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Government to Merge Tax Departments in Bold Move to Combat Evasion

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By: Staff Writer

April 28, Colombo (LNW): Sri Lanka’s Inland Revenue Department (IRD) is poised to integrate operations with the Excise and Customs Departments as a crucial first step toward creating a single, unified tax authority. This move aims to maintain one centralised digital system, streamlining tax records and ensuring seamless transaction tracking across sectors.

President Anura Kumara Dissanayake has instructed officials from both the Excise and Customs Departments to collaborate closely with the IRD, with a particular focus on regulating the alcohol and tobacco industries. The integration prioritises strengthening public health, enforcing compliance, and enhancing overall governance.

The government has emphasised that more effective regulation of alcohol and other legal intoxicants is essential to promote economic growth. Authorities plan to boost state revenue through tighter control of these industries, ensuring lawful revenue generation and strict adherence to regulations.

A major component of this strategy includes robust public awareness campaigns aimed at curbing illegal alcohol distribution, the spread of hazardous drugs, and the misuse of psychoactive substances. These efforts are designed to protect public health and ensure national safety by targeting the risks associated with unregulated alcohol consumption.

According to a senior Finance Ministry official, the initiative also involves setting up a strong, strategic management and decision-making framework for integrated operations. Discussions have already begun on developing a comprehensive human resource and technological advancement plan to strengthen the operational capacity of the Excise Department.

Currently, Sri Lanka Customs is responsible for collecting import duties, while the Excise Department manages taxes on alcohol, tobacco, and similar products. The Inland Revenue Department oversees corporate and personal income taxes. Although all three agencies theoretically aim to fund government operations, they function largely in isolation, creating loopholes that enable tax evasion and inefficiencies.

The siloed structure of these departments means that critical information is not shared between them. For instance, the IRD may not know the exact quantity of alcohol imported or sold by companies, while Customs has no mechanism to verify if importers accurately report their sales for income tax purposes. Such fragmentation opens doors for tax evaders to exploit gaps in the system.

Recognising these vulnerabilities, the government is determined to merge these departments into a single authority. Officials estimate that a successful merger could boost tax revenue collection by at least 65 percent — a critical necessity given Sri Lanka’s alarming budget deficit, which currently stands at Rs. 2.2 trillion.

Without coordination, the current system facilitates manipulation, where smugglers bypass excise duties and alcohol distributors pay excise taxes but underreport corporate earnings. These loopholes result in substantial losses for the government and undermine fair taxation.

The integration of the IRD, Customs, and Excise operations is therefore seen as an urgent reform to seal revenue leaks, strengthen compliance, and build a more sustainable fiscal foundation for Sri Lanka’s future.

Ceylon Tea Edges Closer to Full GI Certification by 2025: Major Tasks Ahead

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By: Staff Writer

April 28, Colombo (LNW): The Sri Lanka Tea Board (SLTB) anticipates completing the full implementation of Geographical Indication (GI) certification for Ceylon Tea by the end of 2025, according to SLTB Chairperson Rajpal Obeyesekere.

Speaking to a local leading weekend newspaper the Morning, Obeyesekere explained that the application for GI certification was submitted around September 2024, immediately following Sri Lanka’s presidential election.

Notably, while Obeyesekere’s appointment under the new NPP Government took effect on 4 October 2024, the initial groundwork for GI certification was laid by the previous SLTB administration under then President Ranil Wickremasighe government, industry sources confirmed. 

Following the submission, the European Commission (EC) requested additional clarifications, which were provided by the SLTB in March 2025. Obeyesekere noted that the Commission’s final report on Ceylon Tea’s GI certification is expected by September 2025.

“At present, the technical and legal experts are confident that the EC will deliver the report within six months of our submission in March. We are preparing parallelly by completing the necessary local processes so that we can move to full implementation as soon as we receive the green light,” Obeyesekere said.

 He revealed that about seven local tasks are currently underway, in collaboration with French partners, to streamline the GI certification process. These steps, expected to conclude by October 2025, will place Sri Lanka in a strong position to immediately roll out the GI system once European approval is secured.

However, Obeyesekere also highlighted a potential challenge: after an application is accepted, there is a window for third-party objections. If objections arise, Sri Lanka would need to take legal measures to defend its claim to the Ceylon Tea GI.

The push for GI certification dates back to December 2021, when the SLTB, under then-Plantation Industries Minister Dr. Ramesh Pathirana, entered into a €1 million tripartite agreement with the French Development Agency (AFD) and the French Agricultural Research Centre for International Development (CIRAD). The grant aimed to develop a GI framework and certification system for Ceylon Tea over a four-year period.

Geographical Indication certification is critical for securing the global reputation and authenticity of Ceylon Tea by linking it to its unique Sri Lankan origin. It provides strong intellectual property protection while boosting the product’s value in both domestic and international markets.

Despite the progress made by the previous regime, the NPP government now faces significant tasks to complete the GI process.

Strengthening Sri Lanka’s domestic GI system remains a priority, alongside international outreach and stakeholder engagement. This involves officially registering Ceylon Tea as a GI within Sri Lanka—similar to the model used for Ceylon Cinnamon—and ensuring strict adherence to defined quality standards.

The National Intellectual Property Office (NIPO) must establish a local GI registry for Ceylon Tea and define the specific traits and production methods that qualify for the label. Traceability systems must also be introduced to guarantee that only compliant tea is marketed as “Ceylon Tea.”

Internationally, Sri Lanka will need to negotiate GI recognition through trade agreements and mobilize support from the tea industry, government bodies, and consumers to promote and protect the GI status.

By completing these steps, Sri Lanka aims to preserve the global prestige of Ceylon Tea, ensuring that only authentic, high-quality tea carries the iconic name.

Court of Appeal rejects ex-Minister’s plea against arrest over Kelaniya land sale

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April 28, Colombo (LNW): The Court of Appeal today dismissed a petition filed by former Minister Prasanna Ranaweera, who had sought judicial intervention to block his arrest over allegations linked to the unauthorised sale of state-owned land in Kelaniya.

The decision was delivered by a two-judge bench comprising Acting President of the Court of Appeal, Justice M.T. Mohammed Laffar, and Justice K.P. Fernando, following a detailed examination of the case.

Ranaweera had petitioned the court in an effort to prevent law enforcement authorities from detaining him in relation to the controversial land transaction.

However, the Court found no sufficient grounds to grant relief, thereby allowing investigations and legal proceedings against him to continue unimpeded.

The case stems from an incident involving the alleged illicit disposal of government property within the Kelaniya region. It has already prompted the Mahara Magistrate’s Court to issue a travel ban against three individuals, including Prasanna Ranaweera, as part of ongoing investigations.

Prime Minister outlines bold vision for overhauling education system

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April 28, Colombo (LNW): Prime Minister Dr Harini Amarasuriya has pledged sweeping reforms to Sri Lanka’s education sector, highlighting past failures in teacher recruitment and vowing that future appointments will be made solely based on actual school vacancies.

Speaking at a series of public meetings across the Kurunegala District, including in Polgahawela, Weerambugedara, Piduruwella, Pillesse, Mawathagama, and Paragahadeniya, Dr Amarasuriya underscored her government’s commitment to addressing systemic challenges through pragmatic governance and integrity at all levels.

The Prime Minister’s Media Division confirmed that large gatherings of residents and local candidates were present at these events.

Dr Amarasuriya noted that previous governments had often neglected the realities on the ground, leading to an imbalance in teacher distribution across the country.

She stressed that her administration would recruit teachers based strictly on genuine needs, aiming to close the gaps between urban and rural schools and ensure fair opportunities for all students.

Reflecting on broader political matters, the Prime Minister dismissed speculation circulating amongst opposition groups about a potential change in national leadership later this year.

She described such talk as baseless distractions, urging citizens to focus instead on the transformative work underway under the current administration.

Highlighting the impact of Anura Kumara Dissanayake’s presidency, Dr Amarasuriya said the political culture had shifted towards transparency and fiscal responsibility.

She pointed out that wasteful spending and abuse of privilege amongst officials had been significantly curtailed, freeing up resources to benefit the public. For the first time in years, she said, there was a noticeable absence of credible allegations of misconduct against the government.

Dr Amarasuriya also pointed to recent examples of growing communal harmony, noting how Muslim business establishments in Kandy had opened to support the influx of Buddhist pilgrims visiting the Temple of the Sacred Tooth Relic. She hailed this development as a milestone in fostering national unity.

Turning to education reform, the Prime Minister was candid about the shortcomings that have plagued Sri Lanka’s system for decades. She criticised the outdated curricula, poor conditions in teacher training colleges, and the serious shortage of qualified lecturers.

The alarming rise in school dropouts, particularly amongst boys, and the intense competition between elite and underprivileged schools were cited as key areas needing urgent attention.

Dr Amarasuriya pledged a comprehensive overhaul, with a new education framework set to be introduced for Grade 1 and Grade 6 students from 2026. The reforms will focus on integrating knowledge, skills, and attitudes to produce well-rounded individuals who can contribute meaningfully to national development.

She emphasised that this initiative was not driven by electoral calculations but by a genuine desire to uplift future generations.

Plans are already underway to update subject curricula, enhance teacher training programmes, upgrade school infrastructure, and address critical issues within the Piriven education sector. A committee has been appointed to identify urgent needs and deliver actionable recommendations.

Dr Amarasuriya also stressed the importance of professionalism in teaching, drawing a stark comparison with Germany, where educators undergo nearly a decade of training before entering the classroom.

Although acknowledging that Sri Lanka has a long way to go, she maintained that the government was determined to set the country on the right path.

Closing her address, the Prime Minister asserted that clean, accountable leadership at the grassroots level would be essential for the success of these initiatives. She expressed confidence that the public would continue to place their trust in the National People’s Power (NPP) in the forthcoming elections, ensuring the continuation of these vital reforms.

Hambantota Port welcomes major vehicle shipment as import ban eases

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April 28, Colombo (LNW): The Hambantota International Port (HIP) has recently seen renewed activity with the arrival of a significant consignment of imported vehicles, signalling a revival in the automobile trade following the lifting of the import restrictions.

Last week, the port received a delivery of 1,560 used vehicles, marking the first such shipment by a Seven Seals vessel under the newly relaxed regulations.

This consignment, carried aboard the roll-on/roll-off (RoRo) vessel MV Viking Drive, featured a selection of popular Japanese models along with four High and Heavy units, which typically include larger commercial and specialised vehicles.

The shipment reflects the growing appetite within the local market for imported vehicles, a demand that had been stifled for years due to stringent controls.

The Viking Drive, operated by Seven Seals Company Ltd., is a substantial vessel, stretching 164 metres in length and 28 metres in width, and is capable of transporting approximately 3,500 vehicles per journey.

Its voyage route links Japan with Sri Lanka, making a scheduled transit through Bangladesh before returning, thus serving as a vital corridor for vehicle imports in the region.

Officials at Hambantota Port have reported a noticeable uptick in interest from importers since the easing of restrictions, with Seven Seals already planning another shipment scheduled for early May.

The resurgence of such commercial activities is not only anticipated to meet pent-up consumer demand but also to contribute positively to port operations and the broader economy, providing a welcome boost to sectors reliant on international trade.

Port authorities, whilst celebrating this revitalisation, have reiterated their commitment to maintaining efficiency and ensuring that the new influx of imports is handled with the highest standards of logistics management.

LNW EXCLUSIVE: Government Officials Sabotage Cancer Hospital Project – Navy Officials Forcibly Recalled, Donors Betrayed!

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April 28, Colombo (LNW): In a shocking and disgraceful move, the new government under President Anura Kumara Dissanayake has abruptly pulled out 60 Navy officials who were critical to the construction of the Maharagama Apeksha Hospital, a vital cancer treatment facility for thousands of suffering patients.

This exposes either gross incompetence or a deliberate ploy by certain government officials. Either way, the victims are Sri Lanka’s cancer patients, left in the lurch as construction grinds to a halt.

Sources within the Ministry of Defence reveal President Dissanayake may have been unaware of this reckless decision. Instead, shadowy figures with vested interests have overruled repeated pleas from health officials to continue the project.

Who are these bureaucrats making life-and-death decisions? Why is the government ignoring the desperate need for this hospital? And most importantly, who stands to gain from its failure?

The Navy’s involvement was a cost-saving masterstroke by the project team, ensuring efficient construction at minimal expense. With their sudden withdrawal, the project faces massive delays and skyrocketing costs, funded by generous donors, including Sri Lankan expatriates.

“This is not just incompetence, it’s suspicious. Is this a deliberate attempt to undermine the efforts of people, even if it means letting cancer patients suffer”?, one of the disappointed project officials stated to LNW.

Why else would the government ignore health officials’ pleas and disrespect donors’ generosity? Why recall the Navy without a backup plan? We would like to pose this question to the government’s responsible officials.

Major overhaul announced for public transport system following high-level meeting

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April 28, Colombo (LNW): Minister of Transport, Highways, Ports, and Civil Aviation Bimal Rathnayake recently convened a crucial meeting with the leadership of the National Transport Commission (NTC), the Sri Lanka Transport Board (SLTB), and Provincial Passenger Transport Authorities representing all nine provinces.

The discussions, held amid growing calls for a more efficient and reliable public transport network, led to a series of sweeping reforms aimed at modernising Sri Lanka’s passenger transport sector.

After lengthy deliberations, a number of pivotal decisions were made to address longstanding issues in the system and enhance the quality of service for commuters.

Amongst the immediate initiatives is the introduction of a unified timetable for buses operating along the Puttalam route, intended to reduce confusion and improve punctuality.

Additionally, a pilot project is set to commence on the busy 138 route, where all buses will operate under a single association with a profit-sharing model, a move designed to reduce unhealthy competition and streamline services.

A strong focus has been placed on passenger safety and transparency. The government will make it compulsory for all public buses to be fitted with GPS tracking systems and CCTV cameras, enabling better monitoring of operations and incident response.

In collaboration with the Ministry of Digital Technology, an online ticket booking platform will be developed, offering commuters a more convenient and modern method of securing travel.

Randomised drug and alcohol testing of bus drivers will also be introduced to enhance road safety, and the issuance of tickets via electronic machines will become mandatory, following a brief grace period to allow operators to transition.

Furthermore, new technical standards for passenger buses will be established, and seatbelt use will be made compulsory for drivers.

In a bid to improve the allocation of new bus routes and prevent overcrowding on popular lines, a new mechanism will be created for managing the deployment of buses.

To empower passengers, all buses will soon be required to display dedicated WhatsApp numbers for reporting violations or concerns, with separate contacts for the NTC, SLTB, and each provincial authority.

Rathnayake underscored the importance of swift action, instructing officials to immediately begin the groundwork for these reforms. He also emphasised the necessity of continuous monitoring to ensure that the measures are properly implemented and that they translate into tangible improvements for the travelling public.

30 candidates arrested as election-related complaints surge ahead of Local Polls

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April 28, Colombo (LNW): Sri Lanka Police have reported a surge in incidents connected to the 2025 Local Government Election, with 30 complaints registered over the past 24 hours up to 6.00 a.m. today (28).

Of these, nine complaints pertained directly to acts of election-related violence, whilst the remaining 21 concerned breaches of electoral laws.

Law enforcement authorities confirmed the arrest of one candidate and seven supporters within the same period, reflecting a growing trend of misconduct as election day approaches.

The police, continuing their heightened monitoring efforts, have pledged to act decisively against any attempts to disrupt the democratic process.

Since the formal commencement of the election campaign period on March 03, a total of 398 complaints relating to election activities have been received. Police records show that 30 candidates and 131 of their supporters have been apprehended over the past eight weeks, underscoring persistent challenges in maintaining order during the politically charged season.

In addition, authorities have seized 31 vehicles believed to have been used in connection with election law violations.

Security forces have been deployed extensively across the country, with special attention paid to identified hotspots where tensions between rival groups have been more pronounced.

Police spokespersons reiterated the importance of conducting a free and fair election, warning that any individuals or groups attempting to incite unrest or interfere with voters’ rights would face the full force of the law.

Observers have noted that whilst Sri Lanka traditionally experiences a degree of turbulence during election periods, recent initiatives aimed at strengthening legal enforcement and civic education appear to have tempered more widespread violence.

Nevertheless, with campaigning intensifying in the final stretch before voting day, authorities remain vigilant to prevent any escalation of tensions.

President predicts record-breaking revenue for 2025 amid economic reforms

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April 28, Colombo (LNW): President Anura Kumara Dissanayake announced yesterday that 2025 is poised to become the highest revenue-generating year in Sri Lanka’s history.

Addressing an election rally in Beruwala, he credited the strong performance of key government institutions for the promising outlook, highlighting that the Inland Revenue Department had surpassed its targets in January, with the Customs Department exceeding expectations across both January and February.

The President reaffirmed the government’s commitment to safeguarding public funds, assuring citizens that tax revenues would be directed solely towards national development and public welfare.

Emphasising a balanced approach, he stated that whilst taxes would remain reasonable to encourage economic activity, they would be strictly managed to ensure businesses continued to thrive without undue burden.

Reflecting on the mandate given to the National People’s Power (NPP) by the electorate, President Dissanayake stressed that his administration had made significant strides towards fulfilling promises to revitalise the economy, eradicate corruption, enforce accountability, strengthen democracy, and restore Sri Lanka’s reputation on the global stage.

He noted that although challenges remained, considerable progress had been made in a relatively short period.

President Dissanayake pointed to key achievements, including stabilising the national economy, maintaining a steady exchange rate over recent months, and successfully lowering interest rates to under 10 per cent, making credit more accessible to businesses and individuals alike.

In addition, he underlined his government’s efforts to curb extravagant expenditure, revealing that the privileges previously extended to the President, Ministers, and Members of Parliament had been substantially curtailed.

The funds saved through these cost-cutting measures, he said, were being reinvested into programmes aimed at alleviating the burdens on ordinary citizens.

Furthermore, the President asserted that the rule of law now prevailed across all sectors of society, ensuring that justice was applied uniformly, regardless of political or social status.

He reiterated the government’s unwavering dedication to creating a transparent, accountable, and fair governance framework, which he said was crucial for rebuilding public trust and laying the foundations for long-term national prosperity.

EU GSP+ Monitoring Mission to arrive in Sri Lanka to assess compliance progress

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April 28, Colombo (LNW): A delegation from the European Union tasked with monitoring the Generalised Scheme of Preferences Plus (GSP+) arrangements is set to commence its visit to Sri Lanka today (28).

The mission will remain in the country until May 07, 2025, during which it will undertake a comprehensive review of Sri Lanka’s adherence to commitments underpinning the continuation of GSP+ trade privileges.

This visit forms part of the EU’s regular biannual assessment process, a framework to which Sri Lanka has pledged ongoing cooperation. According to a statement issued by the European Union, the delegation’s programme will include discussions with government officials, members of Parliament, key institutions, civil society organisations, business representatives, and trade unions.

Additionally, the team is expected to conduct field visits to gather on-the-ground insights into the practical application of the country’s commitments.

Sri Lanka remains one of only eight low- or lower-middle income nations currently benefiting from the GSP+ scheme. This special incentive arrangement is designed for countries that have ratified and are implementing 27 key international conventions covering human rights, labour standards, environmental protection, climate change mitigation, and good governance.

The continuation of GSP+ benefits hinges upon the effective and demonstrable enforcement of these conventions, monitored through missions such as this and subsequent detailed reporting.

The European Union, comprising 27 member countries with a combined population of approximately 450 million, stands as Sri Lanka’s second-largest export destination. In 2024 alone, Sri Lankan exports to the EU were valued at around 2.7 billion euros, with an estimated 85 per cent of these goods enjoying duty-free access under the GSP+ arrangement.

The scheme remains vital for Sri Lankan industries such as apparel, fisheries, and agricultural produce, making the outcome of this mission particularly significant for the nation’s economic landscape.