By: Staff Writer
March 17, Colombo (LNW): A growing number of companies originally approved as export-oriented manufacturers under Sri Lanka’s investment promotion laws are now supplying their products entirely to the domestic market sparking allegations of unfair competition and large-scale tax avoidance.
Several industrialists in sectors such as aluminium fabrication, apparel, processed foods, and plastics claim that firms registered under the Board of Investment Law No. 4 of 1978, operating through agreements under Section 17, have shifted away from exports and are selling their full production locally.
The concessions granted under the Board of Investment of Sri Lanka (BOI) were originally designed to attract foreign direct investment and boost export earnings.
These incentives include customs duty exemptions on imported machinery and raw materials, relief from certain levies, enhanced capital allowances, and streamlined regulatory approvals.
Local manufacturers say the misuse of these privileges is distorting competition.
“Companies that were supposed to export are now competing directly with us in the local market while enjoying tax exemptions we don’t receive,” said the head of a Colombo-based aluminium fabrication company.
Industrialists argue that local manufacturers must pay full customs duties, value-added tax, and other indirect taxes on imported machinery and raw materials.
In addition, they must obtain licenses and approvals from multiple regulatory authorities, including the Ministry of Industry and Entrepreneurship Development and related sector regulators.
By contrast, some BOI-approved firms allegedly import raw materials duty-free under bonded warehouse facilities and then supply the finished goods domestically.
“This creates a huge cost advantage. Their production costs are far lower than ours,” said another industrialist in the plastics sector.
Industry representatives claim the practice has allowed companies to avoid significant tax payments on machinery and equipment imports.
According to several business leaders who spoke to the Sunday Times Business, some firms continue to operate under BOI status even when importing raw materials that are ultimately used for products sold in the local market.
They allege that these companies often obtain approvals solely through the BOI and declare that imports are intended for export production.
Customs officials are then allegedly informed that the materials will be used for export manufacturing, even when the final products enter the domestic supply chain.
The issue comes at a time when the government is attempting to tighten oversight of fiscal concessions.
A senior Finance Ministry official confirmed that the Tax Policy Analysis Unit (TPAU) was operationalized in early 2026 to ensure future tax incentives and exemptions are based on rigorous economic analysis rather than lobbying pressure.
Meanwhile, industrialists warn that the current situation is placing domestic manufacturers under severe financial strain.
Many of them invested heavily in factories using local capital and large bank loans at commercial interest rates.
“If this continues, local industries will struggle to survive,” said one apparel manufacturer.
They are now urging authorities to investigate the alleged misuse of BOI concessions and enforce stricter monitoring of export obligations.
Duty-Free BOI Firms Flood Local Market, Industry Leaders Allege
Activists Demand Revocation of Discriminatory Circular Protecting Abusive Teachers
By: Isuru Parakrama
March 17, Colombo (LNW): The Attorney General’s Office has come under fire in the accusation of being a legal shield to teachers and principals who use corporal punishment to children.
Prominent child rights advocate Dr Thushara Wickramanayake has launched a scathing critique of the Attorney General’s Department, accusing the office of undermining the Constitution by providing a legal shield to teachers and principals who use corporal punishment on children.
In an open appeal addressed to President Anura Kumara Dissanayake, Prime Minister Dr Harini Amarasuriya, and the Ministers of Justice and Women and Child Affairs, Dr Wickramanayake called for the immediate withdrawal of a controversial police circular dating back to 2009.
The “Two-Tier” Justice System
The core of the dispute lies in a directive issued by the Attorney General on August 07, 2009. The circular instructs Sri Lanka Police to refer all complaints of physical abuse involving school staff to the AG’s office before taking further action, provided the incident occurred during school hours and the injuries are deemed “not serious.”
Dr Wickramanayake argues that this directive creates a legal loophole specifically for educators, effectively preventing the immediate arrest and prosecution of those accused of child cruelty.
“Section 12 of the Constitution of the Democratic Socialist Republic of Sri Lanka states that the law must be equal for every citizen and must be implemented equally,” she noted. “Why is the law being bent specifically for teachers while no other profession receives such special treatment?”
Mental Trauma Ignored
A significant point of contention raised by Dr Wickramanayake is the failure to account for psychological harm. Under Section 308A of the Penal Code, “Child Cruelty” encompasses both physical and mental abuse.
Dr Wickramanayake questioned the AG’s criteria for “serious” injury, asking: How can the AG assess a child’s mental trauma through a circular? Does the lack of visible scarring mean no crime was committed? By delaying legal advice for nearly a decade in some cases, is the AG’s office acting as a “secondary abuser” by allowing offenders to remain in classrooms?
A Call for Executive Action
The activist described the current state of child protection as a “farce,” stating that the Attorney General cannot act as “judge and jury” by overriding statutory laws through administrative circulars. She argued that the directive prioritises administrative convenience over the “best interests of the child.”
The appeal concludes with a firm demand to the new administration to uphold the rule of law and ensure that school environments are safe for all children, regardless of the perpetrator’s professional status.
Midweek Shutdown Extends to Tuition and Universities as Sri Lanka Tightens Fuel-Saving Measures
March 17, Colombo (LNW): Private tuition classes across Sri Lanka will not be permitted on Wednesdays, now designated as a weekly public holiday, as part of a wider effort to curb fuel consumption, authorities have announced.
Prabath Chandrakeerthi confirmed that the restriction applies islandwide, bringing after-school academic activities in line with the government’s broader midweek closure policy.
At the same time, universities have been directed to shift teaching online where possible. According to Wasantha Liyanage of the University Grants Commission, vice chancellors have been advised to ensure lectures continue via digital platforms to minimise disruption to higher education.
Students currently residing in university hostels will be allowed to remain on campus, with their studies continuing remotely. However, individual universities have been granted discretion to decide whether students may return home or be granted leave, depending on prevailing circumstances.
The sweeping measures form part of a government strategy to brace for potential fuel shortages linked to ongoing global tensions. Weekly public holidays on Wednesdays will apply to most state institutions, including schools, universities, and courts, although critical sectors such as healthcare, ports, water services, and customs will continue to function as usual.
The policy was finalised following high-level consultations chaired by President Anura Kumara Dissanayake and Prime Minister Harini Amarasuriya, alongside senior ministers and top officials. Discussions centred on safeguarding essential services while preparing for possible constraints in fuel availability.
In a further move to conserve resources, all state-sponsored ceremonial events have been suspended indefinitely. Authorities are also engaging with private sector stakeholders, including business chambers and trade unions, to encourage similar energy-saving practices beyond the public sector.
Officials noted that fuel distribution continues under the existing QR-based system, with ongoing assessments to prioritise supply for vital industries such as agriculture, healthcare, tourism, and manufacturing. Special attention is being given to maintaining transport networks for essential goods, particularly food distribution.
To oversee the evolving situation, the Cabinet has established several dedicated committees tasked with ensuring continuity of public services, managing energy use, monitoring essential goods distribution, and addressing welfare concerns among vulnerable groups.
While Wednesdays are now largely non-working days for the public sector, ministry secretaries and department heads retain the authority to deploy limited staff where necessary to maintain critical functions. Weekend closures for most government offices will also remain in place.
Despite assurances that current fuel reserves are adequate, officials say these precautionary steps are intended to strengthen preparedness and minimise disruption should global supply conditions worsen.
Sri Lanka to Close Schools on Wednesdays Amid Fuel Shortage
March 17, Colombo (LNW): Sri Lanka’s education authorities have confirmed that government-run schools will not operate on Wednesdays until further notice, as the country grapples with persistent fuel shortages.
Education Ministry Secretary Nalaka Kaluwewe stated that the move aligns with a broader government directive granting weekly leave to public sector workers in an effort to reduce fuel consumption and ease pressure on limited energy supplies.
The policy follows high-level discussions led by President Anura Kumara Dissanayake, who stressed the need for careful energy management while keeping vital economic and public services running. The meeting, held at the Presidential Secretariat, brought together senior ministers and top bureaucrats to map out immediate responses to the ongoing crisis.
Officials indicated that the weekly closure of schools is part of a wider administrative adjustment affecting much of the public sector. Prabath Chandrakeerthi confirmed that all state employees will be given leave every Wednesday beginning this week, with the arrangement extending to universities and courts as well.
Despite the sweeping changes, authorities have assured the public that critical services will continue uninterrupted. Sectors such as healthcare, port operations, water supply, and rail transport are expected to function normally, with employees in these areas exempt from the midweek break.
In addition, the Cabinet has reportedly established several specialised committees to monitor the evolving situation and recommend further measures. These groups are expected to play a key role in shaping both short-term responses and longer-term strategies as Sri Lanka navigates its energy constraints.
Google Challenges Sri Lankan Judge’s Plea in Indian Court Over Online Reports
March 17, Colombo (LNW): Google has informed the Karnataka High Court that a petition lodged by a sitting Sri Lankan Supreme Court judge, seeking the removal of allegedly defamatory online reports, is not legally sustainable, a report by Indian Express disclosed.
The case centres on Justice A.H.M.D. Nawaz, who has asked the court to order Google India to take down links connected to news articles published in 2015 and 2020 by Sri Lanka-based outlets Colombo Telegraph and LankaNews. The judge contends that the material has harmed his professional standing.
Representing Google, advocate Manu P. Kulkarni argued that the Indian court lacks jurisdiction in the matter. He maintained that the petitioner, being a Sri Lankan judge, is challenging content that originated outside India, making the case inappropriate for adjudication by an Indian forum. Kulkarni further criticised the filing as overly speculative and urged the court to dismiss it outright.
He also emphasised that Google India should not be named in the proceedings, asserting that responsibility lies instead with Google LLC, the parent entity headquartered in the United States.
Google’s legal team warned that entertaining such petitions could set a precedent, encouraging individuals from across the globe to approach Indian courts over online content, thereby placing undue strain on the judicial system.
On the other side, counsel for Justice Nawaz, advocate Prabhakaran Ramachandran, pressed the court to adopt a firm stance against what he described as damaging and malicious reporting targeting members of the judiciary. He argued that judges must be safeguarded from reputational attacks that could undermine public confidence in the legal system.
During the proceedings, the petitioner’s counsel also raised concerns about social media activity allegedly linked to the journalist behind the disputed articles. It was suggested that commentary published while the matter is under consideration could potentially amount to contempt of court.
Addressing Google’s objections on jurisdiction, Ramachandran contended that the right to equality before the law, as enshrined in Article 14 of the Indian Constitution, extends to non-citizens as well. He argued that if harmful content is accessible within India, affected individuals—regardless of nationality—should be entitled to seek legal recourse in Indian courts.
Justice Nawaz has described the articles as deeply injurious, claiming they amount to a severe assault on his reputation. He further explained that initiating legal action in Sri Lanka would be problematic due to the principle that a judge cannot preside over a matter in which they have a personal interest.
Presiding over the case, Justice Sachin Shankar Magadum directed the petitioner to revise the filing and instructed both the central government and Google to submit their responses. The matter is scheduled to be heard again later this month.
Sri Lanka Bolsters High-Tech Aerial Surveillance to Combat Roadside Landslide Risks
March 17, Colombo (LNW): Sri Lanka’s road infrastructure is set for a significant technological upgrade following the recent delivery of state-of-the-art unmanned aerial vehicles (UAVs) to the Road Development Authority.
These sophisticated drones, provided through a collaborative initiative with the Japan International Cooperation Agency (JICA), are earmarked for critical safety operations aimed at mitigating the country’s persistent threat of earth slips and hillside collapses.
The partnership gained momentum in the wake of the devastating Cyclone Ditwah, which battered the island late last year. Responding to the urgent need for rapid damage assessment, Japanese technical experts assisted local engineers in conducting extensive surveys of the worst-hit transport corridors.
This latest equipment handover marks a formal evolution of that cooperation, shifting the focus towards long-term resilience and preventative maintenance for the national motorway network through 2028.
Equipped with high-precision sensors, the new fleet allows for the creation of intricate 3D topographical maps and real-time monitoring of unstable slopes that were previously inaccessible or too hazardous for manual inspection. By feeding crystal-clear visual data directly into the national road management database, the technology enables officials to pinpoint vulnerabilities before they lead to catastrophic failures.
This shift toward data-driven disaster management ensures that emergency teams can deploy resources more efficiently, ultimately safeguarding commuters and maintaining vital supply chains during the monsoon seasons.
Business Leaders Urge Swift Economic Safeguards Amid Rising Global Uncertainty
March 17, Colombo (LNW): The Ceylon Chamber of Commerce has called on the government to adopt coordinated and forward-looking measures to shield Sri Lanka’s economy from potential shocks stemming from the intensifying conflict in the Middle East and the broader global uncertainty surrounding energy supplies.
In a statement issued this week, the Chamber said it stands ready to collaborate closely with policymakers and has already presented a series of policy proposals aimed at maintaining economic stability and protecting vital sectors.
The organisation noted that in recommendations submitted on March 11, 2026, it emphasised the `importance of continuing the country’s programme with the International Monetary Fund and ensuring that upcoming financial disbursements are received on schedule.
It also advocated reforms to the fuel pricing structure to make it more responsive to market changes, as well as the revival of the QR-based fuel distribution system — measures that authorities have already begun to implement.
Earlier proposals from the Chamber also focused on strengthening energy security and supporting key industries. These included accelerating fuel procurement processes, maintaining sufficient fertiliser supplies ahead of the next cultivation season, and intensifying tourism marketing campaigns, particularly in fast-growing travel markets such as India and parts of East Asia. It also suggested expediting port clearance procedures and reassessing policies that may place additional strain on the country’s foreign exchange reserves.
Building on those recommendations, the Chamber has now proposed several further steps designed to ensure that economic activity continues even if supply disruptions occur. Among the key suggestions is the identification of essential services and priority economic sectors that should receive preferential access to limited resources such as fuel and foreign currency during periods of constraint.
The Chamber also recommended adopting a more strategic approach to securing fuel supplies by widening the range of international suppliers and strengthening procurement arrangements. It warned that maintaining adequate aviation fuel reserves would be particularly critical to sustain the country’s tourism industry and ensure uninterrupted international connectivity.
Another proposal involves permitting licensed domestic bunkering firms to independently source fuel for use by export-oriented manufacturers and tourism operators. Such purchases could potentially be conducted in foreign currency, a model that the Chamber noted had previously helped sustain certain industries during the country’s recent economic crisis.
To further reduce fuel consumption without halting productivity, the organisation suggested introducing flexible working arrangements across both the public and private sectors. Options such as remote working and staggered office hours could help limit daily travel and reduce energy demand.
The Chamber also proposed adjusting the academic calendar if necessary, including bringing forward the closure of schools and universities ahead of the traditional Sinhala and Tamil New Year holidays, while temporarily relying on online learning platforms where feasible.
Additionally, it advised that the government consider temporarily restricting non-essential outflows of foreign currency while prioritising reserves for critical imports. These would include fuel, food supplies, pharmaceutical products and raw materials required by export industries.
According to the Chamber, close cooperation between the government and the private sector will be essential in navigating potential global disruptions. It stressed that businesses should be kept regularly informed of policy developments so that companies can plan ahead and respond effectively to changing economic conditions.
AKD Laughed at His Opponents — Now gets a Dose of His Own Medicine
By Adolf
March 17, LNW (Colombo): Politics can be unforgiving. Words spoken in opposition often return to haunt leaders once they assume office. That appears increasingly to be the case for Anura Kumara Dissanayake, who built much of his political persona on ridiculing the political establishment, including former President Ranil Wickremesinghe.
For years, Dissanayake was among the most vocal critics of Sri Lanka’s traditional political class. His speeches were sharp, theatrical, and often laced with sarcasm and ridicule. Few public figures escaped his criticism. Presidents, ministers, bureaucrats, business leaders, and institutions were frequent targets of his scathing commentary.
Such rhetoric resonated strongly with voters frustrated by corruption, economic hardship, and decades of political mismanagement. In opposition, this style of politics often wins applause. It energises crowds, simplifies complex issues, and presents the speaker as a fearless challenger to entrenched power.
However, criticism can sometimes cross the line from political debate into mockery. In one widely circulated instance following a speech by Wickremesinghe, Dissanayake appeared to make light of the way the former president pronounced a word in English laugh Gas. AKD spoke as though he had done elocution. The moment was shared widely online, with supporters using it as a political jab.
Ridiculing
Yet such ridicule overlooked an obvious reality. Wickremesinghe was educated at Royal College Colombo, one of Sri Lanka’s most prestigious schools, and has spent decades operating on the global political and economic stage. Regardless of political disagreements, his international exposure and long experience in governance are widely recognised. Dissanayake, by contrast, emerged from a very different background. Rising through grassroots activism and the ranks of the Janatha Vimukthi Peramuna, he built his reputation as an anti-establishment campaigner who spoke the language of ordinary people. That authenticity helped him connect with citizens frustrated with traditional political elites and yearning for change. As for his English competency. People are yet to hear him speak in English. But political rhetoric that thrives in opposition can quickly become a liability in government. Today, many of Dissanayake’s own speeches and pronouncements are being scrutinised with the same intensity he once directed at others. Statements that once drew applause at political rallies are now being revisited in the context of governing responsibilities. Critics are increasingly highlighting inconsistencies between past rhetoric and present realities. Recent controversies surrounding fuel supply queues and the reintroduction or discussion of mechanisms such as the QR-based fuel distribution system have reignited debates over earlier criticisms made by opposition politicians. What once appeared to be simple solutions from the sidelines now confront the complex realities of governance.
This is not unusual in politics. Leaders everywhere discover that governing is far more complicated than criticising from the opposition benches. Policies that sound straightforward during campaign speeches often prove far more difficult to implement in practice.
In Sri Lanka’s case, the challenges are particularly daunting. The country continues to navigate the aftermath of its worst economic crisis since independence following the Sri Lankan economic crisis (2019–2023). Stabilising public finances, rebuilding investor confidence, restoring growth, and maintaining social stability require pragmatic and sometimes unpopular decisions. As a result, the political stage that once rewarded dramatic criticism now demands measured leadership. Every speech, every promise, and every policy is judged not by rhetoric but by outcomes.
Bitter Truth
In that sense, Dissanayake may be experiencing what many politicians before him have faced: the difficult transition from opposition rhetoric to governing responsibility. The scrutiny he once directed at others is now directed at him. If there is a lesson here, it is that politics requires humility. Public life inevitably exposes every leader’s words and actions to intense examination. Mockery may earn applause in the short term, but it rarely ages well. Sri Lanka’s voters today are less interested in political theatre than in results. The real test of leadership is not how effectively one criticises opponents, but how effectively one governs when entrusted with power. In politics, as in life, the medicine once prescribed for others sometimes returns to one’s own doorstep. As the old saying goes, what goes around comes around — and AKD may now be learning that lesson the hard way.
The content of this article is the viewpoint of its author and does not reflect the opinion of LNW in any way.
Government Weighs Energy-Saving Measures as Middle East Crisis Threatens Fuel Supplies
March 17, Colombo (LNW): President Anura Kumara Dissanayake has announced that the government is preparing a series of measures to manage the country’s energy resources more carefully as tensions in the Middle East continue to disrupt global fuel supplies.
The President made the remarks during a high-level meeting held yesterday afternoon at the Presidential Secretariat, where senior ministers and top officials gathered to assess the potential impact of the evolving situation on Sri Lanka’s energy availability and economic stability.
Discussions centred on immediate steps needed to ensure that key economic activities and public services continue without interruption while also reducing energy consumption across government institutions.
Among the proposals considered was the possibility of introducing a weekly public service holiday as a temporary measure to limit electricity and fuel usage in state offices. Officials also explored alternative working arrangements, including the expanded use of remote work for certain government departments where duties can be carried out online.
The meeting further examined how critical sectors such as education, healthcare, tourism, fisheries, manufacturing, agriculture, port operations, aviation services and digital infrastructure could continue operating efficiently while minimising energy demand.
To support these efforts, the President directed a committee comprising ministry secretaries and sector specialists to submit an urgent report outlining the fuel requirements needed to maintain operations in essential industries. The report was expected to provide guidance on how limited fuel resources should be allocated in the coming weeks.
Officials also discussed strengthening the national fuel distribution monitoring system, particularly the QR-based fuel allocation programme introduced during the country’s previous fuel shortages. The system is expected to help authorities track daily fuel usage more accurately and distribute supplies in a manner that protects both energy reserves and economic productivity.
The government stressed the importance of each ministry sharing updated data with the Ministry of Digital Economy to improve the efficiency of the system. Authorities are also considering further refinements to the mechanism in collaboration with recognised petroleum sector institutions.
During the meeting, attention was drawn to the pressures faced by farmers and small and medium-scale industrialists, who are particularly vulnerable to disruptions in fuel supply. The President noted that targeted relief measures could be introduced if necessary to support these sectors.
In addition, officials discussed suspending certain state ceremonies and large-scale official events as part of a broader effort to conserve resources during the current period of uncertainty.
President Dissanayake emphasised that cooperation from all sectors of society would be vital in reducing the potential economic impact of the global situation. He noted that prudent energy use and coordinated planning would help the country maintain stability while safeguarding essential services.
The meeting was attended by Prime Minister Harini Amarasuriya and several cabinet ministers, including Vijitha Herath, Wasantha Samarasinghe, Nalinda Jayatissa, A. H. M. H. Abeyratne, Anil Jayantha Fernando, Sunil Handunnetti and Bimal Rathnayake, along with senior government officials and economic advisers.
Health Ministry Introduces Wednesday Work-From-Home Policy to Conserve Fuel
March 17, Colombo (LNW): Amid the ongoing global economic strain and rising energy concerns, the Ministry of Health has introduced a new measure allowing selected government health sector employees to work remotely every Wednesday in an effort to curb fuel consumption.
The decision was communicated through an official circular issued by the Secretary to the Ministry of Health and Mass Media, Dr Anil Jasinghe. The arrangement comes into effect this week and will remain in force until further notice.
Under the new directive, staff attached to several key institutions will be required to perform their duties from home on Wednesdays. This applies to all departments operating from the New Ministry Building on Castle Street, as well as those based at the Anti-Malaria Campaign headquarters in Narahenpita. Officers attached to the National Cancer Control Programme and the Health Promotion Bureau are also included in the remote working arrangement.
However, certain essential operations will continue to function on site. Activities linked to the Ministry’s Transport Division must be carried out from the Suwasiripaya building, ensuring that logistical support for health services remains uninterrupted.
Meanwhile, officers responsible for issuing licences under the Food Control Administration Unit of the Environmental Health, Occupational Health and Food Safety Division have been instructed to report to the Suwasiripaya premises on Wednesdays. This instruction has been issued under the guidance of the Acting Deputy Director General overseeing the division.
The ministry has stressed that despite the reduced physical attendance, all essential services must be maintained. Institutions affected by the directive have been asked to make suitable internal arrangements to ensure that critical public health functions continue without disruption.
Furthermore, other divisions and units within the Ministry of Health have been encouraged to minimise staff presence on Wednesdays wherever possible, keeping only the personnel required for essential duties.
Officials have been urged to carefully coordinate these temporary work arrangements so that public health services across the country remain efficient and accessible while contributing to national fuel-saving efforts.