Beedi tax hike misses revenue target as smuggling, license drop take toll

The latest increase in tobacco tax on beedi products has failed to meet its intended revenue targets, with authorities pointing out a drop in licensed manufacturers and rising illicit trade as key reasons for the shortfall.

Export earnings top US $ 8.3bn in 1H25

Sri Lanka’s export economy packed a punch in the first half of 2025, crossing the US $ 8.3 billion mark for the first time in three years, as a surge in services and agri-based shipments helped offset the sectoral drag.

SL’s tourism growth slows in July; industry eyes visa-free scheme for crucial boost

Sri Lanka’s tourism sector is facing a significant slowdown in arrival growth for the second consecutive month, with July figures indicating a sharp drop in momentum.

IMF stresses need for stronger revenue measures in Budget 2026

The International Monetary Fund (IMF) yesterday stressed the importance of firm fiscal discipline, as Sri Lanka prepares its 2026 national budget.

Govt.’s learning curve ending, project momentum building: Construction sector

A top construction industry leader voiced cautious optimism for Sri Lanka’s construction sector, suggesting the government’s initial “learning curve” is now over and is anticipating a new sense of urgency in project

Central Bank stays pat on key policy rate as economic indicators move in right direction

The Central Bank left its key policy rate unchanged at its fourth monetary policy announcement yesterday, as Governor Dr. Nandalal Weerasinghe said all macroeconomic indicators are moving in the right direction, capturing the sentiments of the Monetary Policy Board, which decided the current policy stance is just about at the right level to accomplish their mandate in maintaining price stability.

Sri Lanka’s unit trust industry sees widening investor base

Sri Lanka’s unit trust industry has demonstrated a significant expansion in its investor base over the past year, a positive indicator for financial inclusion and capital market depth.

National consumer prices rise 0.6% in June on electricity tariff hike

Sri Lanka’s consumer prices, measured nationally, rose by 0.6 percent in June from a month ago levels, picking up from 0.5 percent in May, as the upward revision to the electricity prices in June sent the non-food prices higher.

FDI more than doubles in 1H2025, signalling investor confidence

Sri Lanka’s foreign direct investment (FDI) inflows have more than doubled in the first six months of 2025, reaching US$ 507 million, a stark 101 percent increase from the US$ 252 million recorded in the same period last year.

Sri Lanka revises maximum financing limits for vehicles

The Central Bank issued fresh guidelines to the banks, finance companies and leasing establishments, outlining the new upper limits for loans and lease facilities granted to purchase vehicles, while removing the preferential high limit assigned for electric vehicles (EVs), effective from July 18.

LTL Holdings withdraws record Rs. 20bn IPO application

LTL Holdings Ltd has withdrawn its Rs.20 billion initial public offering (IPO), the largest ever attempted on the Colombo Stock Exchange (CSE), due to delays in the subscription process, the company disclosed

Storage challenge looms as Sri Lanka ramps up solar adoption

Sri Lanka is turning to energy storage systems, including battery and hydro-based solutions, to address the growing imbalance between solar energy supply and demand, a move the government said is critical to sustaining the island’s renewable energy ambitions.

July start signals even tougher climb to reach 3 mn tourist arrivals by year-end

Sri Lanka’s ambitious goal of welcoming 3 million tourists in 2025 faces further pressure after a lackluster start to July.

IRD mandates stricter quarterly tax reporting for banks

Sri Lanka’s Inland Revenue Department (IRD) has imposed stricter new quarterly filing requirements for the banks and financial institutions handling advance income tax (AIT) deductions on interest payments, effective immediately. Under circular No. SEC/2025/E/05, issued by Commissioner General Rukdevi P.H. Fernando, only the institutions deducting 10 percent AIT on interest, discounts or Islamic financial transactions must now submit the detailed

Pharma industry warns of collapse without buyback extension

The Sri Lanka Pharma Manufacturers Association (SLPMA) issued a stark warning, stating the country’s domestic pharmaceutical production could plummet to a mere 5 percent of government supply if critical buyback agreements are not extended.

Boost for Sri Lankan garment sector as UK launches new trade measures

On July 10, the UK government unveiled a package of reforms to simplify the imports from developing countries like Sri Lanka.

Tariff tensions tighten thread in SL’s textile trade

Sri Lanka’s apparel sector, a key pillar of the island’s export economy, yesterday raised red flags over the United States’ move to impose a 30 percent reciprocal tariff on all Sri Lankan products starting 1 August

Industry leader warns of “digital isolation” as new VAT threatens to derail Sri Lanka’s ICT sector

With Sri Lanka’s new 18 percent Value Added Tax (VAT) on foreign digital services now a settled policy taking effect this October, focus has sharply shifted to its potential economic fallout.

Temu imports linked to Rs. 35–50mn daily duty fraud

A significant duty fraud scheme involving courier imports from popular e-commerce platforms like Temu is causing a daily loss of between Rs. 35 to 50 million in tax revenue to the Sri Lankan government, industry leaders claimed at a press conference held in Colombo this week.

Shippers’ Council defends freight rule against calls for review

The Sri Lanka Shippers’ Council (SLSC) yesterday mounted a defence of the nation’s state-mandated all-inclusive freight regulation, as the government signals willingness to review the regulation.

Credit to private sector gains steam in May ahead of full impact from rate cut 

Credit to the private sector by the licensed commercial banks picked up pace in May. This is after a brief slowdown in April caused by the festive season holidays.

UNDP warns household debt crisis worsening

The United Nations Development Programme (UNDP) warned that Sri Lanka’s household debt crisis has likely intensified since last measured in 2023, as it threw its weight behind a major new financial literacy drive with the Central Bank.

IMF warns of export-driven 3% GDP drop ahead of US tariff deadline

As Sri Lanka’s export sector holds its breath ahead of the 9 July deadline for the 44 percent US reciprocal tariff to take effect, the International Monetary Fund (IMF) yesterday expressed serious concerns about the

IRD revenue soars 42% on back of sweeping VAT reforms

Sri Lanka’s Inland Revenue Department (IRD) hauled in a staggering Rs.2,620.07 billion in 2024, a 42.22 percent surge from the previous year, according to its recently released annual performance report.

Don’t panic! Banks tell SMEs as parate relief ends

Sri Lanka’s licensed commercial banks urged small and medium enterprises (SMEs) to not panic, as concerns mount over the use of parate laws from 1 July.

Sticky trouble for F&B sector as new labelling rules kick in

The new food labelling and advertising regulations coming into force today risk turning the sweet gains sour for the local food and beverage (F&B) sector, the industry stakeholders said, describing the rules as impractical and a potential disruptor for the manufacturers across the board.

SL lacks reform momentum despite political shift: Top economist

Sri Lanka is falling short of delivering the structural transformation it claims to seek, despite the growing rhetoric around revival and sustainable growth, warned internationally renowned economist Prof. Razeen Sally.

BOI Chief flags US$ 3.7bn Sinopec refinery as “Fragile”

The head of Sri Lanka’s Board of Investment (BOI) has characterised the highly anticipated US$ 3.7 billion Sinopec oil refinery in Hambantota and Adani Group’s renewable energy project as “fragile investments,” acknowledging the significant uncertainty surrounding their realisation.

SL failed to capitalise on strategic location: Verite Research

Despite decades of celebrating its strategic position, Sri Lanka has fundamentally failed to capitalise on its prime location, a critical factor that remains the key to unlocking its potential as a developed nation, asserted prominent economist and Verite Research Research Director Subhashini Abeysinghe.

Sri Lanka must target over 8% growth through innovation overhaul: Top economist

Sri Lanka must shift its focus towards fostering innovation, empowering entrepreneurs, and moving beyond its current economic trajectory to achieve a prosperous future with a sustained growth rate of over 8