The World Bank is advocating for Sri Lanka to press on with its reforms of state-owned enterprises (SOEs), arguing that even profitable ones can benefit from privatization. Richard Miller, a Senior Economist at the World Bank, recently spoke in Colombo and emphasized that privatization can unlock significant advantages. A common argument against selling profitable SOEs,
Sri Lanka is facing a pressing challenge: how to tax the burgeoning digital economy. Tax professionals are urging policymakers to implement fair and effective mechanisms to capture revenue from this growing sector. The issue of digital taxation has been simmering for years, but it’s now gaining renewed focus. Discussions about extending the tax net to
Sri Lanka has announced the extension of its free visa on arrival program, initially offered as a pilot project to seven countries: India, China, Russia, Malaysia, Japan, Indonesia, and Thailand. This program, initially set to expire at the end of March 2024, has been extended until April 30th. Tourism Minister Harin Fernando confirmed the extension
The Sri Lankan tourism industry is embroiled in a heated debate regarding the recently implemented Minimum Room Rates (MRR). While the Sri Lanka Tourism Development Authority (SLDA) views MRR as a positive step, tourism associations are strongly opposed, claiming it stifles growth and hinders the industry’s recovery. Proponents of MRR, including a group of city
Small and Medium-sized Enterprises (SMEs) are the lifeblood of Sri Lanka’s economy, accounting for over 75% of businesses and contributing more than half of the country’s GDP. Recognizing the challenges SMEs face in accessing financing, the government has implemented a two-pronged approach with the support of the Asian Development Bank (ADB). One key initiative is
The Central Bank of Sri Lanka (CBSL) took a significant step to boost the economy on March 25th, 2024, by reducing key interest rates. The Monetary Policy Board lowered the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 50 basis points each, bringing them down to 8.50% and 9.50%, respectively.
In a move to strengthen tax compliance and administration, the Sri Lankan government has announced a new regulation mandating information sharing with the Commissioner General of Inland Revenue (CGIR). This initiative, outlined in Gazette number 2376/25 issued by President Ranil Wickremesinghe, will come into effect on April 1st, 2024. The new regulation casts a wider
The International Monetary Fund (IMF) has reported positive signs of economic recovery in Sri Lanka. After a period of contraction, the country’s growth turned positive in the latter half of 2023, reaching 1.6% and 4.5% in the third and fourth quarters, respectively. This improvement is attributed to a pick-up in key sectors like manufacturing, construction,
Sri Lanka’s Port of Kankesanthurai (KKS) is set for a significant upgrade with a USD 61.5 million grant from the Indian government. This news emerged during a meeting between Sri Lanka’s Minister of Ports, Shipping, and Aviation, Nimal Siripala de Silva, and the Indian High Commissioner to Sri Lanka, Santosh Jha. The project aims to
Unilever Sri Lanka and the Industrial Development Board (IDB) have joined forces to uplift Micro, Small and Medium Scale Enterprises (MSMEs) in Sri Lanka through a three-year memorandum of understanding (MoU). This collaborative effort signifies a significant public-private partnership aimed at empowering local businesses. The initiative focuses on supporting the growth and development of 20