Category: Daily Financial Times

Three private sector chambers filed a writ application before the Court of Appeal on Tuesday challenging the Inland Revenue Department’s (IRD) decision to commence collecting Value Added Tax (VAT) from 1 October without first operationalising the legally mandated automated refund mechanism.

The chambers are the Free Trade Zone Manufacturers’ Association (FTZMA), the National Chamber of Commerce of Sri Lanka (NCCSL) and the Sri Lanka Chamber of Small and Medium Industries (SLCSMI).

The Petitioners, representing exporters, deemed exporters, sub-contractors to exporters, service providers in the export supply chain, SMEs, and the broader business community, state that collecting VAT from export-related businesses without a proper functioning refund system, and without publishing the conditions of the proposed Risk-Based Refund Scheme in the Gazette, is unlawful, unreasonable, and a violation of constitutional rights.

According to the Petitioners, the Government abolished the Simplified Value Added Tax (SVAT) scheme earlier this year, after it had been postponed by the previous administration at the request of the export community.

That abolition was accompanied by a statutory requirement that a new automated, risk-based VAT refund scheme be in place from 1 October 2025. To date, no such system has been implemented, nor have the selection criteria for the refund scheme’s Green, Amber, and Red channels been published.

The Chambers question the feasibility of IRD assurances that refunds will be paid within 45 days, noting that long-outstanding VAT refunds due to exporters dating back to 2010 remain unsettled.

They further express concern that, contrary to international good practice where refund-risk channels are selected automatically by transparent algorithms, the IRD now proposes appointing a committee to select channels, creating opportunities for discretion, delay, and potential abuse.

They cite similar risks observed when committees, rather than automated systems, are involved in operational decisions such as the release of containers by Customs.

The Chambers emphasised that the SVAT system, implemented nearly two decades ago by the IRD for registered exporters, deemed exporters, and export supply-chain service providers, functioned smoothly and transparently because it avoided cash transactions.

Instead, it relied on IRD-issued vouchers exchanged within the IRD’s online system between buyers and sellers. While the IRD has indicated to the IMF that there were ‘leakages’ under SVAT, the Petitioners note that, despite being administered and monitored through the IRD’s own online system, no violators have been identified or named.

On industry estimates, any leakage would have been negligible (well under 0.01%), underscoring that SVAT was an effective and low-risk mechanism.

The Chambers also clarify that the IMF’s revenue objective for Sri Lanka is to raise government revenue to 15% of GDP; the method of achieving this is a policy choice for the Government. The IMF has not required the abolition of SVAT.

Multiple Chambers, including the International Chamber of Commerce, engaged with the IMF and urged against abolishing SVAT without a proven, automated refund system ready to replace it.

The Petitioners contend that the IRD’s advice to abolish SVAT has effectively reinstated a cash-refund regime that was historically vulnerable to delays and corruption.

The Chambers warn that immediate VAT collection in the absence of an automated refund system will create severe cash-flow stress across the export ecosystem, pushing many firms, particularly SMEs and indirect/deemed exporters, towards insolvency.

This, they argue, threatens employment, curtails domestic value addition, and undermines export competitiveness as the main exporters shift to importing raw materials and packaging materials rather than sourcing them locally.

The Petitioners caution that an export-supply-chain liquidity crunch could trigger a foreign exchange shortfall and jeopardise Sri Lanka’s capacity to meet international obligations by 2028.

Comparing the policy risk to the previous administration’s fertiliser restriction, implemented without adequate impact assessment, the Chambers argue that dismantling SVAT without a ready, automated refund alternative could inflict even greater economic damage.

SLIM Brand Excellence has received the highest number of entries in its history as the judging process formally gets underway.

SLIM said the record-breaking response underscores rising industry confidence and participation. This year’s competition includes an international judging component, bringing global expertise and elevated benchmarks to the evaluation process. The jury brief took place on 22 September, initiating a rigorous, multi-stage assessment designed to reward strategic clarity, creative strength, and measurable market impact. With enhanced oversight and transparent criteria, SLIM Brand Excellence continues to raise the bar for credibility and standards across the marketing and business community.

The momentum around this year’s cycle affirms SLIM Brand Excellence’s role as a catalyst for professional development and industry progress. Entrants represent a broad cross-section of sectors and disciplines, reinforcing the program’s relevance to brands at different stages of growth. As judging commences, participants can expect a clear, timely process overseen by an experienced jury panel with deep regional and international exposure.

Building on this success, SLIM Brand Excellence will continue to strengthen its framework and partnerships to align with international best practice, ensuring the platform remains contemporary, inclusive, and forward-looking. Details on category evaluations, shortlists, and subsequent milestones will be shared in due course through official SLIM channels.

The Government is to fast-track passport processing for overseas applicants, more efficient handling of dual citizenship requests, and expanding digitalisation to streamline administrative procedures.

This was discussed at a meeting held by Foreign Affairs, Foreign Employment and Tourism Acting Minister Arun Hemachandra at a high-level joint meeting bringing together senior officials of the Ministry’s Consular Division and the Department of Immigration and Emigration to review and enhance key aspects of Sri Lanka’s consular and immigration services.

The meeting, was attended by Additional Secretaries of the Consular and Foreign Employment Divisions, the Director General of Consular Affairs, the Controller General of Immigration and Emigration, senior Directors from both Departments, and the Chairman and Additional General Manager of the Sri Lanka Bureau of Foreign Employment (SLBFE).

Commending officials for their continued dedication, particularly for their efforts in successfully clearing the backlog of passport applications, the Deputy Minister said it was an achievement that significantly improved service delivery, especially for Sri Lankan citizens living and working overseas.

Discussions at the meeting focused on accelerating the processing of passport applications submitted from abroad, improving the efficiency of dual citizenship application handling, and expanding digitalisation to streamline administrative procedures.

Several operational and field-level issues were also examined with the aim of strengthening the quality and responsiveness of services offered by the two institutions.

‘We are committed to fostering greater coordination between institutions to ensure efficient, transparent, and people-centred service delivery for all Sri Lankans, both locally and overseas,’ Hemachandra said.

The national theme for World Children’s Day 2025, ‘Protect Us with Love – To Win the World,’ emphasizes the importance of building a safe, loving, and knowledgeable environment for every child.’ Bank of Ceylon has consistently committed to nurturing children’s futures by guiding them the leaders of tomorrow with love and care, while also encouraging them to develop the habit of saving from an early age.

Among BOC’s portfolio of products designed for young savers, the BOC Ran Kekulu Smart Children’s Savings Account remains the most popular children’s savings account in the country. In addition, the bank offers the BOC 18+ Account, which supports youth as they transition into adulthood, along with BOC 14+, and other dedicated savings accounts.

Speaking on the occasion, Mr. Priyal Silva, Deputy General Manager (Branch Operations) at Bank of Ceylon, said:

‘As the ‘Bankers to the Nation,’ we are committed to providing the next generation, who will bear the responsibility of tomorrow, with a host of benefits. The BOC Ran Kekulu Smart Account has been redesigned in line with evolving needs, combined with modern technology, to remain relevant for young savers. A key feature is the additional 1.5% interest rate above normal savings accounts. Once a child turns 18, the Ran Kekulu Smart Account automatically converts to a Youth Savings Account with the applicable benefits. Furthermore, we introduced the Ran Kekulu Smart Investment Account, which allows weekly, monthly, or quarterly deposits through standing orders. This account also offers an additional 2.5% interest above regular savings.’

Announcing a month of celebrations for World Children’s Day, Bank of Ceylon has also introduced a special cash reward scheme to encourage children’s savings. Accordingly, a cash reward of Rs. 500 will be credited to children’s savings accounts with a fresh deposits from Rs. 5,000 to Rs. 10,000, and a cash reward of Rs. 1,000 will be credited to accounts with a fresh deposits exceeding Rs. 10,000, directly to the child’s account.’

The Ran Kekulu Smart Account also provides insurance protection at no extra cost. Children, parents, and guardians are covered under this scheme, which offers up to Rs. 150,000 for accidental injuries and 12 critical illnesses. In the unfortunate event of the death or permanent disability of a parent or guardian up to the age of 65, a benefit of up to Rs. 1 million is paid. To qualify, accounts must maintain a minimum balance of Rs. 50,000 for 12 months. For hospitalization of the child, a minimum balance of Rs. 5,000 for the same period applies.

BOC further supports children’s education and creativity through initiatives such as the annual Ran Kekulu Seminars, conducted across all provinces for Grade 5 Scholarship Examination candidates, and the Punchi Picasso art competition. Each year, 2,000 Ran Kekulu account holders with top marks at the Grade 5 Scholarship Examination are awarded scholarships of Rs. 15,000 each, totaling Rs. 30 million.

Speaking further, Mr. Silva added:

‘Bank of Ceylon has taken significant steps to support both present and future generations through a range of financial products such as savings accounts, fixed deposits, debit cards, and online banking facilities. For senior citizens, we offer the ‘BOC Senior Citizen’ account to provide added benefits for a comfortable retirement. In this way, BOC works to secure the future of children as well as the retirement of elders. We are also committed to introducing innovative financial services to meet evolving national needs.’

For over 86 years, Bank of Ceylon has been a cornerstone of Sri Lanka’s financial landscape, connecting individuals and businesses to global opportunities. BOC’s extensive network with over 2,300 touch points spread across the nation, ensures that bank’s customers have convenient access to a wide range of financial services. Moreover BOC was ranked as the top Sri Lankan Bank among the Top 1000 World Banks 2025 and the Banker of the Year 2021, 2023 and 2024 by The Banker Magazine UK, The most valuable Sri Lankan brand by Brand Finance Lanka. BOC also received the People’s Banking Services Brand of the year at the SLIM KANTAR Peoples Awards 2024.Internationally, Bank of Ceylon has established a strong presence in key locations such as a Subsidiary in London, UK; branches in Male and Hulhumalé in the Maldives; Chennai, India; and the Seychelles.

World Children’s Day is celebrated in Sri Lanka on October 1st annually. This year the theme for World Children’s Day is ‘Nurture with Love – To Lead the World’.

The week leading up to Children’s Day has also been declared as the National Children’s Week. It will take place from 25th September to 1st October. Several programmes and initiatives will take place during this time.

Interestingly the date for World’s Children’s Day changes according to region and country. It was first proclaimed during the World Conference of Child Welfare in 1925 and since 1950 is celebrated by several countries on June 1st. Several other countries began celebrating it on November 20th to commemorate the issuance of the Declaration of the Rights of the Child by the UN General Assembly.

While here in Sri Lanka we celebrate it on October 1st each year, the day is a great reminder that children are often overlooked and are among the more vulnerable in our society. Giving them a space to grow in security and freedom, looking after their interests and making sure that their rights are protected, is a sign of a healthy and thriving country and people. Most importantly helping them grow in their creativity too, gives children the opportunity to discover their potential and what they would like to be when they grow up.

While conventional education is and always will be a strong foundation for our children, we must not forget that every child cannot fill the formulaic mold. As parents and teachers, giving room for a child’s imagination and encouraging them with what they are good at, can help nurture them to become good leaders and grow to bring true change in the world around them.

In the Junior Mirror, which is the children’s section of the Daily Mirror, you will find a space for your kids to discover creativity and grow their imagination. So get your children to read, to write, to draw and paint, encourage them to do more activities that they love, to nurture a future in which they will find contentment, joy and peace.

India overcame pressure and difficult batting conditions to score a first-up win at the ICC Women’s Cricket World Cup (CWC) 2025.

India’s mission to claim a maiden 50-over Women’s CWC is off to a positive start, beating foes Sri Lanka by 59 runs (DLS method) in Guwahati. But it wasn’t all smooth sailing for the home side, who lost four wickets for just four runs in the middle stages of their innings, falling to 124/6 after 27 overs.

Sri Lanka’s sixth pole brought Amanjot Kaur to the crease, who steadied things for India alongside Deepti Sharma. Outside of putting their team’s batting depth on full show, the pair put on 103 runs for a stand that would help set up a first-up World Cup victory.

Post-game, Amanjot (57 off 56) shot down suggestions there were nerves when she came to the crease, clinging to full belief in not only the process, but the talent she shared a wicket with.

‘I knew that Deepti was with me,’ she told media. ‘We can make a long partnership. I wanted to stay on the wicket. The wicket was a little sticky, it was holding, it was moving, so as long as we played, we knew that we could get a decent total for India, and we did just that. I rarely get a chance to bat; I got the chance today and I enjoyed it when I batted and I’m sure Deepti was also very happy to do batting.’

‘If I would have played slowly and got out, then you’ll would say I wasted so many balls and didn’t get any runs. That is how cricket is. At least that ball will not be spoilt for the next person. Because ultimately, you have to put up some score on the scoreboard to defend.’

With a win on the board, India will look to stay in the moment and turn their attention to what promises to be a huge matchup with Pakistan in Colombo on Sunday.

‘We’re going to take this game by game,’ Amanjot continued. ‘Day one, we have done well and we have won, now we have to have eight more good days; hopefully, we will have eight [more] good days.’

Excited children of all ages rushed to over 31 HNB Customer Centers across the island to participate in mega-celebrations for ‘Singithi Day’ on Saturday 20th September in line with World Children’s Day.

The Singithi Day programme included a number of games and activities such as an art competition, face painting, musical chairs, magic shows, puppet shows and cartoon shows and saw all children enthusiastically taking part in the diverse and fund range of activities of the day.

HNB gave away valuable gifts and prizes to the winners of the games and activities, while every child who took part received a certificate of participation.

The Government yesterday issued Sri Lanka’s first residence visa under the Individual Investor Category, introduced through the amended Immigration and Emigration Regulations published in November 2023.

The visa was awarded to German national Dr. Prey Drechsel by Public Security and Parliamentary Affairs Minister Ananda Wijepala.

The scheme allows foreign nationals to qualify for a five-year visa with an investment of $ 100,000, or a 10-year visa with $ 200,000. Investments must be deposited in a Visa Programme Foreign Currency Account (VPFCA) at a licensed Sri Lankan bank.

The initiative is intended to attract foreign capital by linking long-term residency to direct investment in the country.

MTI’s international and Bhutan teams were in Thimphu as part of developing the strategic plan for the Bank of Bhutan.

Bank of Bhutan (BoB) is the largest and oldest commercial bank in Bhutan, established in May 1968 under a royal charter. It operates a network of over 45 branches across Bhutan, offering a wide range of financial services, including retail and corporate banking, investment banking, mortgage loans, and online banking. The bank is jointly owned by Druk Holding and Investments Ltd., which holds 80% of its capital, and the State Bank of India, which owns the remaining 20%.

MTI Consulting is an internationally networked strategy consultancy, having carried out assignments in 51 countries over the past 28 years.

A new three-storey ward complex costing Rs. 1 billion has been opened at the Dharga Town District Hospital, with Health and Media Minister Dr. Nalinda Jayatissa attending the ceremony.

The project is part of a Chinese-funded initiative to upgrade 13 hospitals across the country.

The 38,400-square-foot facility includes a 96-bed maternal and paediatric ward, a four-bed ICU, general wards, and an outpatient department. The Health Ministry has set aside an additional Rs. 50 million to procure essential medical equipment.

According to Dr. Jayatissa, the facility addresses a longstanding requirement in the area and will help reduce pressure on the Kalutara and Beruwala hospitals. Staffing will be expanded gradually, with more doctors, nurses, and support personnel to be deployed.

The hospital, managed by the National Institute of Health Sciences, is expected to significantly improve access to healthcare in the Kalutara District.