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The Inland Revenue Department (IRD) has announced a major overhaul of Sri Lanka’s VAT refund system, replacing the Simplified Value Added Tax (SVAT) scheme with a risk-based refund mechanism effective today.

The IRD stated that the new mechanism aims to facilitate faster and more efficient VAT refunds for eligible exporters and projects while reducing opportunities for fraud and errors.

Under the new system, refunds will generally be issued within 45 days of submitting a proper VAT return, depending on the taxpayer’s risk rating. Eligible VAT registrants will be assessed using a statistically robust risk-based methodology and classified into three categories: low, medium, and high risk. Low and medium risk taxpayers can expect refunds without prior verification, while high risk taxpayers will undergo pre-verification before refunds are processed.

According to the IRD, eligible recipients include exporters with direct exports exceeding 50% of their total supply in the preceding year, approved projects under Section 22(7) of the VAT Act, and suppliers to designated Special Projects (SP) and Strategic Development Projects (SDP), where such supplies constitute over 50% of their total supply.

The IRD noted that any non-compliance or errors detected in submitted schedules will pause the 45-day refund timeline until rectification, ensuring accountability in the process.

The SVAT scheme, introduced in 2011, has been a cornerstone of the country’s taxation framework, particularly supporting exporters and strategic projects. However, the move to replace SVAT comes amid growing concerns over VAT compliance and past instances of large-scale fraud.

Notably, Sri Lanka experienced the largest VAT fraud in South Asia in the early 2000s, resulting in a loss of around Rs. 357 million due to unlawful refunds to non-existent companies.

The Government and IRD face a critical challenge in ensuring that the new refund mechanism is robust, transparent and resistant to corruption. With past VAT and income tax refund systems proving vulnerable, policymakers will need to balance efficiency with stringent verification to safeguard public funds.

On 26 September, leading export associations voiced deep concerns and warned of a looming cash flow crisis that could choke the country’s $ 19 billion export target for 2025. At a joint press briefing, representatives from a range of key export industries stressed that while the move is framed as aligning with International Monetary Fund (IMF)-backed reforms, the absence of a tested and functioning VAT refund mechanism threatens to withhold nearly 8% of export earnings or about $ 80 million each month from the sector (https://www.ft.lk/front-page/Exporters-fear—80-m-monthly-cash-crunch-if-SVAT-removed-and-no-refund-system/44-782189).

World number one Carlos Alcaraz beat Taylor Fritz 6-4 6-4 at the Japan Open – before pulling out of this week’s Shanghai Masters.

Alcaraz secured his eighth ATP title of the year in Tokyo.

But he then announced that he has withdrawn from the tournament in Shanghai, which starts on Tuesday, writing on Instagram that ‘the best decision is to rest and recover’.

‘Unfortunately, I’ve been struggling with some physical issues and, after discussing with my team, we believe the best decision is to rest and recover,’ he wrote.

The Spaniard twisted his left ankle during his opening-round match in Tokyo last Thursday.

But he showed no signs of an issue during the final, broke for 5-4 and served out for the first set against Fritz.

Fritz twice required treatment to his left thigh before returning for the second and Alcaraz seized the opportunity to pile on the pressure.

The American was broken twice and trailed 4-1 but did offer some resistance in the closing stages, chalking one of those off, but didn’t have enough to stop the six-time Grand Slam champion.

Since losing against Jannik Sinner at Wimbledon in July, Alcaraz has won three successive ATP titles – the Cincinnati Open, US Open and Tokyo Open.

But he will not take part in the tournament in Shanghai, where he reached the quarter-finals last year.

The Japan Open is Alcaraz’s 67th win of the season as he closes in further on Sinner’s tally of 73 wins in 2024.

Police yesterday disclosed that an underworld figure killed in Middeniya earlier this year had been inside a vehicle that pursued rugby player Wasim Thajudeen shortly before his death in 2012.

Acting Police Media Spokesperson Nihal Thalduwa said the man, identified as Anura Vidanagamage, known as ‘Middeniya Kajja’, was recognised by his widow in relation to the case.

Investigators believe Vidanagamage was among those who followed Thajudeen’s car on the night of his death. Thajudeen, a former national rugby player, was found dead in his vehicle in May 2012. Although initially reported as a car accident, the case was later reclassified as a homicide.

Vidanagamage, alleged to have ties to organised crime, was shot dead in Middeniya earlier this year. Police said his role in the Thajudeen case has now resurfaced during ongoing probes into underworld activity and unresolved high-profile killings.

Further investigations are underway.

CEAT Kelani Holdings has been recognised as Sri Lanka’s Employer Brand of the Year 2025, while its Vice President – Human Resources Thushara Hettithantrige was honoured as a ‘Topmost HR Leader of Sri Lanka’ at the 2025 World HRD Congress Sri Lanka awards presentation held in Colombo recently.

The evaluation process for the Sri Lanka awards was based on criteria that encompassed brand strategy, employee value proposition, recruitment and retention, diversity and inclusion, employer reputation, innovation, creativity and outcomes.

The World HRD Congress is a global platform for human resource professionals founded by Dr. R.L. Bhatia, with a dynamic presence across Asia, Africa and the GCC. It is governed and run by professionals and HR leaders across multiple countries with the objective of bringing them together on a single platform.

These latest accolades affirm CEAT Kelani’s commitment to aligning its business and HR strategies to nurture a truly happy workforce and sustain a culture built on shared values. With a strength of more than 1,000 employees – including over 150 who have dedicated two decades of service – the Company has consistently set benchmarks in employee engagement, retention and overall workplace wellbeing.

Transparent performance management systems, talent development initiatives, succession planning, career management programmes, and a healthy partnership with its Trade Union are integral to CEAT’s employee value proposition, the company said.

CEAT Kelani Chief Executive Officer and Managing Director Ravi Dadlani, ‘We also prioritise work-life balance and employee welfare through activities that extend to families, and implement HR policies that emphasise internal recruitment, job enrichment, job rotation, and career planning and provide special loan schemes for professional qualifications. Additionally, our robust recognition and rewards policy celebrates employees who deliver exceptional value through innovation.’

These elements have helped CEAT Kelani distinguish itself as an employer of choice in Sri Lanka and have earned the company a reputation for building a resilient and motivated workforce dedicated to driving innovation and growth.

Amuna Ayurveda and Wellness Retreat has been honoured with the title of ‘Sri Lanka’s Best Wellness Retreat 2025’ at the World Spa Awards.

This distinguished accolade places Amuna among the most revered wellness sanctuaries in the world, underscoring its unwavering commitment to authentic Ayurveda, transformational guest experiences, and exceptional standards in holistic healing.

Nestled in the heart of Sri Lanka’s Cultural Triangle, near the tranquil Kandalama Lake in Sigiriya, Amuna is an oasis of serenity where nature, culture, and ancient healing traditions converge. Designed with sustainability and mindfulness at its core, the retreat offers a deeply immersive experience with traditional Ayurveda treatment rooms, Shirodhara therapy spaces, herbal baths, and steam rooms-all guided by experienced Ayurvedic doctors and therapists. Each guest receives a personalised program with treatments for detoxification, rejuvenation, stress and insomnia management, immune support, yoga, meditation, and nutrition – prepared using locally sourced ingredients.

Guests from across the globe consistently praise Amuna’s authenticity, genuine care, and peaceful ambiance, describing it as more than just a wellness retreat-a soulful journey of renewal and self-discovery. This international recognition from the World Spa Awards validates Amuna’s position as a trailblazer in Sri Lanka’s wellness tourism sector, and as a destination that seamlessly fuses ancient wisdom with modern comfort.

Hayleys Leisure Managing Director Rohan Karr said, ‘This award is not just a win for Amuna, but for Sri Lanka as a whole. It reflects our belief in Ayurveda’s power to heal, to transform, and to connect people to something deeper-and it motivates us to continue nurturing sustainable, purpose-driven travel.’

President Anura Kumara Disanayake, during his official visit to Japan at the invitation of the Japanese Government, held discussions yesterday with Japan International Cooperation Agency (JICA) President Dr. Tanaka Akihiko at the Imperial Hotel in Tokyo, marking a fresh chapter in bilateral cooperation.

President Dissanayake expressed gratitude for Japan’s steadfast support, particularly through the resumption of concessional yen loans via JICA, which he noted was playing a vital role in Sri Lanka’s national development drive.

JICA President Dr. Akihiko reaffirmed Japan’s long-term commitment to Sri Lanka and announced that the long-delayed Bandaranaike International Airport (BIA) expansion project in Katunayake will soon resume, alongside continuous monitoring of Sri Lanka’s macroeconomic reforms.

He also stressed the importance of strengthening the private sector, industry and agriculture as engines of sustainable economic growth.

The two sides also reviewed progress on the Waste Management Plan in the Western Province, while Sri Lankan representatives sought Japanese assistance in advancing the country’s digital economy, particularly in research on artificial intelligence and the establishment of an AI Neutral Centre.

The meeting was capped by the signing of a Grant Agreement for the Project for the Enhancement of Productivity in the Dairy Sector, underscoring Japan’s continued investment in Sri Lanka’s long-term development.

Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath and a group of other officials participated in this event.

HNB Managing Director and Chief Executive Officer Damith Pallewatte has been appointed to the Governing Board of the Institute of Bankers of Sri Lanka (IBSL), the country’s apex body for banking education and professional development.

Founded in 1964 and incorporated by an Act of Parliament in 1979, IBSL has been at the heart of advancing banking knowledge, certification, and professional standards for over six decades. Its Governing Board includes representatives from the Central Bank of Sri Lanka, state commercial banks, and licensed financial institutions, reflecting its pivotal role in shaping the future of the industry.

HNB Managing Director and CEO Damith Pallewatte said: ‘I am honoured to serve on the Governing Board of the Institute of Bankers of Sri Lanka. For more than six decades, the Institute has been central to building the skills and integrity of our profession. At a time when banking is being reshaped by digitalisation, sustainability, and new customer expectations, the role of professional education has never been more critical. I look forward to working with my colleagues at IBSL. With my experience spanning risk management, corporate and wholesale banking, credit, and operations to expand learning opportunities and ensure that Sri Lankan bankers are equipped to thrive in the years ahead.’

Appointed as HNB’s Managing Director/CEO in November 2024 after serving as Acting CEO earlier that year, he has been instrumental in strengthening HNB’s wholesale banking franchise, having previously served as Deputy General Manager of the Wholesale Banking Group. Before joining HNB in 2015, he was Chief Risk Officer at Nations Trust Bank, where he led the development of robust risk frameworks during a period of global financial turbulence.

An accomplished professional, Pallewatte holds an MBA from the Postgraduate Institute of Management, University of Sri Jayewardenepura, and a BSc. Management (Hons.) from the London School of Economics (University of London). He is a Fellow of the Chartered Institute of Management Accountants (UK), a Chartered Global Management Accountant, and a Certified Financial Risk Manager (FRM) from GARP.

Deepti Sharma spun her magic with the ball to notch a three-wicket haul as India beat Sri Lanka by 59 runs in DLS method in their ICC Women’s Cricket World Cup 2025 opener.

Having played a vital role with the bat earlier in the game, Sharma managed to get rid of Sri Lanka Captain Chamari Athapaththu, Kaveesha Dilhari and Anushka Sanjeewani.

Removing Sri Lanka’s star opener for 43 during their pursuit of 270, Deepti’s display allowed India to tighten their grip on the contest, paving way for other bowlers to benefit, with Sree Charani and Amanjot Kaur nabbing a wicket each in quick succession.

Meanwhile, Kranti Gaud had opened the floodgates for India with their first wicket in the tournament by cleaning up Hasini Perera.

Making her tournament debut, Gaud deceived the Sri Lanka opener with a delivery that kept low and crashed into the off stump.

Earlier, Amanjot Kaur and Deepti Sharma helped India pull their way back into the contest at the ACA Stadium in Guwahati.

After the Harmanpreet Kaur-led side was pinned down to 124/6, thanks to Sri Lanka’s prolific effort with the ball, the duo combined 103 runs for the seventh-wicket partnership.

Sneh Rana also constructed a vital cameo – 28 off 15 deliveries – producing two fours and as many maximums to help India past the 250-run mark.

For Sri Lanka, Inoka Ranaweera had turned the game in Sri Lanka’s favour by removing Harleen Doel, Jemimah Rodrigues and Harmanpreet Kaur in quick succession to leave India reeling at 121/5.

The Sri Lankan tweaker became the second oldest player to take a four-wicket haul in Women’s ODIs, and the oldest to do so at the Women’s Cricket World Cup.

Sri Lanka skipper Chamari Athapaththu then added to India’s troubles in the by dismissing Richa Ghosh with Udeshika Prabodani taking a sharp catch at cover.

The surge of wickets came after the contest was reduced to 48 overs a side after persistent drizzle kept players off the field for over an hour.

Shortly after resumption, Pratika Rawal’s steady knock of 37 from 59 balls came to an end as she stepped out to Inoka Ranaweera but got picked out deep midwicket. Vishmi Gunaratne held on to the catch at the second attempt, breaking India’s 50-run partnership.

Sri Lanka Captain Chamari Athapaththu had won the toss and elected to field first in their tournament opener against in Guwahati.

The Sri Lanka Export Development Board (EDB), in collaboration with the Industry and Entrepreneurship Development Ministry recently hosted a dynamic workshop at EDB Head Office to boost the international visibility of Sri Lanka’s creative textile sector.

The program aimed to enhance awareness among government institutions operating under the Industry and Entrepreneurship Development about domestic and international market opportunities and to facilitate easier market access for creative textile products mainly handloom and batik industries.

Sharing their expertise, Buddhi Batiks Ltd., Chief Executive Officer Darshi Kirthisena shared her insights on ‘Presenting Batik Products to the Modern Fashion Market’, demonstrating how traditional batik art can be adapted for global consumers.

University of Kelaniya Department of Marketing Management Senior Lecturer Dr. G. Nilantha Roshan Perera conducted a session on ‘Developing a Global Textile Brand’ where he shared valuable insights on branding strategies, market positioning, and the importance of storytelling in building internationally competitive textile brands.

Adding a practical dimension, Loom and Bean (ApiHappi) Co-Founders Itosha Lankathilaka and Aparna Samarakoon shared their inspiring export success story showcasing how traditional Sri Lankan products can capture international markets.

Meanwhile, Dr. Thushari Vanniarachchi from the University of Moratuwa emphasised stronger collaboration between fashion design institutions and government textile centres, while Sri Lanka Institute of Textile and Apparel (SLITA) Senior Technologist Sarath Wijayabahu outlined SLITA’s critical role in skills training, product innovation, and certification.

The event drew the participation of senior officials including Industry and Entrepreneurship Development Ministry Additional Secretary – Traditional Industry Development Subhadra Walpola, Sri Lanka Institute of Textile and Apparel (SLITA) Director General Tharanga Nalan Gamlath, EDB Acting Additional Director General – Development Kumuduni Mudalige and Director – Industrial Products Manoja Dissanayake, alongside provincial industry directors, textile centre managers, and EDB officers.

This initiative marks an important step in linking Sri Lanka’s rich cultural heritage with global fashion trends, paving the way for enhanced exports, sustainable livelihoods, and a stronger international presence for the island’s creative textile sectors including the handloom and batik industry.

The farcical comedy that took place during the awards ceremony at the conclusion of the 17th Asia Cup tournament in Dubai on Sunday where India refused to accept the winner’s trophy from Asian Cricket Council (ACC) President Mohsin Naqvi who is also Chairman of the Pakistan Cricket Board and the Interior Minister of Pakistan, just goes to show how much times have changed over the years where politics creeping into sports is ruining everything that sports stands for.

Going back to February 1996, the year Sri Lanka won the cricket World Cup, India and Pakistan players showed solidarity by coming together to play for the Wills Combined XI which was an India-Pakistan Combined side against Sri Lanka to prove to the world that Sri Lanka was a safe place to play cricket after Australia and West Indies had declined to tour citing security concerns.

Australia’s opening match of the 1996 World Cup was set to be played at the R. Premadasa Cricket Stadium in Colombo which had witnessed a bomb explosion the previous month, and West Indies were due to face the host country a week later.

Sri Lanka who was joint hosts with India and Pakistan faced an uncertain future of hosting the World Cup matches due to the decisions taken by Australia and West Indies.

It was then that Pakistan and India came together in solidarity combining to form a dream team called the Wills India and Pakistan Combined XI with top stars from both teams ready to feature in a 40-over warm-up match against Sri Lanka at the R. Premadasa Stadium and clear any doubts over players’ safety. It was played for the Wills Solidarity Cup.

The match took place a day before the start of the World Cup that saw the Wills Combined India-Pakistan XI led by Mohammed Azharuddin take on Arjuna Ranatunga’s Sri Lankan side.

The Wills Asian XI had some dream combinations with Sachin Tendulkar and Saeed Anwar opening the batting and Wasim Akram and Waqar Younis bowling in tandem with Anil Kumble. Aamir Sohail, Ijaz Ahmed, Ajay Jadeja, Rashid Latif and Aashish Kapoor completed their eleven.

Batting first, Sri Lanka managed 168-9 in 40 overs, with Asanka Gurusinha and Ranatunga scoring 34 and 32 respectively and leg-spinner Anil Kumble ending with figures of 8-1-12-4 which eventually won him the Player of the Match award. Waqar and Wasim picked up Sanath Jayasuriya and Romesh Kaluwitharana cheaply. The opening pair was to become the cornerstone of Sri Lanka’s World Cup win a few weeks later.

Sri Lanka spinners, Muttiah Muralitharan and Upul Chandana, picked up a couple of wickets each, but the Combined Wills XI cruised home by four wickets following notable contributions from each of their batsmen, notably Tendulkar 36 and Azharuddin 32.

Despite the show of strength, Australia and West Indies refused to change their stance. Sri Lanka won a walkover in their matches against both teams. Interestingly, both Australia and West Indies faced each other in one semi-final in Chandigarh, where Australia emerged victorious. The other semi-final played at Kolkata saw Sri Lanka being awarded the match against India by default after spectator riots.

Sri Lanka went onto eventually win their maiden World Cup defeating Australia in the final at Lahore.

Intikhab Alam, manager of the Wills Combined XI said: ‘This is the first time that India and Pakistan are playing as one team in its history. I sincerely hope with this match India and Pakistan will resume cricket ties. I hope it is the turning point. It was a tremendous sight to have both Indian and Pakistan cricketers get together at the airport. I don’t think you can achieve any better goals than that. We are happy to be here and it is the least we can do for our countries.’

Such was the solidarity that existed between India and Pakistan which over the years has sadly eroded due to politics.

Scores: Sri Lanka 168-9 (40) (Asanka Gurusinha 34, Arjuna Ranatunga 32, Aashish Kapoor 2/34, Anil Kumble 4/12)

Wills Combined XI 171-6 (34.3) (Sachin Tendulkar 36, Mohammed Azharuddin 32, Ajay Jadeja 28, Rashid Latif 21*, M Muralitharan 2/46, Upul Chandana 2/35)