Regulatory & Policy News
View all(114)📊 Sri Lanka Welfare Board Updates Aswesuma Registry, Removes Over 331K Ineligible Beneficiaries
Sri Lanka’s Welfare Benefits Board (WBB) has published its updated Aswesuma welfare list following a comprehensive re-certification process to ensure targeted financial support for vulnerable populations. Key Reforms & Beneficiary Breakdown: • Registry Cleanup: Removed 331,653 unqualified recipients from the registry while adding 153,511 newly eligible individuals. • Approved Beneficiaries: 991,800 individuals qualified for cash transfers under primary support groups: • Poor Category: 628,658 individuals • Extremely Poor Category: 363,142 individuals • Rejections: 1,391,830 applicants were deemed unqualified out of 2,383,630 reviewed cases (from 3.12M+ total self-declarations). • Phased Exclusions: Cash transfers for Transitional beneficiaries ended in April 2025, while the Vulnerable category was phased out in June 2026. Next Steps & Timeline: • Appeals & Objections: Updated lists will be displayed at Grama Niladhari and Divisional Secretariat offices with a strict 10-day window for public appeals. • Disbursements: Payments under the revised list are set to begin on November 27, 2026, with a second updated list expected soon.
⚠️ CBSL Issues Notice on Prohibited Pyramid Schemes: Max App Media Ltd Added
• Regulatory Enforcement: The Central Bank of Sri Lanka (CBSL), through its Financial Consumer Relations Department, has officially identified and declared Max App Media Ltd. and its affiliated entities (Max LK (Pvt) Ltd. and Max Media Lanka (Pvt) Ltd.) as operating prohibited pyramid schemes under Section 83 (C) of the Banking Act, No. 30 of 1988. • Updated List of Prohibited Schemes: CBSL re-issued its comprehensive list of 27 prohibited schemes/apps operating in Sri Lanka to protect the financial sector stability and investor interest. Notable entries include: • Digital & App Platforms: Max App Media Ltd., TM App, OnmaxDT, MTFE App, Sport Chain app, Ledger Block, Beecoin App, SGO/sgomine.com, and Fruugo Oline App. • Corporate Entities: Tiens Lanka Health Care, Best Life International, Global Lifestyle Lanka, Fastwin (Pvt) Ltd, Qnet/Questnet, and I.C.A.N. Advertising. • Key Context: Under Section 83 (C) of the Banking Act, participating in, promoting, or initiating prohibited financial schemes is an offence subject to legal action, aiming to safeguard public savings and clean up the broader financial services ecosystem.
Shift Tax Net to Capacity, Not Consumption: World Bank & Fiscal Data 📈
• Overall Figures & Revenue Trends • Revenue reached 15.4% of GDP (Rs. 5,049.2 Bn) in 2025, up from 12.3% in 2024 (and 7–8% in 2022). • Imbalance persists: Indirect taxes rose to 77.4% of total tax revenue in 2025, while direct taxes dropped to 22.6% (down from 33.5% in 2023). • Goods & services tax generated Rs. 3,198.1 Bn (9.8% of GDP), with VAT raising Rs. 1,746.9 Bn—far exceeding total income tax of Rs. 1,139.4 Bn (3.5% of GDP). • Key Sector & Business Impacts • In the World Bank Sri Lanka Enterprise Survey 2025, 19.3% of surveyed firms cited tax rates as their main obstacle, while 12.3% named tax administration (nearly 3x the South Asian average of 4.6%). • 27.5% of business owners/managers reported competing against unregistered or informal operators. • World Bank Recommendations & Road Ahead • Shift from regressive indirect taxation to progressive direct taxation ahead of Budget 2027. • Broaden tax base by linking TINs to major transactions and cross-matching existing land, vehicle, and bank records. • Ease compliance for SMEs and individuals through pre-filled forms, faster refunds, data protection, and establishing an independent Tax Ombudsman.
Sri Lanka Proposes Temasek-Style "Lanka Holdings" Model for SOEs 📈
• Overview: Experts propose creating a State-owned holding company, "Lanka Holdings," under a new State Business Enterprises Management Act to professionally manage Sri Lanka's State-Owned Enterprises (SOEs) based on Singapore’s Temasek model. • Core Objective: Separate the government's role as a policymaker from its role as a commercial shareholder to minimize political interference, enhance efficiency, and reduce fiscal burdens on taxpayers. • Proposed 3-Tier SOE Structure: • Tier 1 (Commercial Enterprises): Covers commercially oriented entities like telecommunications, airlines, hotels, and plantations to drive profitability, performance, and long-term value. • Tier 2 (Strategic Utilities): Manages essential services like electricity, petroleum, railways, and ports with a dual mandate of financial sustainability and transparently budgeted public-service obligations. • Tier 3 (Non-Core Entities): Merges, restructures, or winds up persistently unviable or overlapping entities following evidence-based reviews. • Key Highlights & Governance: • Independent, competency-based board appointments with zero ministerial seatings on subsidiary boards. • Enforces financial discipline via transparent dividend policies, published audited consolidated accounts, and public listing options on the CSE for select SOEs. • Strict safeguards to protect public assets, workers' rights, and retirement funds (EPF/ETF). • Implementation: Proposed phased 5-year roadmap starting with establishing legal foundations and transferring an initial batch of 10–15 commercial SOEs.
🚨 Critical Cyber Vulnerabilities Threaten Sri Lanka's Public Digital Infrastructure
An investigation into ~640 live government (.gov.lk) websites reveals severe, unpatched security vulnerabilities across critical national infrastructure, risking national security, public trust, and data privacy. Key Findings & Security Risks: • Widespread Software Flaws: At least 80 state, utility, and state-owned corporate websites run vulnerable versions of PHP (including exposure to the severe PHP2Shell flaw). • Outdated Systems: 61 sites run unsupported PHP versions phased out years ago. Examples include CEB and Disaster Management Centre (PHP released June 2013), and Ministry of Health HR systems (PHP released July 2010). • Sensitive Data Exposure: Vulnerable architectures impact high-risk systems holding NIC numbers, doctor logins, and corruption complaints (e.g., Bribery Commission, Department for Registration of Persons, Sri Lanka Police). • Server Misconfigurations: 9 state sites publicly display full server configurations, while database administration login pages remain publicly accessible (e.g., Ministry of Defence, LECO, Disaster Management Centre). Institutional & Structural Failures: • Use of Personal Email: Widespread reliance on commercial Gmail addresses by government entities for official services, including confidential Census and Statistics surveys and Right-to-Information requests. • Lack of Central Governance: SL-CERT can issue advisories but lacks legal mandate or authority to compel state bodies to secure or update systems. • Recent Incidents: Includes the October 2025 Lanka Government Cloud disruption (caused by a full disk without centralized backup) and a 2023 ransomware attack that permanently deleted emails across ~5,000 official accounts due to missing offline backups. National Impact: • Unpatched systems threaten national security and increase exposure to data theft, ransomware, and disinformation campaigns via hijacked state portals prior to the Personal Data Protection Act becoming fully operational on 1 January 2027.
🐘 WNPS Files Legal Action Against Firearm Issuance to Civilians Amid Surge in Elephant Killings
• Legal Action & Conservation Risk: Sri Lanka's Wildlife and Nature Protection Society (WNPS) initiated a Court of Appeal writ application challenging state-issued firearms to civilians. The application targets the DWC, Ministry of Defence, and Ministry of Environment to halt escalating wildlife fatalities. • Firearm Distribution Figures: • 13,207 firearms issued to farmers under crop protection schemes (stated in Parliament on March 18, 2025). • A large volume of distributed weapons remains unlicensed and unaccounted for. • 21 wild elephants shot in 7 months (Jan–Jul 2025); shootings drive ~20% of annual elephant fatalities. • Socio-Economic & Eco-Tourism Impact: • The loss of iconic tuskers like 'Bathiya' and 'Kavantissa' threatens wildlife heritage critical to eco-tourism. • Threatens enforcement under the Fauna and Flora Protection Ordinance (FFPO), converting human-wildlife conflict into a public safety hazard. • Past Precedents: In 2020, WNPS successfully challenged 6,000 firearm issuances to Civil Defence Forces, yielding a court undertaking to recall weapons—a commitment authorities recycled rather than resolved. [Crisis: Wild Elephants in Sri Lanka Invade Communities for Food](https://www.youtube.com/shorts/VyZZiOondeQ) This video is relevant because it highlights the intensifying human-elephant conflict and habitat loss driving wild elephants into local communities, directly reflecting the crop protection issues discussed in the legal summary.
⚖️ SC Sets Deadline for Rs. 275 M Payment in Medical Procurement Case
Following a contempt application by Transparency International Sri Lanka (TISL), the Supreme Court has issued strict deadlines, travel bans, and bail conditions for respondents who failed to pay Rs. 275 million in compensation ordered over fundamental rights violations in medical procurement. • Key Case Details: - Case SC/FR/65/2023 linked to sub-standard medical supplies procurement. - Judgment delivered on 27 March 2026 found 5 former officials guilty under Article 12(1). - TISL filed contempt proceedings after payments remained unpaid for 7 months. • Compensation & Payment Status: - Total Court-Ordered Penalty: Rs. 275 million to the State. - Former NMRA Chairman Prof. S. D. Jayaratne: Paid full Rs. 50M on 22 Oct 2026. - Former Health Minister Keheliya Rambukwella: Paid Rs. 20M; pledged remaining Rs. 55M within 2 weeks (Total: Rs. 75M). - Former Health Secretary S. J. S. Chandraguptha: Pledged Rs. 5M in 1 week, remaining Rs. 45M within 3 months (Total: Rs. 50M). - Former NMRA CEO Dr. Vijith Gunasekara: Pledged Rs. 20M in 2 weeks, remaining Rs. 30M within 3 months (Total: Rs. 50M). - Former MSD Director Dr. A. Thusitha Sudharshana: Pledged ~Rs. 2M savings this week, remaining Rs. 48M within 3 months (Total: Rs. 50M). • Court Enforcement & Directives: - Final deadline of 3 months granted to settle remaining balances in full. - Travel bans imposed on Rambukwella, Chandraguptha, Gunasekara, and Sudharshana. - All 4 ordered to fulfill bail conditions within 1 week (Rs. 50M cash bond + 2 sureties each). - Case fixed to be taken up next on 15 February 2027.
🚨 BASL Demands Impartial Probe Into Homagama Custodial Death
The Bar Association of Sri Lanka (BASL) has voiced grave concerns over the death of 29-year-old Ishara Harshakumara while in Homagama Police custody, calling for an immediate, transparent, and independent investigation. • Incident Details: The deceased, a resident of Kiriwaththuduwa, was arrested in connection with a drug-related investigation. • Conflicting Accounts: - Family Statement: Relatives reported observing severe physical injuries on the suspect during a police station visit on 25 October 2026, alleging assault. - Police Statement: Police authorities stated the suspect fell suddenly ill during an operation and passed away after being admitted to the hospital. • Legal & Regulatory Response: - State Responsibility: The BASL emphasized that the State holds a duty of care for suspects in custody and demanded full accountability if custodial violence is proven. - Ongoing Inquiries: The Homagama Magistrate’s Court has ordered a post-mortem examination, while a preliminary inquiry is underway led by the Homagama Assistant Superintendent of Police (ASP). - Call to Action: The BASL urged the Inspector General of Police (IGP) to ensure evidence preservation without interference, stating it will monitor developments for further action.
📈 APG Launches Sri Lanka's 3rd AML/CFT Mutual Evaluation
• Evaluation Scope: The Asia/Pacific Group on Money Laundering (APG) inaugurated Sri Lanka’s 3rd Mutual Evaluation to assess effective safeguards against money laundering, terrorism financing, and proliferation financing. • Key Priorities: Prime Minister Dr. Harini Amarasuriya emphasized that financial system strength relies on operational effectiveness rather than just laws. She identified corruption and public trust erosion in🏛️ APG Initiates Sri Lanka's 3rd AML/CFT Mutual Evaluation The Asia/Pacific Group on Money Laundering (APG) has officially launched Sri Lanka’s Third Mutual Evaluation on Anti-Money Laundering, Countering the Financing of Terrorism, and Countering Proliferation Financing (AML/CFT/CPF). • Key Focus & Assessment: The peer review evaluates the practical effectiveness of Sri Lanka's financial safeguards against financial crime and alignment with international standards, moving beyond mere regulatory existence. • Economic & Governance Impact: Prime Minister Dr. Harini Amarasuriya highlighted that corruption and eroding trust in State financial institutions pose major threats to economic and political stability. Strengthening transparency, accountability, and enforcement is vital to safeguarding national financial integrity and supporting overall economic resilience. • International Standing: The Government pledged full engagement with APG assessors to maintain the confidence of international business partners, global financial networks, and foreign investors. • Stakeholder Representation: The inaugural session was attended by PM Dr. Harini Amarasuriya, Digital Economy Deputy Minister Eranga Weeraratne, Central Bank Governor Dr. Nandalal Weerasinghe, the Ministry of Justice Secretary, and members of the Financial Intelligence Unit.
🇱🇰 Cabinet Approves Amendment Regulations for Tea Broker Licensing
• Overview: The Cabinet of Ministers has approved submitting new amendment regulations to Parliament regarding the granting of licenses to brokers in the Sri Lankan tea industry. • Legislative Details: The amendments update the original Regulations for the Grant of Licences to Producers (Tea) Brokers, 1979, framed under the Producers (Legalisation) of Producers Act, No. 9 of 1979. • Process & Timeline: The proposal was submitted by Plantations and Community Infrastructure Minister Samantha Viddyarathna. The regulations follow initial Cabinet approval granted on 22 June 2026 and were published in Gazette Extraordinary No. 2501/68 on 12 August 2026, awaiting final parliamentary approval.
⚖️ AG Indicts MP Namal Rajapaksa Over Airbus Deal
• Legal Action & Charges: The Attorney General has filed an indictment containing 24 charges against Parliamentarian Namal Rajapaksa before the Colombo Permanent High Court Trial-at-Bar regarding alleged bribery connected to the Airbus transaction. • Court Directives: Deputy Solicitor General Janaka Bandara confirmed that 59 witnesses are listed in the indictment. Colombo Chief Magistrate Asanga S. Bodaragama ordered that Rajapaksa remain in custody until his presentation before the Trial-at-Bar today (28 Oct 2026). • Jurisdiction & Custody: The Magistrate noted that following the filing of the indictment at the Trial-at-Bar, the Magistrate’s Court lacks authority to issue orders on bail or remand for the suspect, with no exceptional circumstances presented for bail release.
Govt to Lease 15 State Plantation Properties to Local Investors 📈
• Key Decision: The Cabinet approved long-term leasing of 15 selected state-owned land and property plots to local investors to attract private capital and revitalize underutilized agricultural assets. • Managing Entities: Assets fall under three state agencies: Sri Lanka State Plantations Corporation (SLSPC), Janatha Estates Development Board (JEDB), and Elkaduwa Plantations Company. • Asset Breakdown: The initial call for Expressions of Interest (EOIs) covered: • 1,514 hectares of plantation land. • 10 tourism bungalows and scenic spots. • 15 inactive processing factories. • Investor Interest: Received 470 EOIs, leading to 44 detailed proposals covering 50 land and property lots before final selection. • Strategic Impact: Aims to improve productive land use across traditional tea, rubber, and coconut sectors, driving revival in regional agriculture and tourism infrastructure. • Data Limitations: Specific lease durations and total expected investment revenue remain undisclosed based on available details.