The Inland Revenue Department (IRD) announced that locally produced liquid milk and yogurt are now exempted from Value Added Tax (VAT), following the enactment of the VAT (Amendment) Bill. According to the Department, the VAT exemption came into effect on 11 April, the day the bill received parliamentary assent from Speaker Jagath Wickramaratne. The bill was passed in Parliament on 9 April. It's worth noting that to qualify for the exemption, liquid milk products must contain at least 50% fresh milk. The VAT was also removed on naphtha supplied by the Ceylon Petroleum Corporation (CPC) to the Ceylon Electricity Board (CEB) for electricity generation, it added.

Locally produced dairy products exempted from VAT: IRD

<ul><li>SHPDA appeals to Min. of Energy to intervene</li></ul> The Ministry of Energy stated that a decision regarding the Ceylon Electricity Board’s (CEB) directive to temporarily shut down several small hydropower plants, effective since 11 April, will only be taken after a comprehensive study, and that until then, the ministry will not intervene in the matter.This response came following an appeal by the Small Hydro Power Developers Association of Sri Lanka (SHPDA) to the Minister of Energy to intervene and withdraw the directive to shut down several small hydropower plants across the island.Speaking to The Daily Morning yesterday (16), the Secretary to the Ministry, Dr. Udayanga Hemapala said that a decision would be taken following a detailed study of the matter. However, he stated that no formal request has been submitted to the ministry regarding this issue. "We don’t know whether any request has been made as of now. To my knowledge, nothing has been sent. First, we need to examine the grounds of the issue and the basis for the said decision. Then, we can look into the allegations raised by the developers. We should consider both sides. However, a decision will be made after a comprehensive study. No decision has been taken so far to revoke the CEB’s directive," he said.Issuing a statement last week on behalf of the developers, SHPDA President Thusitha Peiris said that the decision made under the pretext of “stabilising the grid” during the festive season is a serious blow to Sri Lanka’s power sector and a direct threat to the nation’s energy security. However, in response to this claim, the CEB has reportedly&nbsp;stated that the decision to shut down the power plants was made due to the low demand for electricity during the New Year period, as factories, businesses, and other office premises remain closed.

CEB ON SMALL HYDRO POWER PLANTS: MINISTRY TO INTERVENE ONLY POST-STUDY

<ul><li>Claim Eastern Province farmers who have begun paddy season haven’t received fertiliser&nbsp;</li></ul> Farmers’ groups claim that despite the Yala farming season already being underway and expected to continue over the next few months, farmers are yet to receive the fertiliser subsidy allocated for paddy cultivation.“This year’s Yala farming season has begun. The sowing of paddy in the Eastern Province has concluded, and the plants are now one to two weeks old,”&nbsp;National Agrarian Unity organisation President&nbsp;Anuradha Thennakoon said. He&nbsp;added that despite this progress, the fertiliser subsidy has still not been provided to the farmers.&nbsp;Farmers in the Eastern Province have not received either the first round of fertiliser or the related subsidies and they are still in the process of completing the required application forms, according to him.He explained to The Daily Morning yesterday (16) that even in other districts, paddy fields irrigated by small and large reservoirs should be cultivated by 30 April, and that sowing has already commenced in several of those areas. Thennakoon expressed concern that under these circumstances, farmers cultivating approximately 500,000 acres of paddy fields in those areas have not received the fertiliser subsidy.He blamed the relevant agricultural officials for the delay, attributing it to poor planning which he said is a longstanding issue. Noting that the fertiliser issue has continued despite Government changes, he emphasised that the failure to provide the subsidy has impacted the previous farming season as well.Attempts to contact the Agriculture Ministry in this regard were not successful.

Farmers bemoan lack of Yala fertiliser subsidy 

<ul><li> Dr. Siyambalapitiya dismisses allegation</li></ul> The Electricity Consumers’ Association (ECA) has lodged a complaint with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), calling for an investigation into an alleged conflict of interest involving the Chairperson of the Ceylon Electricity Board (CEB), Dr. Tilak Siyambalapitiya. In the complaint addressed to the CIABOC, the General Secretary of the ECA, Sanjeewa Dhammika claimed that a particular private company, which provides consultancy services, is owned by Dr. Siyambalapitiya, and that the said company has been providing services to the CEB, even after he (Dr. Siyambalapitiya) assumed the role as the CEB Chairperson in September 2024. "This company, which was registered as a service provider to the CEB prior to his appointment, continued to receive contracts under his Chairmanship. One of the most recent projects is a consultancy contract for the Ministry of Energy, which was funded by the World Bank. The report for that contract was released last month (in March). The provision of such services while holding the top position at the CEB raises concerns of a conflict of interest and possible corruption," Dhammika pointed out. The ECA's complaint further stated that the relevant company has also been providing services to the Public Utilities Commission of Sri Lanka (PUCSL). ECA stated: "In addition to the Energy Ministry, this company has been providing services to the PUCSL. There have also been incidents when this Company was blacklisted by the PUCSL due to the non-completion of projects."When contacted by The Daily Morning, the PUCSL’s Director of Communications, Jayanath Herath said that while the company referred to by the ECA had provided services to the PUCSL on a few projects in the past, it was however not currently engaged in any work with the Commission.In response to a query by The Daily Morning regarding the allegation, Dr. Siyambalapitiya said: "Yes. I was the Managing Director of (the company in question), until I resigned in late September 2024. The company is not a service provider to the CEB."

Complaint to CIABOC against CEB Chair

<ul><li>Claims would result in income loss in boarding houses/shops/support svcs.</li><li>Observes drop in export revenue, Rupee depreciating, hike in borrowings, decline in consumer goods demand</li></ul> Former President Ranil Wickremesinghe warned that Sri Lanka faces the potential loss of more than 100,000 jobs in the country as a result of the new trade tariff policy implemented by the United States (US).Delivering a special statement yesterday (16), Wickremesinghe described the situation as an economic emergency and urged the Government to inform the public of the steps it is taking to address the looming crisis.“As tariffs increase, consumer demand for goods declines. This is not a hypothetical situation. It is already unfolding. One direct consequence of this will be job losses. Some estimate that over 100,000 jobs are at risk. Whether the number is exactly that or slightly lower, the figure is set to rise,” he stressed.&nbsp;Emphasising that the impact would not be limited to jobholders alone but would ripple across the broader economy, he stated: “People running boarding houses, shops, and other support services will also see their income affected. This will, in turn, hurt our overall economy.”He further noted that a drop in export revenue could worsen Sri Lanka’s balance of payments, weaken the Rupee, and lead to a further slowdown in economic growth.&nbsp;“As our earnings decline, our borrowing-related needs will increase. The economy may slow down further, and the Rupee could depreciate even more,” Wickremesinghe cautioned.Calling for immediate diplomatic engagement with the US, Wickremesinghe stressed the urgency of transparent communication.&nbsp;“The Government must treat this as an emergency and clearly communicate what measures are being taken locally. Otherwise, one problem will follow another,” he added.

US tariffs’ impact: Ranil warns of 100,000+ job losses 

<ul><li>Agriculture Dept. expects 2.2 m MT from Yala harvest&nbsp;</li></ul> The Government does not expect an unusual increase in rice prices or a shortage this year, but is prepared to import rice immediately if such a situation arises, according to the Deputy Minister of Trade, Commerce, and Food Security, R.M. Jayawardena.From time to time, the Sri Lankan market experiences unusual hikes in rice prices and shortages, particularly due to various tactics allegedly employed by rice mill owners and traders.Speaking to The Daily Morning on the current state of rice production, Jayawardena said that the Maha cultivating season's harvest was slightly lower than expected. “The Department of Agriculture had projected a harvest of 2.9 million metric tonnes (MT) of paddy, but, it now looks like we’ll receive around 2.5 million MT.”Despite the shortfall in the main Maha season, he noted that the Yala season has seen more land cultivated than initially planned, due to factors such as favourable rainfall. “If everything goes without any challenging issue in the Yala season, we expect to harvest 2.2 MT,” he added.Speaking further, Jayawardena said: “Around 3.5 to 3.6 million MT of paddy are required for human consumption each year. We also need about 450,000 MT for animal feed, and around 150,000 to 200,000 MT for other purposes. So, we’re confident that the country can produce the required amount of paddy for the year.”He also said that there is no justification for an increase in rice prices and noted that the Government would be closely monitoring the market. “We are aware that some rice producers may be engaging in organised efforts to withhold rice from the market. If we see such actions, we will take appropriate action against them. In the meantime, we are also ready to import rice in case of any emergency," he noted.The people face sudden increases in rice prices and unexpected shortages in the market from time to time, due to certain actions taken by some rice mill owners and traders. They sometimes hold back stocks, create artificial shortages, or delay releasing rice to the market in order to drive up prices and make higher profits.&nbsp;

Rice reserves: Imports if ‘unusual’ price hikes, shortage: Govt. 

<ul><li>Responding to conflicts between Arch. Dept.-historic site administrations</li></ul> Noting practical difficulties in implementing certain provisions of the Antiquities (Amendment) Act, No. 24 of 1998, the Ministry of Buddhasasana, Religious, and Cultural Affairs stated that it has identified the need to amend several outdated laws, including the Act.There have been several recent incidents where administrators of historic sites including Buddhist temples and the Department of Archaeology have come into conflict, mainly due to the latter halting renovation and construction related activities, citing violations of the provisions of the Antiquities Act.When queried by The Daily Morning as to whether they would pay attention to the issue, the Deputy Minister of Buddhasasana, Religious, and Cultural Affairs, Gamagedara Dissanayake said that the department was required to act within the framework of the related laws. “The Antiquities Act is a powerful piece of legislation. Because of that, the department is bound to follow it. As a result, constructions and renovations in certain protected areas are halted.”He also noted that the Antiquities Act, along with other related laws such as the Buddhist Temporalities Ordinance (Vihara Devalagam Act), were quite old and in need of revision. “These are very old laws. Naturally, when they’re implemented today, practical problems come up. There are regular disagreements between site administrators and the Archaeology Department. Both parties have valid concerns, and we can't say who's wrong or right."Speaking further, Dissanayake said that although no final decision had been made yet, there was a strong view within the Government and the society that such outdated laws should be amended. The Deputy Minister said: “If there are rules and regulations that cause unnecessary obstacles, they should be updated in a timely and practical manner. We have identified the need to amend the Antiquities Act and several other laws."Originally enacted in the 1940s, the Antiquities Act aims to preserve and protect Sri Lanka's cultural heritage including ancient monuments, sites, and artifacts, by regulating activities such as excavations, issuing archaeology permits, and prohibiting the willful damage or destruction of antiquities.

Antiquities Law to be amended 

Emphasising that adhering to international norms is not a betrayal of the nation, former Speaker of the Parliament and the incumbent Leader of the National Movement for Social Justice, Karu Jayasuriya urged the Government to sincerely address the human rights violations related allegations against Sri Lanka.Making a statement on the need to protect the Generalised Scheme of Preferences Plus (GSP+) tax concession granted to Sri Lanka by the European Union (EU), he said that the country must ensure that cooperation among all parties irrespective of political differences continues to protect it. As a delegation from the EU is due to visit Sri Lanka for the next review, he said that the Government must demonstrate credible progress on several issues including the Prevention of Terrorism (Temporary Provisions) Act (PTA) and allegations of human rights violations.&nbsp;“The PTA has long been criticised both domestically and internationally for misuse and abuse. A committee appointed by the Minister of Justice and National Integration is currently reviewing the Act. Its recommendations must be implemented without delay, and a broad, inclusive public dialogue should begin immediately. The Online Safety Act, No. 09 of 2024 has also faced strong resistance from journalists and the EU. Certain decisions made under this Act have further damaged Sri Lanka’s image. Political consensus and transparency are important in addressing these concerns,” he said.He also said that as promised by President Anura Kumara Dissanayake during the election campaign, the public – especially in the North and the East – has placed hope in the introduction of a new Constitution.&nbsp;“Much groundwork was completed in the eighth Parliament. What remains is a short-term, achievable task. A clear roadmap and timeline are now necessary. Allegations of human rights violations should also be confronted with sincerity. Acting in accordance with international norms is not a betrayal of the nation. It is a step toward justice and dignity,” he said.

EU GSP+ review: Karu wants Govt. to address allegations  

The Employees’ Provident Fund (EPF) has strengthened its position as the leading entity in the superannuation sector, accounting for 81% of the sector’s total assets by the end of 2024.The Fund’s net worth rose by 12.6% year-on-year to Rs. 4,375.7 billion, up from Rs. 3,886.7 billion in 2023, primarily driven by robust investment-based returns and a rebound in net contributions.Total contributions received during 2024 increased by 11.3% to Rs. 234.4 billion, while refund payments to members and legal heirs fell by 12.9% to Rs. 188.1 billion. This shift translated into a positive net contribution of Rs. 46.3 billion for the year, a significant turnaround from the Rs. 5.3 billion net outflow recorded in 2023.The EPF recorded an investment income of Rs. 513.8 billion in 2024, marking a 6.8% increase from Rs. 481.1 billion the previous year. Interest income, the Fund’s primary revenue stream, rose by 2.9% to Rs. 455.1 billion. Dividend income surged by 82.9% to Rs. 5.5 billion, while net fair value gains from listed equity investments more than doubled to Rs. 49.2 billion.The Fund maintained an operating expenses to gross income ratio of just 0.6%, demonstrating continued operational efficiency. However, its tax expenditure climbed to Rs. 64.1 billion, reflecting higher investment earnings.In light of the Fund’s performance, the Governing Board of the Central Bank has approved an interest rate of 11% on member balances for 2024, subject to the approval of the Ministers of Labour and Finance.These details were disclosed in the Central Bank’s Annual Economic Review 2024.

Locally produced dairy products exempted from VAT: IRD

CEB ON SMALL HYDRO POWER PLANTS: MINISTRY TO INTERVENE ONLY POST-STUDY

CEB ON SMALL HYDRO POWER PLANT ...

Farmers bemoan lack of Yala fertiliser subsidy

Farmers bemoan lack of Yala fe ...

Complaint to CIABOC against CEB Chair

Complaint to CIABOC against CE ...

US tariffs’ impact: Ranil warns of 100,000+ job losses

US tariffs’ impact: Ranil warn ...

Rice reserves: Imports if ‘unusual’ price hikes, shortage: Govt.

Rice reserves: Imports if ‘unu ...

Antiquities Law to be amended

Antiquities Law to be amended

EU GSP+ review: Karu wants Govt. to address allegations

EU GSP+ review: Karu wants Gov ...

EPF strengthens position

EPF strengthens position

CEB ON SMALL HYDRO POWER PLANTS: MINISTRY TO INTERVENE ONLY POST-STUDY

CEB ON SMALL HYDRO POWER PLANT ...

Farmers bemoan lack of Yala fertiliser subsidy

Farmers bemoan lack of Yala fe ...

Complaint to CIABOC against CEB Chair

Complaint to CIABOC against CE ...

US tariffs’ impact: Ranil warns of 100,000+ job losses

US tariffs’ impact: Ranil warn ...

Rice reserves: Imports if ‘unusual’ price hikes, shortage: Govt.

Rice reserves: Imports if ‘unu ...

Antiquities Law to be amended

Antiquities Law to be amended

EU GSP+ review: Karu wants Govt. to address allegations

EU GSP+ review: Karu wants Gov ...

EPF strengthens position

EPF strengthens position

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US tariffs’ impact: Ranil warns of 100,000+ job losses

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Antiquities Law to be amended

Antiquities Law to be amended