required to pay income tax as per the stipulations.

The Ministry of Finance clarified that a TIN is now mandatory for several activities, including opening a current account, obtaining building plan approvals, registering a motor vehicle, renewing a license, and registering land title deeds.

To facilitate registration, the public can opt for various methods, as outlined by the IRD:

1. Online Registration: Individuals can visit the IRD website and navigate to e-Services, where they should click on “Access to e-Services” and select “Taxpayer Registration.” After filling and submitting the application form, a certificate containing the TIN and a one-time PIN will be emailed upon departmental review.
2. Registration by Post or In-person: Applicants can complete the Registration Application Form and submit it to the Primary Registration Unit at the IRD Head-office (2nd Floor) or any nearby Regional/Metropolitan Office.

For online registration, a PDF of the National Identity Card (both sides scanned) needs to be uploaded. In cases where the address on the NIC has changed, an appropriate document validating the new address must also be uploaded. The IRD encourages compliance with these requirements for smooth registration.

In the ongoing islandwide operation ‘Yukthiya’ conducted by the Police Special Task Force, another 1,182 suspects were apprehended in the 24 hours ending at 12.30 am on January 3. This intensive drive was executed under the Ministry of Public Security’s directives.

The Police’s diligent efforts led to the seizure of significant quantities of illicit substances during the recent raid, including 287g of heroin, 246g of ICE, 5.4 kilos of cannabis, and 119 narcotic pills.

Since its launch on December 17, 2023, the ‘Yukthiya’ special operation has resulted in the arrest of over 22,500 individuals. The Police Special Task Force has conducted more than 21,700 raids as part of this operation, specifically aimed at combating drug trafficking and underworld-related activities in Sri Lanka.

In addition to the arrests, law enforcement authorities have successfully recovered substantial amounts of narcotics and have confiscated various unlawfully obtained assets, such as properties and vehicles, during the extensive series of raids.

In a circular issued by Eng. Narendra de Silva, the Acting General Manager of the Ceylon Electricity Board (CEB), all employee leave stands cancelled from January 2 onwards.

This directive pertains to the workforce of the state-owned electricity supplier.

1. The government introduces the Bill for the establishment of the Commission for Truth, Unity, and Reconciliation in Sri Lanka via an official Gazette announcement, outlining its powers and focus on implementing recommendations for reconciliation. The legislation, titled the “Commission for Truth, Unity, and Reconciliation in Sri Lanka Act, No. of 2024,” defines the Commission’s role in overseeing and executing these recommendations.
2. Construction industry faces a steeper decline than anticipated, dropping by 14.9% instead of the earlier forecasted 7.9% in the past year. A projected recovery is expected, with the industry set to rebound with an average annual growth of 5.6% between 2024 and 2027, following the low base of 2022 and 2023.
3. Cabinet approval has been granted to sign a Memorandum of Understanding (MoU) between Sri Lanka, the United Kingdom, and Northern Ireland for cooperation in the Maritime States Partnership Programme.
4. MoF issues a clarification regarding Tax Identification Numbers (TINs), emphasizing that possessing a TIN does not automatically imply liability for income tax. Only individuals aged 18 and above, whose income surpasses the annual tax exemption limit of Rs. 1.2 million, are obligated to pay income tax.
5. Minister of Agriculture Mahinda Amaraweera announces plans to remove Value Added Tax (VAT) on chemical fertilizers: states that the VAT exemption is planned to take effect from the upcoming Yala season, which typically commences in March or April.
6. Lanka Milk Foods (CWE) Plc streamlined its dairy business by consolidating four subsidiaries—Ambewela Products Ltd., United Dairies Lanka Ltd., Ambewela Livestock Company Ltd., and Pattipola Livestock Company Ltd.—through a Rs. 5 billion shareholding restructuring. All shares held in these subsidiaries were transferred to Lanka Dairies Ltd.
7. Cabinet approval has been granted to proceed with the proposed Sri Lanka-Thailand Free Trade Agreement (FTA). The ninth round of negotiations on the proposed FTA was held in Colombo from 18-21 December 2023.
8. Industry and Health Minister Dr. Ramesh Pathirana says that preparations are underway to digitize procurement activities to enhance transparency in the procurement of medicines for hospitals.
9. Cabinet approves the lease of 61 fuel storage tanks in Trincomalee’s China Bay Harbour for 50 years. Trincomalee Terminal Private Limited will spearhead the phased project, starting with renovating nine tanks, laying a 1.75-kilometer pipeline, and constructing supporting facilities under a Build, Operate, and Transfer (BOT) model, structured across 16 years and seven phases.
10. Zimbabwe is set to tour Sri Lanka for a series of three One Day Internationals (ODIs) and three Twenty20 Internationals (T20Is), all to be held at Colombo’s R. Premadasa Stadium. The ODIs will take place on the 6th, 8th, and 11th of January, while the T20i matches will be played on the 14th, 16th, and 18th of January 2024.

The Sri Lankan Cabinet has granted approval to enter into a Memorandum of Understanding (MoU) involving Sri Lanka, the United Kingdom, and Northern Ireland for collaboration within the Maritime States Partnership Programme. This strategic move aligns with the global emphasis placed by the UK and Northern Ireland governments on ocean health initiatives.

The UK and Northern Ireland are leading worldwide endeavors to safeguard ocean health, notably by aiming to preserve at least 30% of the global ocean by 2030. Additionally, they are establishing the Blue Planet Fund, allocated with 500 million euros, dedicated to fostering marine conservation efforts and cultivating a sustainable blue economy.

Under the purview of these ambitions, the UK’s Department for Environment, Food, and Rural Affairs has developed an array of programs, including the Maritime States Partnership Program. This initiative aims to extend support to eligible nations, with Sri Lanka identified as one such beneficiary.

The proposed MoU seeks to formalize cooperation between Sri Lanka and the UK-Northern Ireland alliance, facilitating engagement within the Maritime States Partnership Programme. In line with this initiative, consultations have been sought from the Department of Foreign Resources and other pertinent ministries regarding the draft MoU.

Following due consideration, the Cabinet of Ministers has endorsed the proposal put forth by the Minister of Environment to proceed with signing the relevant Memorandum of Understanding.

Showery condition in the Eastern and Uva provinces is expected to be reduced during today and the next two days.

A few showers will occur in Eastern province and in Matale district.

Showers or thundershowers will occur at several places in the Sabaragamuwa, Southern, Western and Uva provinces and Kandy and Nuwara Eliya districts after 2.00 p.m. Fairly heavy showers above 50 mm are likely at some places in Galle, Matara and Ratnapura districts.

Misty conditions can be expected at some places in Western, Sabaragamuwa and Central provinces during the morning.

The public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

January 02, Colombo (LNW): Comprehensive inspections will be carried out from today (02), to ascertain whether businesses have impartially adjusted their product prices in accordance with the recent modifications in the value-added tax (VAT), the Consumer Affairs Authority (CAA) disclosed.

These inspections are slated to cover a wide spectrum of retail establishments across the entirety of the island, following reports on certain businesses unfairly increasing the prices of commodities in the guise of VAT revision.

Despite the overall VAT increase to 18 per cent, specific commodities subject to the pre-existing 15 per cent VAT until yesterday will only experience a marginal 3 per cent increment.

Consequently, the revised VAT rates are not universally applicable to all goods and services.

Nevertheless, the CAA underscored that it is committed to enforcing the law uniformly, pledging to take action against businesses found selling goods above the stipulated prices, irrespective of their social statuses.

January 02, Colombo (LNW): The government has formally announced the Bill proposing the establishment of the Commission for Truth, Unity, and Reconciliation in Sri Lanka, via gazette.

According to the Gazette, the legislation is officially titled the “Commission for Truth, Unity, and Reconciliation in Sri Lanka Act, No. of 2024.”

This Act delineates the powers and functions entrusted to the Commission, with a primary focus on overseeing the implementation of recommendations put forth by the Commission for Truth, Unity, and Reconciliation in Sri Lanka.

Additionally, the Act addresses ancillary matters connected or incidental to the core objectives of the Commission.