Category: Daily Financial Times

The Bangladesh subsidiary of JAT Holdings PLC, Asia Coatings Ltd., (ACL) has acquired a strategic site in Singair as part of the group’s continued commitment to Bangladesh, reinforcing JAT’s confidence in one of its most important international markets.

Bangladesh has grown into a significant contributor to JAT Holdings, accounting on average for approximately 30% of group revenue. JAT has maintained a presence in the country since 2001, steadily building its position through manufacturing capability, backward vertical integration, market development, and long-standing customer relationships. Supported by a strong portfolio of wood coating brands, ACL holds the No. 1 position in the industrial wood coatings market in Bangladesh.

The acquisition builds on the group’s established manufacturing presence in Bangladesh, including ACL’s alkyd resin plant, and gives ACL a stronger base from which to plan future warehousing and manufacturing expansion as demand continues to evolve.

Bangladesh’s construction sector is expected to return to a stronger medium-term growth trajectory, with industry projections forecasting average annual growth of around 6.3% between 2026 and 2029, supported by continued investment in energy, transport, and industrial infrastructure. For ACL, this outlook is directly relevant to demand across furnishing, manufacturing, and industrial wood coating applications, where supply continuity, inventory depth, and speed of response are becoming increasingly important.

Located in Singair, in the Manikganj District of the Dhaka Division, approximately 35 km from Dhaka city, the site places ACL closer to several key industrial customers while maintaining direct road connectivity to major retail and distribution hubs. This proximity is expected to support faster delivery cycles, improved coordination, and more efficient movement of inventory across the supply chain.

JAT Holdings CEO Nishal Ferdinando said: ‘Bangladesh is one of the Group’s key operating markets and a meaningful contributor to our regional performance. For a market of that level of importance, the focus has to go beyond near-term sales. We have to build the operating depth, resilience, and capacity needed to support long-term scale. The Singair site gives us the flexibility to plan the next phase of our Bangladesh footprint with greater confidence.’

As ACL continues to grow, bringing manufacturing, warehousing, and distribution planning into closer alignment is expected to support stronger operational efficiency and faster response to customer requirements.

This acquisition is also expected to benefit the employees supporting these operations. By being closer to the communities many employees commute from, the new location can help reduce travel time and contribute to a more practical day-to-day working environment as ACL continues to strengthen its local team.

JAT Holdings Director/Country Head – Bangladesh Shamara Wanniarachchi said: ‘For the Bangladesh operation, the value of this site is in how it allows us to plan manufacturing, warehousing, and customer servicing together. As demand grows, those areas need to move in closer alignment. Singair places us closer to several key industrial customers and gives us the ability to build capacity around the way the market is served, with better inventory planning, faster response, and stronger operational coordination.’

The Singair site supports JAT Holdings’ broader approach to regional growth: strengthening markets where the group already has scale, leadership, and long-term demand visibility. In Bangladesh, it creates room for ACL to build future manufacturing and distribution capability around an established business that continues to play an important role in group performance.

Judicial independence is the foundation of any democracy. Any attempt by the Executive, the Judiciary itself or any other institution to interfere with the administration of justice must be challenged.

But independence alone cannot sustain a justice system.

A Judiciary exists not only to remain free from interference but to dispense justice. For citizens, the strength of the legal system is measured not simply by constitutional safeguards, but by whether cases progress, judgments arrive, and remedies retain meaning.

That is the larger question behind Sri Lanka’s debate over extending the retirement age of judges.

Much of the argument has centred on whether the proposed reform risks weakening judicial independence. That concern deserves careful scrutiny. Democracies cannot afford institutions that bend to political pressure or executive influence.

But another question deserves equal scrutiny: what happens when an institution protected by principle struggles to perform its most basic function?

Sri Lanka’s courts are carrying more than 1.1 million pending cases. The burden falls most heavily on the lower courts, where delay directly affects citizens. For someone waiting years for a verdict, justice is not a constitutional abstraction. It is time lost, opportunities forgone and confidence diminished, not to mention crushing costs!

This backlog did not appear with one amendment or one administration. It reflects years of shortages, inadequate resources, weak infrastructure and procedures that allow cases to drift.

A justice system cannot preserve public confidence by defending principles while allowing performance to decay.

This is where the legal profession must turn its advocacy inward.

The legal profession does not merely work within the justice system; it shapes it.

Why did the profession tolerate a culture in which adjournments became routine? Why has reform of legal procedure never acquired the urgency reserved for constitutional disputes? Why has access to justice remained an aspiration while delay became the defining feature of litigation?

These are uncomfortable questions. They are also legitimate ones.

The retirement-age debate has drawn attention to judicial independence. It should also draw attention to the condition of the justice system itself.

Critics argue that extending judicial tenure could affect independence or restrict opportunities for younger judges. Those concerns deserve examination.

But so does another question: in a system carrying more than one million unresolved cases, should experience be treated as a liability?

Senior judges bring institutional memory, mentor younger colleagues and navigate complex legal questions. Renewal is necessary, but so is experience.

The debate exposes an uncomfortable inconsistency, as one lawyer pointed out in his column in Monday’s FT.

Within the legal profession, experience is prized. Senior lawyers continue to practise, teach, write, advise institutions and shape public life well beyond traditional retirement ages.

Why should experience become a problem only when it resides on the Bench?

If the legal profession can mobilise with such speed when judicial independence is perceived to be under threat, why has it not mobilised with equal resolve against delays that have denied timely justice to generations of litigants? That is not a political question. It is a professional one.

The International Association of Judges this week urged the Government to reconsider the proposal, not because altering retirement ages is inherently objectionable, but because of what it described as the “widely perceived” purpose behind the measure.

That distinction is revealing. The controversy is now driven as much by perception as by law. For a profession trained to distinguish evidence from inference, that should be an uncomfortable place to stand.

The legal profession has every right to challenge governments. That duty is indispensable in a democracy. But it has another duty that receives far less attention: confronting the failures within the system it serves.

Judicial independence is not an end in itself. It exists so that justice can be delivered.

Until the legal profession pursues reform with the same determination that it resists ‘perceived’ encroachments on judicial independence, one question will continue to linger: who is defending justice itself?

New York-based Artist and Researcher-abiraahmi, recently released KAPALI, an electronic music project inspired by Chennai’s Sri Kapaleeswara Temple, blending Sanskrit, Tamil and English vocals with contemporary production.

Marking her production debut, the release showcased a distinct fusion of South Asian musical influences and modern electronica, shaped by her Sri Lankan and Indian roots, upbringing in Dubai, and life in New York.

Released in two chapters, chapter one of KAPALI features the original cinematic arrangement and spoken-word Reprise that unpacks the story behind the song. Chapter two transforms those themes into a bass-heavy future rave remix.

The project was inspired by a visit to Chennai in March 2026, following the passing of her grandmother, Shantha Kannaiyan.

Speaking on the new release, abiraahmi stated: ‘KAPALI is about destruction and the reformation that can emerge from it. Returning to a place that has been part of not just my upbringing, but my parents, and my grandparents, had me thinking about the many different people and different versions of the same people that have passed through those temple grounds over generations; the people who once were, who we were, and who we are.’

The visit coincided with the Thayer festival-a period of celebration in the city, where the streets of Mylapore bustled with song and dance, creating a powerful contrast between personal grief, and collective joy that ultimately shaped the emotional foundation of the tracks.

Drawing on her background in research, abiraahmi approached KAPALI through both personal reflection and observation. Her work exploring human development informed the creative process, prompting her to look beyond grief and consider how memory, culture and identity are carried across generations.

While her artistic practice began in Dubai more than a decade ago through song writing and live performances, KAPALI marks abiraahmi’s artistic evolution with her first self-produced project. Developed over 3 months, KAPALI was conceived as a three-part body of work that captures a range of how abiraahmi experienced Kapaleeswara – as a wound, as a memory, and, finally, as a release. KAPALI and its accompanying future rave remix are available now on all major streaming platforms.

abiraahmi is a Sri Lankan-Indian artist, producer and researcher based in New York. Raised in Dubai, she began performing in the city’s independent arts scene as a teenager before building a creative practice centred on music and storytelling. Through releases such as Validation and, most recently, KAPALI, her work explores themes of identity, resilience, wellbeing and transformation. KAPALI, released between June-July 2026, marked her first self-produced project.

Softlogic Automobiles Ltd., a subsidiary of Softlogic Holdings PLC, has been appointed the authorised distributor for Greaves Ampere, one of India’s leading electric two wheeler brands, marking the manufacturer’s formal entry into the Sri Lankan market.

The partnership brings Ampere’s electric two wheeler range, comprising the Nexus, Magnus Neo, Magnus Gmax and Reo Vyb models, under the Softlogic Group umbrella. The brand will be officially unveiled at the Autovision Colombo Motorshow 2026, with availability expected by August. Sales will begin at the Softlogic Max showroom in Wattala, with the dealer network expanding islandwide by the end of the year.

Greaves Ampere operates under Greaves Electric Mobility, a company with a growing footprint across international markets and a product portfolio built on engineering credentials developed over decades in the Indian mobility sector. Softlogic Automobiles said the brand’s reputation and range of models made it the natural choice as the group looks to expand its presence in Sri Lanka’s electric vehicle segment.

‘At Softlogic Automobiles, we are committed to bringing world class mobility solutions to Sri Lanka,’ said Softlogic Automobiles Sector Managing Director Hemantha Gunawardena. ‘We are proud to introduce Greaves Ampere, one of India’s leading electric two wheeler brands, as part of our vision to support the country’s transition towards smarter and more sustainable transportation. Through this exclusive partnership, we aim to provide Sri Lankan customers with innovative electric mobility solutions backed by trusted after sales service and the strength of the Softlogic Group. We believe this marks the beginning of an exciting new chapter in Sri Lanka’s automotive industry.’

The company has positioned Ampere to appeal to a broad customer base, from young professionals, university students and urban commuters to families, first time vehicle buyers, fleet operators and delivery riders. Environmentally conscious consumers looking to move away from fossil fuel dependent transport are also expected to form a core part of the customer base, as Sri Lanka’s electric two wheeler segment continues to grow amid rising fuel costs and government incentives for cleaner mobility.

Softlogic Automobiles said the long term goals of the partnership go beyond product sales. The company aims to establish Ampere as a leading electric two wheeler brand in Sri Lanka, expand its dealer network across the island and increase broader awareness of electric mobility as a viable alternative to conventional transport. After sales support and customer experience will remain central to the rollout, the company said, alongside a wider commitment to supporting Sri Lanka’s long term sustainability goals.

The distribution agreement adds to Softlogic Automobiles’ existing portfolio and reflects a broader push by the Softlogic Group into sustainable transport solutions. With electric two wheelers gaining traction across South Asia, the entry of an established Indian brand backed by a well known local distributor is expected to accelerate adoption in Sri Lanka’s urban centres in particular.

Further details on pricing, financing options and the expanded dealer network are expected to be announced closer to the brand’s official launch in August.

As global markets raise their expectations for manufacturing quality, traceability and operational efficiency, Alumex PLC, Sri Lanka’s leading aluminium manufacturer and a member of the Hayleys Group, has deployed four key AI and IoT-enabled digital innovations that directly strengthen its capacity to compete internationally and supply large-scale infrastructure projects vital to the country’s economy.

The deployments mark a significant step in Hayleys’ broader strategy to embed digital and AI transformation across its industrial portfolio, moving from isolated technology pilots to Group-wide capability that raises standards across sectors. The initiatives were delivered in collaboration with the Hayleys Group Digital Transformation Unit and technology partners UTECH and Dialog H One.

With approximately half of its revenue generated through exports to 17 countries across five continents including the UK, USA, Canada, Australia, New Zealand, Switzerland, Italy and Singapore, Alumex operates in an environment where quality consistency, production efficiency and sustainability credentials are the baseline requirements of global and local markets.

Alumex PLC Managing Director Pramuk Dediwela said, ‘Alumex competes in demanding international markets, and these initiatives are investments in our ability to meet the standards our customers expect, protect and grow our export business, and build a more capable and resilient organisation.’

‘These initiatives, developed in collaboration with the Hayleys Group Digital Transformation Unit to address these imperatives, reflect a philosophy that distinguishes Hayleys’ approach: digital transformation that empowers people, not just systems. By combining advanced technologies with the expertise of our teams, we are building smarter manufacturing capabilities that strengthen our competitiveness today while preparing the business for the future.’

At the centre of this transformation is a new AI and IoT-enabled aluminium extrusion line, replacing an older production system and introducing advanced digital capabilities to improve manufacturing precision, productivity and resource efficiency.

The new system strengthens production capacity while enabling greater process control, supporting consistent product quality for both international customers and Sri Lanka’s growing infrastructure sector. The technology is also expected to deliver significant energy efficiencies compared to traditional extrusion systems, contributing to Alumex’s sustainability objectives.

Complementing this investment is the AI-driven Golden Batch for Extrusion Digitisation, which enhances visibility across extrusion operations to support consistent manufacturing performance, continuous improvement and greater operational excellence. The capability strengthens Alumex’s ability to deliver high-quality products while creating a strong foundation for future digital manufacturing initiatives.

The company has also introduced an AI-powered Scrap Optimisation Tool that strengthens material planning, optimises alloy utilisation and supports more efficient resource management. The solution enhances manufacturing performance while advancing Alumex’s commitment to sustainable production and responsible resource utilisation.

Further strengthening digital accessibility across the organisation, the Alumex AI Knowledge Hub provides employees with instant access to operational knowledge, enabling faster decision-making and improving consistency in processes. By making critical information readily available, the platform empowers employees at every level to make better-informed decisions and supports a more connected, agile workforce.

In addition, an IoT-based Energy Monitoring System implemented across its Ekala, Sapugaskanda and Lindel manufacturing facilities, provides real-time visibility into energy consumption patterns. By enabling the company to identify inefficiencies and optimise energy use across its operations, the platform supports Alumex’s drive to improve energy efficiency and reduce its carbon footprint, while supporting informed decision-making, improved operational performance and enhanced sustainability reporting capabilities, which are increasingly important as global markets place greater emphasis on responsible manufacturing.

Together, these initiatives represent a significant step in Alumex’s evolution towards Industry 4.0 manufacturing, reinforcing its ability to compete in demanding export markets while demonstrating how digital innovation creates long-term value through smarter manufacturing, greater sustainability and empowered people.

Prime Group, Sri Lanka’s most awarded and trusted real estate brand, has expanded its islandwide presence with the opening of its newest, eighth branch in Gampaha at No. 6, Mangala Road, Gampaha, marking a significant milestone. The new service location strengthens Prime’s presence in the island, cement trust, and brings real estate solutions closer to customers in one of the country’s fastest-growing regions. Customers can now visit the Gampaha Branch from 8:30 a.m. onwards for all their real estate requirements.

Strategically located, the Gampaha branch has been designed to deliver a modern, technologically advanced customer experience. It reflects Prime Group’s vision of greater accessibility, convenience, and service excellence, consolidating its reputation as the nation’s real leader in modern real estate.

Prime Group CEO Ruminda Randeniya said, ‘Our presence in Gampaha has been established for many years. In fact, it was the location of the company’s very first land venture, right from our inception. The opening of a dedicated branch is a deliberate step towards the Group’s long-term growth strategy. Ideally positioned along the Central Expressway corridor, Gampaha has emerged as a rapidly developing commercial and transportation hub, strengthening our presence in this key regional location, reflects Prime’s commitment to purposeful expansion, customer-focused service, and excellence for every customer we serve.’

Throughout its 30 years in Gampaha, Prime Group has continued to expand its footprint in the district, consistently delivering trusted real estate solutions and developing a portfolio of landmark projects for the region. A legacy of regional growth now realised in the opening of the Gampaha branch, which follows the successful launch of Prime Group’s Kalutara branch in December 2025.

Though a physical branch was not established in Gampaha previously, Prime Group remained committed to serving the district by ensuring continuous access to its services and customer support. Over the years, Prime Group has delivered more than 3,000 land development projects and 12 housing and apartment developments in Gampaha, building a strong foundation of trust and reliability. The district is home to a diversified portfolio of real estate developments that cater to a wide range of customer aspirations. Innovative projects such as Yolo, Venezia, and J’adore, along with residential lifestyle developments such as The Palace, The Life, Prime Evoke, together with premier land development projects, reflect Prime’s commitment to delivering exceptional living experiences. Further strengthening its presence in the district, Prime Group has also introduced Prime Kadawatha, located in close proximity to the Kadawatha Interchange, providing seamless connectivity to all parts of the country, and being the only high-rise apartment project in Kadawatha, reflecting the Group’s ability to deliver thoughtfully designed developments that provide customers with modern, future-ready living solutions.

As Prime Group celebrates 30 years of excellence, the company continues to build on its legacy through strategic expansion, innovation, and future-focused developments. Landmark investments such as Port City Colombo echo the vision of taking Sri Lankan real estate to the global stage and building a footprint extending beyond the country.

Scope Cinemas, in collaboration with Sony Pictures Releasing International, raised the bar for Hollywood movie premieres in Sri Lanka with the spectacular launch of the film, delivering what is believed to be the country’s biggest movie premiere to date through an unprecedented series of fan experiences that culminated in an exclusive red carpet event and Sri Lanka’s first-ever movie-themed drone show.

The premiere, held at The Shoppes at City of Dreams Sri Lanka, brought together invited media and guests for an exclusive first screening of the latest Spider-Man blockbuster. The evening concluded with a breathtaking drone show inspired by the iconic Marvel superhero, creating a landmark moment for Sri Lanka’s entertainment industry and setting a new benchmark for blockbuster movie launches.

Leading up to the premiere, Sony Pictures Releasing International, together with Liberty Lands and Developments and Next Frame Global, transformed the film’s release into a nationwide celebration. Fans in Jaffna, Kurunegala, Katugasthota, Kandy, Kegalle, Moratuwa, Gampaha, Wattala and Colombo were given opportunities to meet Spider-Man in person, participate in interactive experiences and receive official Spider-Man merchandise, allowing audiences across the country to become part of the excitement surrounding one of the year’s most anticipated Hollywood releases. The celebrations also featured the Spidey Bus, which travelled through Colombo, bringing the world of Spider-Man directly to thousands of fans and building excitement across the city ahead of the premiere.

Commenting on the occasion, Scope Cinemas Ltd., Chairman Naveed Cader said: “At Scope Cinemas, we have always believed that audiences deserve experiences that rival those in the world’s leading entertainment markets. The premiere of Spider-Man: Brand New Day reflects our commitment to continually raising the standard of cinema exhibition in Sri Lanka by creating unforgettable experiences that extend well beyond the theatre. This is another milestone in our journey of bringing world-class entertainment to local audiences.”

Liberty Lands and Developments Ltd., Group General Manager – Marketing Chassy Cortes added: “With Spider-Man: Brand New Day, our objective was to give fans an experience they never had before. We took Spider-Man beyond the cinema by creating opportunities for fans across multiple cities to meet the character, enjoy interactive experiences and receive official merchandise-something that has never previously been possible in Sri Lanka. From taking the Spidey Bus across Colombo to organising Sri Lanka’s first movie-themed drone show and our first multi-location premiere, every element was designed to make this a truly memorable celebration for fans across the country.”

Next Frame Global Chief Executive Officer Daniella Nobile said: “Spider-Man: Brand New Day deserved a launch that matched the scale and excitement of one of the world’s most iconic film franchises. Seeing audiences across Sri Lanka engage with the film through experiences that extended far beyond the cinema demonstrates the growing appetite for world-class theatrical events. We are proud to partner with Scope Cinemas to bring global studio releases to Sri Lankan audiences in ways that continue to raise the standard of theatrical entertainment while strengthening Sri Lanka’s place within the global film industry.”

The premiere reflects Scope Cinemas’ continued investment in delivering world-class theatrical experiences while introducing innovative audience engagement initiatives that continue to redefine moviegoing in Sri Lanka.

Produced by Sony Pictures, Spider-Man: Brand New Day is the latest chapter in the globally celebrated Spider-Man franchise, bringing Peter Parker back to the big screen in a new adventure that continues one of cinema’s most successful superhero stories. The film opened in cinemas across Sri Lanka on 30 July 2026.

ocurement Committee (MCPC), the selected consultancy firm will be responsible for providing consultancy services for the establishment of the investment platform.

Finance Ministry…

The Ministry said interested consultancy firms must demonstrate experience in at least three national-scale or equivalent consultancy assignments completed during the past 10 years. Firms are also required to submit details of similar assignments, experience under comparable conditions and the availability of suitably qualified personnel to undertake the project.

The consultancy will be procured under the Quality and Cost Based Selection (QCBS) method in line with the National Procurement Agency’s Guidelines on the Selection and Employment of Consultants issued in August 2007.

Application documents, available in English, can be obtained from the Ministry from 4 to 24 August upon payment of a non-refundable fee of Rs.10,000 inclusive of SSCL and VAT. Documents may also be inspected free of charge during office hours at the Ministry.

The Ministry said technical and financial proposals must be submitted in separate sealed envelopes to the Chairman of the Ministry Consultants Procurement Committee at the Finance Ministry, The Secretariat, Colombo 1, no later than 2 p.m. on 25 August. Technical proposals will be opened immediately after the closing time in the presence of representatives of participating consultancy firms.

A pre-proposal meeting has been scheduled for 10 a.m. on 11 August at the New Auditorium of the Finance, Planning and Economic Development Ministry.

The motor vehicle industry generated Rs.896.4 billion in Customs revenue while more than 327,000 new vehicles were registered during the first six months of 2026, underscoring the sector’s contribution to Government revenue and signs of market recovery, according to the Ceylon Chamber of Commerce’s Motor Vehicle Industry Report 2025/26.

Local…

The report, released after a six-year hiatus following Sri Lanka’s suspension of motor vehicle imports, provides a comprehensive assessment of the industry’s economic contribution, policy developments, market trends and future outlook as imports resume.

According to the report, Sri Lanka’s automotive sector is gradually shifting from an import-driven model towards local value addition, with more than 15 vehicle assembly plants currently in operation and policies requiring a minimum 20% domestic content in locally assembled vehicles.

The Chamber said the publication examines the industry’s adaptation to the resumption of imports, evolving consumer preferences, technological advances and a changing regulatory environment, providing data and policy analysis for importers, assemblers, dealers, financial institutions, insurers, investors and policymakers.

The report also highlights structural changes in the global automotive industry, noting that one in four new cars sold worldwide is now electric, with electric vehicle sales surpassing 20 million units for the first time.

It further notes that artificial intelligence is reshaping vehicle development, from onboard safety systems to virtual vehicle testing, reducing development times by up to 50% while improving efficiency and innovation.

The report includes analysis of vehicle imports, registrations, fleet composition, ownership transfers and registration trends by brand, fuel type, cylinder capacity and district, alongside an assessment of industry challenges and emerging opportunities.

In July 2026, the World Bank re-classified Sri Lanka as an upper-middle income country with a per capita income of Rs. 1.6 million.

Again, according to the World Bank, Sri Lanka had a poverty rate of 22.1% in 2025. Its poverty line was set at Rs. 16,690 in March 2026. This means over one-fifth of Lankans earn just Rs. 205,000 per year.

In a country with an annual per capita income of Rs. 1.6 million, one-fifth of the population earn just Rs. 205,000 a year. This is not one country but two countries, with diametrically opposite interests and aspirations.

The Government understandably celebrated Sri Lanka’s elevation to upper-middle income status, yet had no concrete measures to offer the 22% of Lankans earning just Rs. 205,000 per year – other than more growth of the same unequal and un-equalising nature plus some handouts.

Sri Lanka reached the upper-middle income level for the first time in 2019. The country’s per capita income then was Rs. 688,719. Poverty rate was 14.3% and poverty line set at Rs. 6,966.

Compare middle-income Sri Lanka of 2019 with middle-income Sri Lanka of 2026 and the conclusion is inescapable. The recovery from the Rajapaksa-induced economic collapse of 2022 is real – and highly unequal. The recovery had made poor and the not-so-poor poorer and the rich richer.

The findings of the latest survey by the Centre for Policy Analysis (CPA) confirm this: 51% of respondents say that their household economic situation has worsened compared to a year ago; only 18% say it has improved while 30% say it remains unchanged. This is despite an increase in Aswesuma grants. Without that vital support, poverty and inequality are likely to break through the ceiling.

According to the World Bank, ‘The economic recovery has been unable to reverse crisis-induced welfare losses’ (https://documents1.worldbank.org/curated/en/099213205052641407/pdf/IDU-df6d36cb-59f0-4e01-af7b-4893b4d08e24.pdf). This inability is no accident but an inevitable outcome of the very nature of the recovery and the policy choices that shaped it.

In trying to fix the country’s broken finances, the Ranil Wickremesinghe administration decided not to reduce military expenditure significantly or to get rid of money-guzzlers like the SriLankan airline. Since new borrowing was impossible, this meant a near-exclusive reliance on taxes. And in late 2023, the Wickremesinghe administration made the fateful decision of placing a disproportionate share of the tax burden on indirect taxes.

On 1 January 2024, the Government increased VAT from 15% to 18% and removed VAT exemptions from 97 items including books and other educational materials. The impact on living costs was immediate and devastating. The VAT burden went up by 50% due to the removal of exemptions. And the poorest 40% of households experienced a massive increase of around 60% in VAT payments (https://www.ips.lk/talkingeconomics/2024/10/14/vat-hike-in-sri-lanka-who-really-pays-the-price/).

Today the poorest 10% of the population spend 10% of their income on VAT.

Sri Lanka’s economic recovery is real. But its sustainability is in question not least because it is built on the shifting sands of widening socio-economic disparities.