Category: Daily Financial Times

The Criminal Investigation Department yesterday informed Negombo Magistrate Silani Perera that four inmates were named as suspects regarding the Negombo Prison incident.

The Magistrate ordered the prison authority to produce the said suspects before the court.

The inmates named as suspects in connection with this incident are Supun Madhusankha alias ‘Hinatiyana Supun’, Shane Dylan Silva, Ashan Fernando alias ‘Kalu Malli’, and Sameera Sampath alias ‘Baba’.

Uncapped off-spin all-rounder Saransh Jain has earned a maiden Test call-up to India’s squad for the upcoming two-match series in Sri Lanka in August.

Saransh has been selected on the back of a hamstring injury to Washington Sundar, who has been officially ruled out of the first Test. Saransh could be in for a Test cap at the age of 33 following consistent performances for Madhya Pradesh in domestic cricket and India ‘A’.

All-rounder Ravindra Jadeja is also back in the fold after being rested for the one-off Test against Afghanistan in June. The rest of the 15-man squad wears a familiar look, with Jasprit Bumrah back to spearhead the attack. Bumrah and incumbent No.3 batter Sai Sudharsan, however, have been picked subject to fitness clearance, while Nitish Kumar Reddy, who is one of many players rehabbing currently at the CoE is not part of the squad.

INDIA SQUAD FOR SRI LANKA TESTS: Shubman Gill (Captain), KL Rahul (Vice-Captain), Yashasvi Jaiswal, Rishabh Pant, Sai Sudharsan*, Dhruv Jurel, Ravindra Jadeja, Kuldeep Yadav, Manav Suthar, Jasprit Bumrah*, Mohammed Siraj, Prasidh Krishna, Gurnoor Brar, Devdutt Padikkal, Saransh Jain

Congresswoman Chrissy Houlahan (D-PA) led a Congressional Delegation (CODEL) to Sri Lanka July 27-30 to strengthen the United States’ partnership with Sri Lanka and advance shared priorities for a free, open, and prosperous Indo-Pacific region.

Houlahan, an Air Force veteran, is a member of the House Armed Services Committee, where she is the Ranking Member on the Subcommittee on Military Personnel, and a member of the House Permanent Select Committee on Intelligence.

While in Colombo, the delegation will hold high-level meetings with government, military, and local leaders, including the Deputy Defence Minister Major General (Retd.) Aruna Jayasekara, Deputy Speaker of Parliament Dr. Rizvie Salih, and Opposition Leader Sajith Premadasa, to discuss a wide range of bilateral issues.

Representative Houlahan’s visit reflects the United States’ commitment to a robust bilateral relationship with Sri Lanka, addressing shared priorities such as countering transnational crime, deepening commercial ties and economic development, and promoting regional stability and security cooperation.

The Inland Revenue (Amendment) Act, No. 11 of 2026 and the Value Added Tax (Amendment) Act, No. 14 of 2026 have now been enacted, introducing significant changes to Sri Lanka’s tax enforcement framework. While much attention has been placed on the substantive tax changes, the amendments also strengthen the Inland Revenue Department’s enforcement powers and increase the criminal exposure for non-compliance.

1. Criminal prosecution for failure to obtain TIN and file income tax returns

The Inland Revenue amendments introduce a new framework for prosecuting tax offences, expanding enforcement beyond administrative penalties. Taxpayers may now face prosecution for failing to comply with key obligations, including failure to:

n Register with the Commissioner General of Inland Revenue

n File income tax returns

n Furnish certain tax returns required under the Act

n Submit annual statements

n Appear before the Commissioner General pursuant to a statutory notice

Prosecution will not commence automatically. The IRD must first issue a written notice and allow the taxpayer an opportunity to rectify the default.

Upon conviction, a taxpayer may be subject to a fine not exceeding Rs. 400,000, imprisonment of up to six months, or both.

Don’t wait for IRD notices:

Taxpayers should not wait until an IRD notice is issued. Businesses and individuals with outstanding registrations, returns or statutory filings should take timely steps to update their tax affairs, as non-compliance may now result in criminal proceedings.

2. Failure to pay tax? The path to court just got shorter

The amendments allow the IRD to recover unpaid taxes through Magistrate’s Court proceedings, where the tax in default may be treated as a Court-imposed fine. This does not apply where a review or appeal is pending, but once recovery begins, the focus will generally be on collecting the tax debt rather than revisiting the assessment.

Enhanced IRD powers must be matched by enhanced responsibility:

Given the evidentiary weight attached to the Commissioner General’s certificate, assessments must be raised on a proper factual and legal basis, with due process, proper notice and administrative fairness being carefully maintained.

3. The clock now runs longer for VAT offences

The VAT amendments allow the Attorney-General, or an authorised person, to prosecute VAT offences, confirming that such matters may now proceed through a formal criminal process where warranted.

Twelve year limitation period for VAT offences:

Criminal proceedings for VAT offences may now be instituted within 12 years from the date the offence was committed, or where an obligation was not performed, from the date it was due to be performed.

Extended exposure for non-disclosure and misrepresentation:

For non-disclosure or misrepresentation affecting VAT liability, the prosecution period runs from the date the correct VAT liability is finally determined, which may extend exposure during unresolved audits, disputes, reviews or appeals.

Taxpayers should not wait until an IRD notice is issued. Businesses and individuals with outstanding registrations, returns or statutory filings should take timely steps to update their tax affairs, as non-compliance may now result in criminal proceedings

4. Failure to issue valid tax invoices and Customs declarations now a criminal offence

Failure to provide valid tax invoices, customs goods declarations or other required documents may now attract a fine of up to Rs. 1 million, imprisonment of up to six months, or both, making accurate invoicing and record-keeping more critical.

5. Refund abuse now a criminal offence

It is now an offence to obtain or attempt to obtain a VAT refund through fraud, misrepresentation, false or misleading information or documents, or by concealing material facts. Taxpayers should ensure all VAT refund claims and supporting documents are accurate, complete and capable of substantiation.

6. Penalties increased by forty-fold

For offences committed before 1 October 2025, a person is liable to a fine not exceeding Rs. 25,000, imprisonment of up to six months, or both.

For offences committed on or after 1 October 2025, the penalties increase significantly to a fine not exceeding Rs. 1,000,000, imprisonment of up to six months, or both.

This forty-fold increase in the maximum monetary penalty underscores the Government’s commitment to strengthening tax enforcement and compliance.

The offences under the VAT act are as follows:

n Failure to register for VAT where registration is required.

n Failure to notify the CGIR of changes or other matters required under the VAT Act.

n Failure to issue a valid tax invoice, or issuing multiple invoices for the same taxable supply.

n Issuing a tax invoice without being legally entitled to do so.

n Failure to file VAT returns, annual adjustments or other prescribed returns, or comply with DIR notices.

n Failure, without reasonable cause, to answer questions before an Inland Revenue officer under a statutory notice.

n Providing incorrect information affecting their own or another person’s VAT liability.

nDiverting payments required to be made to the CGIR.

nWillfully obstructing or delaying the CGIR or authorised officers in exercising statutory powers.

nFailure to maintain proper books and records as required under the VAT Act.

nIssuing tax invoices despite not being VAT-registered.

n Failure to comply with Gazette Orders or CGIR guidelines

7. Digital Service Providers – may face penalties for non-compliance

Registered non-resident digital service providers may face an administrative penalty of up to Rs. 50,000 for failing to submit prescribed statements on supplies made to VAT-registered persons in Sri Lanka. The penalty may be reduced or waived where the failure was beyond the taxpayer’s control and later rectified.

Homeowners can now experience the lifestyle envisioned at VIMAN Ja-Ela as John Keells Properties officially unveils the show apartment at the VIMAN Ja-Ela project site, bringing prospective buyers one step closer to modern suburban living.

Built on the development site itself, the model apartment lets visitors walk through a real VIMAN Ja-Ela home and experience its true layout, proportions, finishes, and quality first-hand. Prospective buyers are invited to explore the carefully designed spaces that bring together comfort, nature, and modern living.

Nestled in the heart of Ja-Ela, VIMAN has been thoughtfully crafted to offer more than just a place to live, it is envisioned as a community designed around comfort, connection, and everyday living. Spanning six acres with more than 60% of the land dedicated to green and open space, the development is designed to place nature and a sense of community at the heart of daily life. A thoughtfully curated mix of lifestyle amenities, from a resident clubhouse, swimming pool, and gymnasium to walking and cycling paths, children’s play areas, and inviting outdoor social spaces will give residents of all ages room to gather, relax, and connect. Unique communal settings such as the Ambalama are set to further enrich this spirit of community, creating natural gathering points where neighbours can meet and unwind.

Commenting on the development, John Keells Group Vice President and Sales and Marketing Head Nadeem Shums stated, ‘We’re delighted to open the doors to our show apartment and invite people to experience VIMAN Ja-Ela for themselves. Describing the lifestyle we’ve envisioned here is one thing – but stepping into the space and seeing the design and quality first-hand is something truly special.’

VIMAN Ja-Ela, developed by John Keells Properties, represents a new chapter in suburban living where modern design, everyday convenience, and a strong sense of community come together in a carefully planned environment. Located just 4 km from the Ja-Ela interchange on the Colombo-Katunayake Expressway, the development pairs a peaceful, landscaped setting with exceptional connectivity to key urban centres. With the opening of the show apartment, visitors can now explore the layout, quality, and design of the residences while gaining a first-hand understanding of the lifestyle that awaits within this growing residential neighbourhood.

The Ambassador of the Democratic Socialist Republic of Sri Lanka to the Islamic Republic of Iran, Prof. Fazeeha Azmi, presented her Letters of Credence to the Islamic Republic of Iran President Dr. Masoud Pezeshkian at Office of the President in Tehran on 22 July 2026. She was the first lady Ambassador to have been appointed from Sri Lanka to the Islamic Republic of Iran.

Ambassador (Prof.) Fazeeha Azmi conveyed the warm greetings and best wishes of the President of Sri Lanka Anura Kumara Disanayaka and expressed confidence in the continued growth of bilateral relations between the two countries. She expressed her intention to explore new avenues of cooperation between the two countries, particularly in view of the 65th anniversary of the establishment of diplomatic relations between Sri Lanka and Iran, which will be commemorated in 2027.

President (Dr.) Masoud Pezeshkian congratulated Ambassador (Prof.) Fazeeha Azmi on the commencement of her new tenure as the Ambassador of Sri Lanka to Iran. He reaffirmed Iran’s interest to further strengthening the relations under the full activation of the existing bilateral framework with Sri Lanka, particularly in the economic sector. The discussion also focused on promoting tourism and higher education sectors of cooperation between Sri Lanka and Iran with the aim of deepening the people-to-people contacts.

While appreciating for all assistance, extended by the Government of Iran to Sri Lanka, Ambassador (Prof.) Fazeeha Azmi appreciated the Iran President’s commitment to further enhance bilateral relations and underlined the importance of further exploring trade, medicine and engineering services opportunities between the two countries. The Ambassador also expressed that Sri Lanka expects sustainable peace in Iran. The President assured his fullest support for the Ambassador’s work plan and encouraged continued engagement to explore new avenues of cooperation.

Ambassador (Prof.) Azmi is a senior academic, with a career spanning over 20 years in teaching, research, and scholarly work in the fields of youth, poverty and livelihood changes, women and migration, internal displacement, tourism, small-scale fisheries, urban cultural heritage and post-war development in Sri Lanka. She held appointments in Sri Lanka, India, Norway, Fiji, and Canada and contributed extensively to national and international research and academic collaborations.

Prior to being appointed as the Ambassador of Sri Lanka to the Islamic Republic of Iran, she served as a Professor in Geography at the University of Peradeniya in Sri Lanka. Prof. Fazeeha Azmi earned her first degree in Geography with a First Class from the University of Peradeniya. She did her M.Phil in Social Change and PhD in Geography at the Norwegian University of Science and Technology in Norway. She is a past pupil of Mawanella Zahira National School in Kegalle district.

Female labour force participation in Sri Lanka has fallen from a peak of over 45% in 1990 to approximately 30% today, reflecting a significant reversal on decades of hard fought progress.

While the reasons for this decline are not a mystery, they are also not discussed openly enough to have broken into public awareness in any meaningful way. The most recent explanation of why women leave the labour force can be found in the results of the Sri Lanka Labour Force Survey conducted by the Department of Census and Statistics.

56% of women who are not in the labour force cited domestic and care responsibilities as the reason for not seeking paid employment, where only 5% of men gave a similar response. The Time Use Survey conducted by the Department of Census and Statistics in 2017 found that on average, women spend four hours more per day than men on domestic activities, and an additional hour on direct care; children, the elderly, the sick.

In total, it is estimated that 86% of all unpaid care work in Sri Lanka is performed by women. The gap between what women are capable of and what the economy receives from them is not a deficit of ambition. It is a deficit of time – taken by work that no one counts.

Too often, the implications of this growing disparity have been viewed solely from the lens of economic opportunity; the GDP potential, the talent pipeline, the productivity gains available if women could only participate more fully. That framing is not wrong, but it is incomplete.

The disproportionate burden of care work on women is also a human rights issue and a women’s rights issue, and both have to be named and considered together. The issue shouldn’t be centered around how to extract more productive labour from women, but to build a system where all forms of labour – including the labour of care is valued fairly, and every woman is empowered with a genuine choice – to work, to care, or both without one coming at the cost of the other.

Gap in Sri Lanka’s fair care economy

The gendered division of unpaid labour is not incidental. It costs women their time, economic independence, and career trajectories. Unpaid care work is the infrastructure the formal economy depends on, and yet it appears nowhere in a national account or a GDP figure. A woman managing a household, raising children, and caring for an ageing parent is doing labour that keeps everything else running, even though no ledger records it.

That statistical invisibility has consequences. The less this work is counted, the less visible women’s contribution becomes, and the harder it becomes to argue that it should be shared, supported, or valued at all.

MAS Holdings offers a concrete example of how this plays out at scale across different levels of working life. As an apparel company with a large female workforce and over two decades of work on gender equity, its experience runs from the factory floor all the way up to the boardroom.

At the factory floor level, a crèche, a subsidy, or a safe transport arrangement can be the difference between a woman being able to hold a job or not. Where childcare facilities have been put in place, absenteeism dropped by around 9%, a clear indication that support at home shows up in performance at work.

Depending on where people are based or the work level or job role they perform, the barrier can look different, though it comes from the same root. A daily creche facility may not be what some parents need, it might be back up care for when grandparents or a nanny is unavailable, it could be after school care for slightly older children.

It is rarely ambition or capability that holds women back. It is the weight of what’s waiting for them at home once the meetings end. Running a household takes a kind of attention that doesn’t switch off the moment someone walks into a meeting. Yet that’s often what sits behind a promotion being turned down.

Addressing the roots, built into norms

This is the more uncomfortable finding: Even when the infrastructure works, it is still not enough. Care support can be built and funded. But that does not touch the burden that is simply assumed. Daycare centres, subsidies, and flexible hours address the visible part of the problem

What they don’t reach is an expectation, rarely spoken but deeply held, that care is solely a woman’s responsibility. These internalised beliefs show up in how children are raised, in how couples divide the work of a household, and in how elderly parents are looked after in homes where three generations live under one roof.

The stigma around institutional elderly care makes this visible. Placing a parent in a care facility is still widely read as a failure of duty, and it is women, more often than men, who carry that judgement. Nor is the reluctance irrational: for most families, the alternatives are neither regulated nor affordable. But where there is no real option, the default is not a decision. It is an assignment, and it is made on the basis of gender.

A childcare subsidy cannot undo an expectation rooted in social shame. Infrastructure eases the immediate pressure; lasting change requires the underlying norm to shift. That is slower work, and harder to measure, but it is where progress actually happens.

What else needs to change?

The ILO’s 2024 Resolution on Decent Work and the Care Economy places this issue on the global development agenda. A well-structured care economy strengthens resilience, advances gender equality, and supports economic development. Governments, employers, and communities each have a role in building it.

Governments need policy frameworks that treat care as a sector in its own right. They need to fund accessible public infrastructure and enable flexible work in practice. Employers also need a range of responses because care needs differ across a workforce.

Backup childcare may work for one employee, crèche access for another, and an allowance or flexible scheduling for someone else. Extending care benefits and flexible arrangements to men is essential because shared access can begin to change expectations inside organisations and at home

Families and communities also shape how care is understood and distributed. The first step is to name what is already happening at home: unpaid care is work, and the way it is divided can be changed. Recognising that gives women greater space to describe what they carry and to influence the solutions developed within households, workplaces, and national policy.

An effective care ecosystem will take shape when the expectations formed at home, the support available at work, and the infrastructure created through public policy begin to reinforce one another.

Families influence who is expected to care. Employers experience the consequences through workforce participation, attendance, retention, and progression. Governments determine whether dependable care remains available only to those who can afford it or becomes part of the infrastructure on which a functioning society depends. When these systems fail to connect, women are left to absorb the gaps between them.

Designing a fairer system also requires listening to the different realities women carry. A factory employee who depends on safe transport, a manager caring for an ageing parent, and a mother returning to work after childbirth face different pressures and require different forms of support. Surfacing those needs is itself foundational to building a care system that works.

Giving care an economic value is an important step, but fairness must ultimately be measured by whether women have a voice in how care is shared and supported, whether responsibility is distributed more evenly, and whether the choice to work, care, or do both is genuinely theirs.

That is the care economy Sri Lanka should work towards: one that recognises care as essential work, strengthens families and businesses, and allows women to protect their independence and future while caring for the people who depend on them

The Australian Government today handed over two rescue inflatable boats to the Disaster Management Centre (DMC), with disaster assessment drones for the National Building Research Institute (NBRI) to follow, as part of Australia’s ongoing support for Sri Lanka’s disaster risk management eff orts.

Funded by the Australian Government and procured by UNOPS, the equipment will support national disaster preparedness and emergency response efforts as part of Australia’s AUD 7 million humanitarian and recovery package.

The two rescue inflatable boats will enhance the Disaster Management Centre’s operational capability to reach communities isolated by floods and other water-related emergencies. They will support emergency evacuations, medical transport, the delivery of relief supplies and rapid access to affected areas during emergencies and recovery eff orts.

The disaster assessment drones will provide the National Building Research Institute with rapid aerial assessment and monitoring capacity in disaster-affected areas. The drones will support damage assessments of roads, bridges, embankments and settlements, improve situational awareness, enhance responder safety and provide information to support evidence-based decision-making during disaster response and recovery.

Hosted by the Disaster Management Centre in Colombo, the ceremony was attended by Australia’s Special Envoy for Indian Ocean Affairs Tim Watts MP, at the Australian High Commission Chargé d’Affaires Ruth Baird, Disaster Management Centre Director General Major General Sampath Kotuwegoda, National Building Research Institute Acting Director General Dr. H. A. G. Jayathissa, UNOPS South Asia Multi-Country Office Head of Support Services Maki Rankoe, and representatives from the Australian High Commission, UNOPS, the Disaster Management Centre and the National Building Research Institute.

Australia’s Special Envoy for Indian Ocean Affairs Tim Watts MP said: ‘Australia is committed to locally-led disaster preparedness and regional resilience in the Indian Ocean. The Australian-funded rescue boats and disaster assessment drones will help strengthen Sri Lanka’s disaster preparedness and emergency response capability.’

The Cabinet of Ministers at its meeting on Monday approved the commencement of the procurement process to award contracts worth around Rs. 15 billion for the first phase of the Ruwanpura Expressway Project, with the contracts expected to be awarded during 2026 using approved local budgetary allocations.

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa announced the decision at the weekly post-Cabinet media briefing yesterday, stating that the approval enables the Road Development Authority (RDA) to proceed with selecting a contractor for the project’s first section.

The initial phase covers the construction of the expressway from Kahathuduwa to Ingiriya, including a System Interchange at Kahathuduwa that will connect the new expressway to the existing Southern Expressway.

‘The RDA has planned to complete the procurement process for the construction of the Phase I road section of the Ruwanpura Expressway Project from Kahathuduwa to Ingiriya, including the System Interchange to be constructed at Kahathuduwa, and award the relevant contracts within the year 2026,’ he said.

He added that the Cabinet had approved the proposal to carry out the procurement process and select a suitable contractor at an estimated cost of about Rs. 15 billion from local funds already allocated under the approved 2026 Budget provisions.

The approval marks the start of the procurement stage for the long-planned expressway project, which is intended to strengthen transport connectivity between the Western and Sabaragamuwa provinces.

Once completed, the Kahathuduwa System Interchange will provide direct connectivity between the Ruwanpura Expressway and the Southern Expressway, improving access to the national expressway network.

The proposal to this effect was submitted by Transport, Highways, and Urban Development Minister Bimal Rathnayake.

Bally’s Colombo has announced the appointment of Rahul Attanayake as its Chief Operating Officer (COO), marking a significant milestone in the organisation’s continued focus on operational excellence, strategic leadership and sustainable growth. Prior to his appointment as COO, Attanayake served as the Chief Human Resources Officer of Bally’s Colombo, where he played a key role in strengthening the organisation’s people strategy and internal governance framework. During his tenure, he contributed to the modernisation of HR systems, enhancement of employee engagement, improvement of organisational policies and the implementation of several company-wide strategic initiatives.

In his new role, Rahul Attanayake will oversee the operational functions of Bally’s Colombo across multiple business units. His responsibilities will include driving operational performance, service excellence, organisational effectiveness and long-term business strategy. He will also continue to provide executive leadership in the areas of human capital management, leadership development and organisational transformation. Attanayake brings with him an extensive academic and professional background. He is currently reading for a PhD in Human Resources and holds an MBA with specialisation in Human Resources, an MSc in Strategic Marketing and a BA (Hons) in Business. He is also qualified through the Chartered Institute of Marketing, UK and holds several professional certifications. Recognised for his strategic thinking, people-first leadership approach and operational expertise, Attanayake has led initiatives across organisational development, leadership transformation, performance management, policy development, employee capability building and operational improvement. His leadership has contributed significantly to strengthening the internal culture of Bally’s Colombo while supporting the organisation’s broader vision for growth. His appointment comes at an important time for Bally’s Colombo, following the organisation’s historic achievement of being named Best Gaming Property of the Year at the 2025 Asia Gaming Awards held in Manila. The recognition placed both Bally’s Colombo and Sri Lanka in the regional spotlight within Asia’s gaming and hospitality industry. As Bally’s Colombo continues to strengthen its operational excellence and regional presence, the appointment of Rahul Attanayake as Chief Operating Officer reflects the organisation’s confidence in experienced leadership capable of driving innovation, efficiency and exceptional guest experiences. His new role is expected to further support Bally’s Colombo’s vision of becoming one of Asia’s leading integrated gaming and hospitality destination.