🚨 Worrying Decay in Sri Lanka's State University System
• The alarming systematic decline of the island's State university system was recently highlighted by a physical clash between two student batches at the University of Ruhuna over a cricket match score, leading to arrests. • Beyond trivial conflicts, many universities, especially outside the Western Province, are plagued by student unrest, indefinite closures, and widespread inhumane ragging of newcomers. Exceptions include Colombo, Moratuwa, and Sri Jayewardenepura. • Despite the generous taxpayer-funded free university education legacy, the system disproportionately benefits the upper middle class. Financial aid schemes (e.g., Mahapola) are reportedly misused through understated income declarations and bribery of officials. • Pathetic public finances, with revenue consumed by salaries and interest, leave little for meaningful improvements, contributing to substandard hostel facilities and poor canteen food across the 19 State universities, which now cater to 490,000 students. • The article stresses caution regarding further expansion, urging priority be given to resolving existing deficiencies and calling for serious evaluation and introspection by the academic community to drastically improve standards.
GI Status: Powering Value for Sri Lankan Exports 📈
• Geographical Indications (GIs) are emerging as a powerful tool for Sri Lanka to enhance the value of its agricultural and artisanal heritage, ensuring sustainable rural development and market competitiveness. • Current Progress: This strategic shift is marked by the EU registration of Ceylon Cinnamon and the ongoing GI application for Ceylon Tea. The Ceylon Tea GI project, supported by AFD, recently concluded with an expert conference on the topic. • Key Benefits (SLTB & Experts): • Market Premium: GIs protect origin identity, combat imitation, and position products like Ceylon Tea at a premium in international markets. • Quality Assurance: They help define and enforce quality standards, ensuring full traceability and protection against fraud. • Collective Action: The process fosters inclusive governance and collective action; the Ceylon Tea specification development involved over 500 operators. • Territorial Development: Well-managed GIs can attract investment, boost tourism (e.g., tea tours, spice gardens), and sustain rural livelihoods. • Strategic Path Forward (IPS): Experts recommend streamlining the GI system by: • Establishing a dedicated GI division within the NIPO. • Creating a nationally recognized GI logo for consumer trust. • Forming a GI Council including NIPO, EDB, Tea Board, and producer groups for coordinated policy. • Promoting initiatives like a 'One District, One GI Product' program.
📱 Hutch & TRCSL Host Regional Telecom Regulators (SATRC)
• Hutch Sri Lanka partnered with the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) to host the high-profile ceremony for the 2nd Meeting of the South Asia Telecommunication Regulators’ Council (SATRC) Working Group on Policy, Regulation and Services on September 23, 2025. • The event drew nearly 75 delegates, including senior representatives from TRCSL, the Digital Economy Ministry, and leading telecom regulators from 10 nations across South and Southeast Asia (including India, Pakistan, Bangladesh, and the Maldives). • The gathering aimed to lay unofficial groundwork for strengthening regional regulatory cooperation, strategic networking, and exchanging ideas among regulatory bodies. • Hutch reinforced its role as a strategic telecom leader, demonstrating a commitment beyond commercial interests to contribute meaningfully to regional telecommunications governance and technological advancement. • Hutch CEO stated, "Connectivity is no longer a utility; it is an enabler of national productivity."
📈 Call for Forensic Audit on Royal College SDS Finances
An alumnus has formally requested the Auditor General to initiate a comprehensive investigative forensic audit into the Royal College School Development Society (SDS) activities for the past 10 years, citing severe irregularities in the 2024 financials. • The statutory auditor issued a "disclaimer" audit report for the RC-SDS for the year ended December 31, 2024. • The disclaimer's primary basis is the non-recognition of income from 13 material sources in the books, including major events like the Royal Thomian cricket match, Royal Trinity Bradby shield Rugger match, and RCU swimming pool. • Auditors were also unable to verify event income balances totaling over Rs. 18.06 Mn (including Rs. 15.02 Mn from Clubs/Societies) due to a lack of sufficient audit evidence. • An unauthorised write-off of Rs. 3.3 Mn is deemed minor when compared to the scale of non-accounting of main income sources. • The letter was also copied to the Education Ministry Secretary and suggests the previously missing 2023 report was "fraudulently omitted" due to likely similar adverse findings.
CIABOC Briefs Foreign Ministry Officials on Anti-Corruption & Ethical Conduct 🏛️
• The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) conducted an awareness program on "Combatting Corruption and the Relevance of Integrity and Ethical Conduct.” • The session was held for officials of the Ministry of Foreign Affairs, Foreign Employment and Tourism, including officers of the Sri Lanka Foreign Service (SLFSA) and Internal Affairs Units. • CIABOC Director General Ranga Dissanayake educated participants on the existing legal framework against bribery and corruption. • Key focus areas included the provision of maximum public service under the law and the public employees' role in building a prosperous Sri Lanka. • The program was organised on the instructions of Minister Vijitha Herath.
Customs Nabs Indian with Rs. 85 Mn Heroin at BIA 🚨
• Sri Lanka Customs’ Narcotics Control Unit arrested a 39-year-old Indian national at the Bandaranaike International Airport (BIA) on Sunday. • Seized: A total of 2.832 kg of heroin, valued at approximately Rs. 84.96 million (Rs. 85 Mn). • The suspect arrived from Kuala Lumpur, Malaysia, on SriLankan Airlines flight UL 315. • The narcotics were discovered concealed within a false bottom of the suspect’s checked-in luggage during an inspection. • The individual and the confiscated heroin will be handed over to the Police Narcotics Bureau (PNB) for legal proceedings following further investigation by Customs. • Customs officials emphasized the vigilance of their officers and the importance of continued inter-agency coordination in curbing narcotics smuggling through Sri Lanka’s ports.
📱 SL Govt. Planning Smartphone Ban for Under 12s
• The Government is planning to introduce measures that will prohibit schoolchildren below the age of 12 years from owning or using mobile phones. • The intention was announced by the Minister of Women and Child Affairs, Saroja Paulraj. • The move is aimed at protecting children from excessive screen exposure and harmful online content. • The plan also seeks to promote healthier development and social interaction among young children.
📈 E-Visa Audit Reveals $1.4 Mn Unpaid Taxes & Major Irregularities
• A special audit by the Auditor General’s Department on the e-Visa system (Apr.-Aug. '24) found that operating companies failed to remit over US$ 1.41 Million in taxes. • Unpaid Tax Liability: The total of $ 1,418,360 includes $ 1,245,390 in VAT and $ 172,970 in SSCL. • Revenue Routing: All visa-related revenue was routed to foreign bank accounts controlled by private operators, instead of official Government channels. Consequently, the AG Department could not verify the total revenue collected. • Service Fees & Earnings: • Operators (GBS Technology Services/IVS Global-FZCO) processed 373,991 applications, generating a minimum of $ 6.9 Mn in service-fee revenue, plus an additional $ 1.8 Mn from fee-waiver countries. • A uniform service fee of $ 18.50 was charged to all applicants, including those entitled to free visas. The audit questioned this increase, particularly for categories designed to attract tourist and business arrivals. • Irregularities: The firms were selected without a formal tender, violating Government procurement rules, and failed to remit the collected taxes and levies.
SL Achieves Major Data Protection Milestone 🛡️
• CICRA Campus successfully concluded Sri Lanka's inaugural Certified Data Protection Officer (DPO) Training Program, marking a significant step towards robust national compliance. • This achievement nurtures the first batch of qualified DPOs essential for implementing the Personal Data Protection Act (PDPA) requirements. • The intensive four-day program attracted a high-calibre cohort of senior professionals, including CEOs, Directors, and specialised Heads from legal, compliance, and IT/security functions. • Training provided practical expertise in key PDPA areas: conducting data audits, managing security breaches, and establishing comprehensive organisational data protection frameworks. • The program featured trainers and guest speakers who are leading industry experts, including former and current members of the PDPA Drafting Committee. • This initiative, alongside the Data Privacy & Protection Summit 2025 (3 July, 350+ attendees), strengthens Sri Lanka's overall capacity in data governance, positioning it as a key player in the region.
📈 Govt. Amends Law for FDI Boost: Tax Incentives Revived for Strategic Projects
• Cabinet approved amendments to the Mahinda Rajapaksa-era Strategic Development Projects (SDP) Act to reintroduce tax incentives aimed at attracting large-scale Foreign Direct Investment (FDI). • The move seeks to circumvent existing limitations on tax concessions under the IMF program to revive critical, capital-intensive projects. • Key projects targeted include the US$ 3.7 Bn Hambantota oil refinery and various Port City projects, which were previously stalled due to the absence of tax benefits. • Cabinet Spokesman assures that the incentives are limited and project-specific, intended to support economic recovery while maintaining fiscal discipline under the IMF. • The decision faces caution: The IMF previously warned against tax exemptions weakening revenue performance. The World Bank and Human Rights Watch also cautioned on the adverse economic and social consequences of long-term tax holidays. • Local analysts highlight that granting tax concessions for projects like the Port City is seen as "unjust to other tax payers and corrosive to the broader economy."
📈 CoPF Approves Higher Levies on Imports & Demands Major Tariff/Excise Reforms
• The Committee on Public Finance (CoPF) has approved increased Special Commodity Levies (SCL) on key imports, effective 26 August 2025, aimed at protecting local farmers during the 2025 Yala season. • Levy Hikes: The SCL on imported big onions increased by Rs. 10/kg (from Rs. 40 to Rs. 50), and on imported potatoes by Rs. 20/kg (from Rs. 60 to Rs. 80). • Tariff Reform Mandate: CoPF demanded an overhaul of the national tariff structure to be sustainable, simple, transparent, and predictable. Ministries were directed to assess the shift to a four-band import duty system and the gradual phase-out of para-tariffs (SCL/CESS) between 2027 and 2030. • Agricultural Support: A national project was recommended to promote high-yield cultivation kits for big onions and integrate storage/buy-back schemes within five years to reduce dependence on tariffs. • Excise Enforcement: New rules were approved to tighten duty collection from liquor manufacturers. Non-payment will now lead to production suspension after 30 days and a halt to distribution/sales after 90 days, replacing the previously insufficient penalty mechanism.
🏗️ Sri Lanka Approves National Building Code Development
• The Government is developing a National Building Code for Sri Lanka to strengthen regulation, quality, and safety within the construction sector. • The initiative is being formulated with technical assistance from the World Bank Group, and the NBRO's project proposal has received Cabinet approval. • The new codes will be comprehensive, covering key areas including structural integrity, fire safety, electrical/plumbing systems, energy efficiency, and disaster resilience. • This development addresses long-standing issues in the industry and aligns with a priority recommendation from the International Monetary Fund (IMF). • Once established, the framework will introduce legally enforceable standards for the design, construction, and maintenance of buildings, ensuring better health and resilience against natural disasters.
CEB Engineers Flag Major Flaws in Energy Reform Transfer Plan 🚨
The Ceylon Electricity Board Engineers’ Union (CEBEU) has called for immediate intervention from the Sectoral Oversight Committee, alleging serious legal and procedural violations in the ongoing electricity sector reform process. • Legal Violations: CEBEU states the reforms violate the Sri Lanka Electricity Act No. 36 of 2024 and the Electricity (Amendment) Act No. 14 of 2025. • Transfer Plan Dispute: The core issue is the Preliminary Transfer Plan (PTP)—a mere 10-page document outlining the transfer of CEB assets and liabilities to new companies. • Lack of Consultation: The PTP draft was reportedly rushed for internal comment (4 working days) and approved by the Minister of Finance on 11 Oct without any stakeholder consultation with employees or unions. • Statutory Deficiencies: The PTP allegedly fails to meet key statutory requirements, lacking critical details on: • Asset/liability allocation and valuation. • Financial plans for successor companies. • Framework for employee transfers and pension fund contributions. • Structural Issues: Only four of the six planned successor companies have been incorporated. • Union Warning: CEBEU warns that implementation of the PTP in its current form could lead to the entire electricity sector facing "collapse" due to the Ministry's handling of the process. The union urges a review and proper consultation.
🇦🇪 UAE Court Rules: Total Interest Cannot Exceed Original Loan Value! ⚖️
• Landmark Decision: The UAE Federal Supreme Court has reaffirmed a major ruling prohibiting financial institutions from charging interest on accumulated or compound interest. • Key Cap: The ruling establishes that the total interest payable on any loan must not exceed the original value of the loan principal. • Case Impact: This decision overturned a judgment requiring a borrower to pay AED 1.553 million on an original loan of AED 700,000. The court noted the accrued interest (AED 860,147) violated the principal cap. • Interest Type: The court clarified that only simple interest is allowed on outstanding balances after account closure. Crucially, delay interest (compensation for late payment) must also not cause the total debt to exceed the original principal. • Significance: This sets a powerful legal precedent for limiting debt exposure related to interest charges for borrowers across the UAE.
🚢 US$ 1 Bn X-Press Pearl Fine Shakes Global Shipping Market
• Sri Lanka’s US$ 1 Bn court ruling for the 2021 X-Press Pearl disaster has sparked alarm among global shipping insurers. • James Bean, CEO of the London P&I Club (the insurer), called the judgment "alarming," warning it could significantly drive up global marine insurance premiums. • Impact on Sri Lanka: Sri Lanka is not a signatory to international conventions that cap ship owners’ liability. This exposes owners to unlimited claims, potentially resulting in higher insurance premiums specifically for ships docking at Sri Lankan ports. • Global Risk: Insurers fear that a surge in premiums may push some vessels toward uninsured, unregulated "shadow fleets," increasing global maritime risk. • The issue is further complicated because existing conventions do not cover plastic pellet spills, one of the major environmental impacts of the incident.
🇱🇰 EY Urges Sri Lanka to Adopt Accrual Accounting for Public Finance 📈
• The International Public Sector Financial Accountability Index 2025 by IFAC/CIPFA/IPSASB details global advancements in public sector financial reporting. • Global Status: 31% of jurisdictions currently use a full accrual basis, with 30% remaining on a cash basis and 39% on partial accrual. • Projected Trend: Although high-income nations lead currently, the report projects that by 2030, more middle- and low-income groups will advance to accrual-based accounting. • SL Recommendation: Ernst & Young (EY) Sri Lanka suggests it is an "ideal time" for the Government of Sri Lanka (GoSL) to revisit its plans for adopting accrual-based financial reporting. • Key Benefits: Transitioning to accrual accounting significantly enhances public financial management by: Improving transparency (recognizing all transactions when they occur). Strengthening accountability. Supporting inter-generational equity.
ICCSL Drives Tax Awareness in Universities 🎓
• The International Chamber of Commerce Sri Lanka (ICCSL), spearheaded by its Committee for Research, Knowledge Mobilisation and Taxation (RKMT), has launched a national tax awareness initiative for youth. • The program's core objective is to bridge the tax knowledge gap among undergraduates and position understanding taxation as a key component of responsible citizenship and the social contract with the state. • Recent Session: The most recent successful session was held at the Faculty of Management and Finance, University of Colombo. • Key Practical Insights: Experts from leading firms (EY, KPMG) provided essential practical guidance on key principles, including how to apply for a Taxpayer Identification Number (TIN) and register with the Inland Revenue Department (IRD). • The drive emphasized connecting academic theory with real-world application, covering legal frameworks, compliance, and fostering long-term transparency and trust essential for sustainable national development. • Outlook: ICCSL plans to continue expanding this initiative across multiple universities and academic institutions to reach future entrepreneurs and young taxpayers nationwide.
💊 Proposed Pharma Strategy Sparks Trade Protectionism Debate 📈
• An ADB-commissioned strategy report advocates for restricting pharmaceutical imports to boost local production, currently meeting only 15% of national requirement. • The strategy is criticized as "economic protectionism" and market isolationism, designed primarily to shield domestic manufacturers from fair competition rather than ensuring public health or price competitiveness. • Consumer Impact: Protectionist policies are warned to lead to higher prices for consumers and often lower quality goods. The burden of high prices on Sri Lankan consumers is highlighted by the wage disparity (US min wage worker earns more per hour than SL counterpart earns per day). • IMF & Global Risk: A pivot towards protectionism is viewed as directly contradicting ongoing IMF program reforms based on trade liberalization. This risks undermining program compliance, eroding investor confidence, and damaging Sri Lanka’s international standing. • Crucially, implementing these restrictions could see Sri Lanka globally blacklisted by MNCs (Multi-National Corporations), stalling R&D and potentially resulting in critical medicinal shortages.
Govt. Launches Major Push for Sports Tourism 🏏
• Tourism Minister Vijitha Herath announced the formation of an operations committee comprising public and private sector officials to accelerate efforts to promote sports tourism in Sri Lanka. • The decision follows a key meeting with representatives from the Youth Affairs and Sports Ministry, Sri Lanka Cricket, and various national sports federations. • The committee's core focus is to attract international visitors by fully leveraging national and international sporting events, including cricket, rugby, and football tournaments. • It will also work to integrate existing events (marathons, surfing, cycling) into the broader tourism strategy, improve crucial infrastructure, and enhance global visibility. • Sports tourism is identified as a key component of the Government’s long-term tourism plan, aiming to position Sri Lanka as a leading regional destination.
Police Caution Public Over Predatory Digital Loan Schemes ⚠️
• Sri Lanka Police and the Central Bank (CB) have issued a joint warning regarding a surge in complaints over deceptive online and mobile loan schemes. • Lenders are promoting instant cash without collateral, but borrowers are subsequently facing financial distress due to undisclosed fees and excessive interest rates. • Predatory recovery methods include harassment, repeated calls, and public shaming/defamatory social media posts against those who fail to meet repayments. • A joint probe confirms that many of these digital lending entities are unlicenced and unregulated by the Central Bank. • Public is strongly urged to obtain credit only from institutions authorised and regulated by the Central Bank and to verify their legitimacy before borrowing. Oversight measures are currently being introduced.
🇱🇰 Transport Ministry to clear backlog, 300,000+ driver's licences in 3 months 📈
• The Ministry of Transport, Highways, Ports and Civil Aviation expects to print and distribute over 300,000 pending driver's licences within the next three months. • Procurement for 1 million cards is complete, with a new licence featuring enhanced security slated for introduction later this year. • The Minister instructed officials to install printing machines in every province to significantly accelerate the licence issuance process. • Supplier selection for new vehicle number plates is currently underway, awaiting Cabinet approval for finalisation. • The Committee also reviewed the integrated passenger transport timetable, with plans to identify shortcomings and expand it to more regions for improved efficiency. • A pilot project aimed at reducing elephant-train collisions has been allocated Rs. 2.8 million for installing long-range surveillance cameras on trains along the Batticaloa line.
📈 SL Expands Tax Exemptions for Green Investment & Key Industries
The Government has issued a new Gazette, effective from 15 October 2025, significantly expanding duty and tax exemptions on capital goods for priority development projects via the bonded warehouse scheme. • Objective: Accelerate the transition towards renewable energy and sustainable industrial growth, aligning with the 2026 economic roadmap. • New Scope: The regulation amends the 2018 framework to specifically include Renewable Energy storage as an eligible investment sector. • Eligible Sectors: Registered companies engaged in constructing or expanding facilities in the following five key industries now qualify for the exemptions: Dairy manufacturing Pharmaceutical manufacturing Medical equipment production Solid waste management Renewable Energy generation or storage • Renewable Energy Threshold: Eligible projects must involve at least 1 megawatt (MW) of generation capacity or 1 megawatt-hour (MWh) of storage capacity. • Impact: The measure is expected to attract local and foreign investment into Sri Lanka’s clean energy sector, helping the country move closer to its ambitious target of generating 70% of electricity from renewable sources by 2030.
Sweeping Labour Law Reforms: Four New Bills to Modernise Employment Framework 📜
• The Government is advancing its comprehensive labour law reform agenda, preparing to introduce four new bills to modernise Sri Lanka's employment framework. • These four bills will simplify and consolidate existing laws, specifically covering: • Trade Unions • Labour Relations • Occupational Safety • Termination of Employment • A 17-member committee is reviewing 14 existing labour laws. The goal is to balance worker welfare and protection with enterprise competitiveness and flexibility. • Interim amendments will be made to current laws (e.g., night work for women, labour protection, employment insurance) until the new framework is fully enacted. • Separately, the national policy on occupational safety and health is reaching its final stage. Work is also underway to upgrade the Labour Department’s database to register all workers under the government's digitalisation drive.
📈 Sri Lanka Tourism Boost: Govt Eases Entry & Improves Facilities for Upcoming Season.
• The government's Special Performance Force, appointed by President Anura Kumara Dissanayake, met (Oct 14) to take strict decisions required for the promotion of the tourism industry. • Key Initiatives Discussed: • Easing procedures for obtaining tourist visas and the Electronic Travel Permit (ETA). • Increasing the number of counters at the airport to reduce congestion upon tourist arrival. • Facilitating easier, online ticket purchasing for tourists visiting various sites. • The meeting also focused on addressing issues faced by tourists and parties within the tourism sector. • High-level attendees included Minister Vijitha Herath, Deputy Minister Ruwan Ranasinghe, and corporate heads like John Keells Holdings CEO Krishan Balendra and EKHO Hotels and Resorts VP Nihal Muhandiram.
WHO Regional Committee Session Opens in Colombo 🇱🇰
• The 78th session of the World Health Organisation’s (WHO) Regional Committee for South-East Asia has commenced in Colombo. • Sri Lanka's Health Minister, Dr. Nalinda Jayatissa, was elected to a key regional leadership post. • Minister Jayatissa will serve as the Committee’s Chairman for a one-year term.
Port City Law Amendments Approved by Cabinet 📈
• Cabinet has approved the proposal by President Anura Kumara Disanayake to instruct the Legal Draftsman to prepare amendments to the Colombo Port City Economic Commission Act, No. 11 of 2021. • The revisions are aimed at addressing regulatory gaps and investor concerns, following the repeal of key strategic business regulations on August 4. • The goal is to strengthen the competitiveness of the special economic region, attract foreign direct investment (FDI), and improve Sri Lanka’s global ease-of-doing-business rankings. • New measures are expected to restore investor confidence by clarifying the incentive framework and providing direct solutions to issues faced within Colombo Port City, which is positioned as an international business hub.
📈 Private Sector Minimum Wage Hikes Approved: Rs. 27,000
• The Cabinet has approved the full implementation of the National Minimum Wage of Workers (Amendment) Act, No. 11 of 2025, significantly raising the minimum wage for private sector employees. • Phase 1 Increase: The monthly minimum wage will increase from the current Rs. 17,500 to Rs. 27,000 with effect from 1 April 2025. • Phase 2 Increase: The minimum wage is scheduled to rise further to Rs. 30,000 starting 1 January 2026. • The revised wage applies to all statutory payments, including EPF, ETF, overtime, maternity benefits, probationary pay, and holiday entitlements. • Compliance is mandatory for all employers, including intermediaries and contractors. The Commissioner General of Labour has been tasked with full enforcement across all industries and services.
📈 Cabinet Approves Rs. 1.3 Bn Excise Revenue System Upgrade
• The Cabinet of Ministers has approved the award of a Rs. 1.3 billion contract for a new revenue administration system for the Excise Department. • The contract, which is tax-free, was granted to MillenniumIT ESP Ltd. and Metropolitan Technologies Ltd. This project contributes to the national ICT/BPM sector's involvement in public sector digitalization. • The new system will cover the design, development, implementation, and maintenance of the revenue administration structure. • Expected outcomes include improved efficiency via integrated data exchange, strengthened risk management and revenue reconciliation, and enhanced transparency and accountability in excise operations. • The approval followed the dismissal of three appeals that had been submitted to the Procurement Appeals Board regarding the tender process.
🇱🇰 FIU Boosts Global Fight Against Financial Crime 🛡️
• Sri Lanka’s Financial Intelligence Unit (FIU) of the Central Bank is set to sign Memoranda of Understanding (MoUs) with the Financial Intelligence Units of Vatican City State and Mauritius. • Both proposals have received Cabinet approval, according to Cabinet Spokesman Dr. Nalinda Jayatissa. • The core objective is to strengthen cross-border cooperation and intelligence sharing. • These agreements specifically target the combating of money laundering, terrorism financing, and proliferation financing. • The MoU with the Vatican's FIU (Financial Information Authority of the Holy See) will facilitate the exchange of information to support global efforts against financial crimes.
📈 GRA Urgency: 70% Gambling Activity Online, Dodging Taxes
The Committee on Public Finance (CoPF) has highlighted a major revenue gap concerning gambling activity in Sri Lanka: • Online Domination: An estimated 60-70% of all casino-related activity now takes place through online platforms. • Tax Loss: The State earns zero tax revenue from this significant majority of activity, as only 30-40% occurs in taxed, licensed physical establishments. • Regulatory Push: CoPF urged the immediate establishment of the Gambling Regulatory Authority (GRA) to develop a mechanism for taxing online casinos and overseeing the entire sector. • Government Commitment: Finance Ministry and IRD officials have agreed to implement this, aiming for the GRA to be fully operational by 30 June 2026. • Critical Context: The lack of oversight allows significant revenue loss and compromises Sri Lanka's compliance with FATF standards on anti-money laundering (AML) and counter-terrorism financing.
💼 President Urges Wage Hike for Plantation Workers, Assures Govt. Support
• President Anura Kumara Disanayake held discussions with representatives of major plantation companies (including the Planters' Association of Ceylon and EFC) regarding the proposed increase in estate workers' daily wages. • The President emphasized the importance of a living wage and improving living standards for plantation workers, proposing the increase to be in line with salary increments granted to public and private sector employees in the previous Budget. • The Government assured its fullest support to the industry to implement the wage increment and outlined its policy commitment to develop and strengthen the plantation sector. • Discussions covered the methodology for implementation, following company representatives outlining the current challenges faced by the industry.
⚖️ LAUGFS Suspends Dubai Unit (Slogal Energy) After US Sanctions
• LAUGFS Gas PLC has suspended all commercial operations of its Dubai-based subsidiary, Slogal Energy DMCC, pending a full compliance review. • The decision follows the US Treasury’s Office of Foreign Assets Control (OFAC) naming Slogal Energy for allegedly purchasing and selling Iranian-origin Liquefied Petroleum Gas (LPG) shipments to Sri Lanka and Bangladesh. • LAUGFS asserts Slogal Energy “never knowingly engaged in, or facilitated, any trade involving sanctioned entities or products of sanctioned origin,” stating all transactions followed international trade practices with supporting documentation. • The company is undergoing a legal and compliance review with US sanctions counsel and plans to petition for Slogal Energy DMCC's delisting from the US Treasury's Specially Designated Nationals (SDN) list. • Importantly, LAUGFS confirms its domestic LPG distribution business in Sri Lanka remains unaffected by this development.
Australian Fuel Investor Exits SL, Initiates Dispute Resolution ⛽
• Australian-owned United Petroleum Lanka (UP), which entered the local fuel retail market in August 2024, has initiated formal dispute resolution proceedings against the Government of Sri Lanka (GoSL). • UP suspended fuel supply operations in December 2024, citing the Government's failure to uphold critical contractual terms, leading to an economically unsustainable environment for the investment. • An orderly Exit Agreement, signed in April 2025 and endorsed by the Cabinet, was terminated in October 2025. • The termination occurred because the Ministry of Energy failed to fulfill a key undertaking stipulated in the exit agreement, despite United Petroleum meeting all its obligations and granting extensions. • UP stressed that the difficulties faced—from operation to exit—underscore the vital importance of policy consistency and adherence to contractual arrangements for attracting and retaining foreign investment.
WHO Director-General in Sri Lanka for Regional Health Summit 🌍
• World Health Organisation (WHO) Director-General Dr. Tedros Adhanom Ghebreyesus arrived in Sri Lanka yesterday (October 12th). • The visit is for the 78th Session of the WHO South-East Asia Regional Committee. • The high-level attendance highlights a focus on regional health policy and cooperation.
⚖️ SL Companies Act Amended: Beneficial Ownership Disclosure Mandatory
New amendments (Act No. 12 of 2025) to the Companies Act mandate full disclosure of beneficial ownership, aiming to end anonymous ownership and align Sri Lanka with global Anti-Money Laundering (AML) standards ahead of the FATF evaluation. • Core Requirements: Companies must register beneficial owners, maintain detailed registers for 10 years (even after liquidation), and notify the Registrar of changes within 14 days. The law also explicitly bans bearer shares. • Enforcement: Non-compliance carries substantial fines and criminal liability for directors, secretaries, officers, and shareholders. Ignorance is not an acceptable excuse. • Challenges: Industry experts note significant difficulties in enforcement due to tracing ownership through hidden family wealth and complex offshore structures (e.g., BVI, Hong Kong). Identifying beneficial owners in foreign corporate and fund structures is also complex. • Compliance Facilitation: The Registrar of Companies is preparing regulations, digitalizing the filing system for online submission, and will accept electronic signatures. While the Central Depositary System (CDS) assists, the primary legal responsibility rests with the companies.
✈️ Lawsuit Filed Against Qatar Airways Over Lankan Cardiologist's Death
• The family of 85-year-old Sri Lankan cardiologist Asoka Jayaweera has filed a wrongful death lawsuit against Qatar Airways, alleging the airline’s negligence caused his death. • The incident occurred on a flight from Los Angeles to Sri Lanka. Jayaweera, a "strict vegetarian," was allegedly denied his pre-ordered meal and instructed to consume a standard meal by "eating around" the meat. • He began choking on a piece of food shortly after, with his oxygen saturation levels dropping to a dangerously low 69%. He lost consciousness approximately three-and-a-half hours before the plane diverted to Edinburgh, Scotland. • The lawsuit alleges crew negligence, including refusal of an emergency landing. Jayaweera died on 3 August 2023 from aspiration pneumonia. • The family is seeking damages exceeding the US$ 175,000 statutory limit set by the Montreal Convention. Qatar Airways has not publicly responded to the filing.