Sri Lanka to begin VAT refunds for good exporters soon: tax office

Monday November 24, 2025 5:30 pm

ECONOMYNEXT – Sri Lanka will begin value added tax refunds for exporters who are considered lower risk within days, with early applications coming in the first week of the month, Director General of Inland Revenue R P H Fernando said.

Exporters are expected to make the refund application for input VAT credits by November and the Inland Revenue will keep the cash for a maximum of 45 days before returning them, under the new law.

“The first applications came on November 2-3,” Fernando said. “Though the tax law allows 45 days we are trying to make refunds very fast.

“In a day or two (ada hetamer) we will be able to make the first refund.”

Sri Lanka tax authorities have classified companies entitled to tax refunds, based on previous interactions with the Inland Revenue as low risk, medium and high risk.

“We will make the refunds for low and medium risk exporters within 16 days, and for those considered high risk by January 15,” Nafeel Abu Bakr, Senior Commissioner – Tax Policy, IRD, said.

“We have established two special export refund branches, and appointed several officers to them,” he said.

The first report was given and 30 exporters will receive the VAT refund before January 15, he said.

Sri Lanka halted the SVAT system, where a paper input credit not was issued for local suppliers by final exporters due to earlier delays of VAT refunds.

The SVAT system was scrapped under an International Monetary Fund program, after macro-economists triggered serial currency crisis and an external default.

Under a value added tax system, exports are zero rated and the companies are entitled to claim an input tax refund which they will pay to suppliers.

However in East Asian export nations supplies into zones and within free zones are zero rated.

At the moment, exporters are allowed to bring in imported inputs tax free. (Colombo/Nov24/2025)

Tuesday November 25, 2025 6:35 am

ECONOMYNEXT – Foreign investors sold around 6.2 million US dollars worth Sri Lanka government securities in the week ending November 20, recording a second weekly selling, Central Bank data showed, amid depreciation pressure on the rupee.

It was the third week foreigners have sold rupee bonds in the last 12. The foreign holding in government securities hit a two-year high early this month.

Foreigners sold 1,870 million rupees (USD 6.23 million at 1$=300 rupees) in the week after selling 920 million rupee worth of bonds in the previous week.

The selling comes amid gradual fall in the rupee in the recent past amid higher imports from strong private credit growth and central bank dollar purchase to boost foreign exchange reserves.

The foreign holdings hit a two year high on the week November 6, recording over 141 billion rupees.

The island nation, however, has witnessed inflows to a net 31,952 million rupees (106.5 million dollars) in the last 13 weeks.

Sri Lanka suffered an outflow of 10.1 billion rupees ($32 million) in the two weeks soon after Donald Trump’s tariff declaration in the first week of April and the rupee has fallen slightly since then.

The island nation has enjoyed a total inflow of around 69.3 billion rupees (around $231 million) into rupee bonds since December 26 last year through November 20, the data showed.

Sri Lanka’s deflationary policies have helped to see inflows amid curtailed imports, analysts have said.

The country witnessed foreign outflows worth 48.2 billion rupees in 2024 with 66 percent or 78.1 billion rupees worth outflow from the government securities in the first nine months of last year. (Colombo/November 25/2025)

Lena Westlund, International Fisheries Analyst, FAO Rome addressing the gathering

Monday November 24, 2025 3:37 pm

ECONOMYNEXT – Sri Lanka and countries bordering the Bay of Bengal marked World Fisheries Day 2025 on 21 November by acknowledging small-scale fisheries’ contributions to coastal livelihoods, food security, and sustainable development.

The event was organized by the Food and Agriculture Organization of the United Nations (FAO) and the Bay of Bengal Programme Inter-Governmental Organization (BOBP-IGO) with the Government of Sri Lanka.

The event brought together representatives from Bangladesh, India, Maldives, and Sri Lanka, and fisher organizations, partners, and local institutions, to strengthen regional cooperation in the fisheries sector.

“World Fisheries Day is an opportunity to celebrate the contribution of small-scale fishers and fish workers,” said Pandian Krishnan, Director of BOBP-IGO.

“Through the NPOA-SSF process, our countries are translating the Voluntary Guidelines for Securing Sustainable Small-Scale Fisheries, a global commitment, into concrete action, strengthening governance, empowering fishing communities and ensuring long-term sustainability in the Bay of Bengal.”

More than 4.3 million Sri Lankans depend directly or indirectly on fisheries for their livelihoods, and our ocean, rivers and lakes, Prime Minister Harini Amarasuriya said.

“By working together with our partners, we are advancing shared goals for sustainability, resilience and prosperity, ensuring that our coastal communities can thrive for generations to come”.

World Fisheries Day recognizes the importance of sustainable fisheries for food security, livelihoods and economic growth.

It calls attention to the need for responsible management of aquatic resources, better working conditions for fishers, and greater recognition of their role in local and global aquatic food systems.

This year, FAO and BOBP-IGO showcased how regional cooperation and local commitment are shaping a stronger, more sustainable small-scale fisheries sector across the Bay of Bengal.

A key focus of the event was the advancement of National Plans of Action for Small-Scale Fisheries (NPOA-SSF) – national strategies that guide countries in implementing the Voluntary Guidelines for Securing Sustainable Small-Scale Fisheries (SSF Guidelines).

FAO and BOBP-IGO also convened a Regional Inception Workshop on NPOA-SSF development from 20 to 22 November which launched National Task Forces (NTFs) in each of the four member countries.

“World Fisheries Day reminds us that small-scale fisheries are vital to global food security, coastal livelihoods, and the health of our ocean,” said Vimlendra Sharan, FAO Representative in Sri Lanka.

“FAO works with countries to ensure that these communities, who produce nearly half of the world’s fish for human consumption, have the tools, knowledge and voice they need to thrive.”

This year’s celebrations coincide with FAO’s 80th anniversary, eight decades dedicated to support sustainable fisheries, food security, and coastal livelihoods worldwide. (Colombo/Nov24/2025)

Monday November 24, 2025 2:44 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange dropped steadily since open on Monday to close down 1.47 percent at 22,644, as profit taking continued.

The All Share Price Index was down 338.72 points. The S&P SL20 closed down 1.21 percent, or 76.80 points, at 6,287.81, according to provisional data.

Turnover was 4,95 billion rupees. Most of this came from capital goods stocks.

The market has seen volatility in the past few days amidst some profit taking, brokers said, which they opined was normal following a budget.

“We are seeing profit taking and some follow up action from that,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC said.

There was a possibility that this might last a few days, he said, as the index was “at a certain level where we might have frequent dips.”

“But it’s nothing to worry about, we don’t think it’s significantly overpriced; selected stocks are likely to see more movement.”

Top negative contributors to the ASPI were HNB (down 9.75 rupees at 400), Richard Pieris and Co (down 2.20 rupees at 40.20), NDB (down 4.25 rupees at 145), Sampath Bank (down 2 rupees at 146.75), and John Keells Holdings (down 30 cents at 22.60 rupees). (Colombo/Nov24/2025)

Monday November 24, 2025 1:47 pm

ECONOMYNEXT – Sri Lanka has launched a pilot program to enable card payments of bus fares at the Makumbura tranist center, a government statement said.

“No additional fee will be charged from passengers when paying bus fares through cards,” Transport Minister Bimal Ratnayake was quoted as saying at the launch event.

The payment of bank fees will be transferred to the bus owners, he said, and bus owners will receive benefits. Ratnayake did not specify what these would be.

He said that the card payment program will be closely monitored in the coming days, and the government hopes to further develop the system based on the strengths and weaknesses identified.

“This system will start on several bus routes from today. It is planned to introduce the system on several more routes from tomorrow.” (Colombo/Nov24/2025)

Monday November 24, 2025 12:50 pm

ECONOMYNEXT – Sri Lanka’s move to set price controls on 350 medicines is intended to favour Indian medicines in the local market, and pushes out British, US medicines, former minister Wimal Weerawansa has alleged at a pocket gathering.

The present National People’s Power government signed 7 agreements with India, he said, of which one saw Sri Lanka for the first time approving Indian standard medicines.

“They are setting price controls so that Indian manufactured medicines can capture the local market. Then what happens? The medicines of British standard will not come to Sri Lanka, medicines of American standard will not come to Sri Lanka,” the anti-west, nationalist Weerawansa said.

“So now whether we like it or not, we have to buy medicines of Indian standards when we are sick.”

“Only 30 odd countries buy Indian standard meds,” the controversial former minister alleged.

“Before this government came to power, we could import only medicines up to British standards or above,” Weerawansa was seen telling a meeting and quoted on private tv channel Derana.

“If medicines below those standards were brought in that was illegal.”

“No other government in 76 years have done a low thing [Thup-pahi] like this.”

Last week Sri Lanka’s National Medicines Regulatory Authority (NMRA) announced maximum retail prices (MRP) for 350 drugs, including common medications for blood pressure, and some cancer medications, effective immediately.

Read more
Sri Lanka announces price controls for 350 drugs
Sri Lanka to seek court approval for pharmaceutical price controls
The NMRA was set up in 2015, setting up a new agency for price controls and triggering a craze for price controls in the name of price regulation. (Colombo/Nov24/2025)

Monday November 24, 2025 10:46 am

ECONOMYNEXT – Sri Lanka’s debt office has offered 50 million dollars of 1 to 3 year forex denominated bonds, with an option to increase the take up if demand is high.

The notice said 1 year, 2 years and 3 years bonds will be offered, at a fixed rate to be determined through competitive bidding.

Domestic Dollar Bonds – DOCUMENT OF OFFER

The bonds are targeted at local banks. (Colombo/Nov24/2025)