News

The All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) crossed the 18,500 mark for the first time today.

According to the CSE, the ASPI closed at an all-time high of 18,541.26 points at the end of trading, after gaining by 379.77 points or 2.09%.

The CSE added that a turnover of Rs. 10.2 billion was recorded at the close of trading.

The Cabinet of Ministers has granted approval to pay an annual allowance of Rs. 7,500, inclusive of both the teachers’ allowance and uniform allowance, to educators serving in registered religious schools affiliated with the Buddhist, Hindu, Islamic, Christian, and Catholic faiths.

Religious education plays a vital role in guiding society toward spiritual development, the Cabinet Spokesman said.

Therefore, it has been recognized providing teachers’ allowance and uniform allowance to encourage the teachers serving in religious schools without any personal expectations to obtain their undisturbed service as well as for the progress of religious education essential for the betterment of the society.

Accordingly, from the year 2026, the Cabinet of Ministers approved the proposal furnished by the Minister of Buddhasashana, Religious and Cultural Affairs to pay an annual amount of Rs. 7,500 inclusive of teachers’ allowance and uniform allowance to the teacher in registered religious schools belong to Buddhist, Hindu, Islam, Christian and Catholic Religious schools.

The Sri Lankan government is moving forward with plans to establish a national network of daycare and therapy centres for children with autism spectrum disorder (ASD) and other neurodevelopmental conditions.

Secretary to the President Dr. Nandika Sanath Kumanayake has directed officials to prepare a detailed concept proposal within two weeks, following discussions held yesterday at the Presidential Secretariat.

The President’s Office states this initiative, championed by President Anura Kumara Disanayake, aims to create a coordinated system involving multiple ministries and government departments, with the Presidential Secretariat overseeing implementation.

The programme will utilise a Rs 250 million allocation from this year’s budget, channelled through the Ministry of Women and Child Affairs to district-level administrators. Key aspects of the plan include developing specialised human resources, creating a scientifically validated care model and establishing clear operational guidelines.

During yesterday’s meeting, officials emphasised the need for an integrated approach that brings together healthcare providers, social services and education specialists to ensure comprehensive support for affected children and their families.

Senior government figures attending the planning session included Kapila Janaka Bandara, Senior Additional Secretary to the President, K.D.R. Olga Secretary to the Ministry of Women and Child Affairs, Sampath Manthrinayake, Secretary, Ministry of Rural Development, Social Security & Community Infrastructure, H.A. Hema Perera, Additional Secretary, Darshani Karunaratne, Director, Department of Social Services and representatives from health, social services and rural development ministries.

Medical specialists such as Dr. Varuni Rasadi from the Ministry of Health, Dr. Asiri Hewamalage, Deputy Director (Community Health) and Dr. Santhushitha Senadhipathi from the Lady Ridgeway Hospital also attended the discussion.

President Anura Kumara Dissanayake emphasized that in order to successfully implement the proposed education reforms, it is essential to both enhance the infrastructure across the entire education system and strengthen its institutional framework.

The President made these remarks during a discussion held at the Presidential Secretariat with Minister of Education Dr. Harini Amarasuriya and senior officials from the Ministry of Education.

At the President's Office in Colombo, Sri Lanka President Anura Kumara Dissanayake was briefed by officials from the Ministry of Education on the proposed education reform agenda.

The President emphasized that the government is fully prepared to support the reform process by conducting a thorough study and providing necessary resources based on identified needs.

He noted that achieving the desired outcomes from these reforms would require a complete transformation of the entire education system.

According to the President's Media Division, the President stressed the importance of focusing not only on physical infrastructure and facilities, but also on human resource development to ensure the success of the reform initiative.

He further instructed that, following a comprehensive study, detailed plans and budget estimates should be submitted, and assured that the upcoming national budget would allocate the required provisions to support the reform process.

The discussion also highlighted the need to pay special attention to teachers and university students, and to engage all stakeholders in meaningful dialogue to gather ideas and recommendations for the education reform roadmap.

The Supreme Court today directed the University Grants Commission (UGC) to strictly enforce the guidelines formulated to prevent harassment in universities.

The court also instructed the Minister of Education and Higher Education to provide the necessary financial, technical support, and facilities for the implementation of these guidelines.

The order was issued while considering a fundamental rights petition filed by Pasindu Hirushan de Silva, a first-year student who sustained physical and brain injuries due to harassment in 2020.

The directive was given by a three-judge bench comprising Justices Shiran Gunaratne, Priyantha Fernando, and Sobitha Rajakaruna.

The bench further ordered the case to be re-called on January 14th to review the progress made in implementing the court’s orders.

The government will implement a new Value Added Tax (VAT) regime targeting digital services provided by non-resident companies to Sri Lankan consumers, effective October 1, 2025, under the provisions of the VAT (Amendment) Act No. 4 of 2025.

According to the Inland Revenue Department (IRD), the revised law requires foreign digital service providers, such as streaming platforms, e-commerce sites, and software companies, to register for VAT in Sri Lanka and charge 18% VAT on services offered to local users.

The department has also issued detailed implementation guidelines via Gazette Notification No. 2443/30, outlining the scope, obligations, and enforcement mechanisms under the new tax policy.

Key services covered

Among the digital services now subject to VAT are:

Streaming platforms (video, music)

Online gaming and gaming platforms

Software as a Service (SaaS)

Cloud computing and cloud collaboration platforms

E-commerce marketplaces

Social media platforms

Digital marketing and online advertising

Hotel booking and ticketing apps

Subscription and membership websites

Blockchain and NFT platforms

FinTech services

IT support and managed services

Who is affected?

The new rules define “non-resident persons” and “electronic platforms,” placing mandatory VAT collection and remittance responsibilities on foreign companies delivering digital goods and services in Sri Lanka.

Marketplace facilitators such as platforms that enable third-party sales may also be held liable for VAT reporting in certain cases.

Foreign service providers are required to obtain a Tax Identification Number (TIN) and register for VAT if their annual turnover exceeds Rs. 60 million, or Rs. 15 million in any three-month period.

Enforcement and penalties

The IRD has warned that non-compliance with registration or payment obligations could result in penalties under the new regulations.

The move brings Sri Lanka in line with global tax practices seen in countries such as India, Australia, and members of the European Union, which have implemented digital service taxes to level the playing field between local and international service providers.

The government expects the measure to enhance tax compliance, ensure fair competition, and boost domestic revenue generation from a fast-growing digital economy.

Sri Lanka says it has successfully negotiated a reduction in the U.S.-imposed tariff rate from 44% to 30%, positioning itself more competitively among peer nations in the global trade landscape. The announcement follows weeks of high-level discussions and strategic engagement led by the Sri Lankan government.

Speaking on the development, Dr. Nandalal Weerasinghe, Governor of the Central Bank, emphasized that Sri Lanka had been at a disadvantage compared to other countries competing in the U.S. market. “While we faced a 44% tariff, several of our competitors enjoyed significantly lower rates,” he noted. “Now, with the revised 30% rate, we find ourselves in a more favorable position relative to countries like Laos, Myanmar, Cambodia, Thailand, Bangladesh, Serbia, and Indonesia, which still face tariffs ranging from 31% to 40%.”

Dr. Weerasinghe further explained that Sri Lanka now shares the 30% bracket with countries such as Algeria, Bosnia, Iraq, Libya, and South Africa. Meanwhile, nations like Brunei, Japan, Kazakhstan, Malaysia, South Korea, and Tunisia benefit from even lower rates at 25%. “This shift enhances our relative competitiveness,” he added, “and we must continue to engage intelligently and strategically to further improve our standing.”

On April 2, during a press briefing held at the Rose Garden of the White House, U.S. President Donald Trump announced a new reciprocal tariff policy aimed at addressing trade imbalances with partner countries. As part of this initiative, a 44% tariff was imposed on imports from Sri Lanka.

President Trump explained that the decision was driven by the need to correct longstanding trade deficits and ensure fair treatment in international trade.

Following the announcement, the Sri Lankan government initiated diplomatic discussions with the U.S. to seek a reduction in the imposed tariff rate.

As a result of these negotiations, President Trump issued a formal letter yesterday confirming a 14% reduction in the tariff rate, bringing it down to 30%.

In the letter, the U.S. President highlighted the persistent trade imbalance between the two countries, attributing it to Sri Lanka’s tariff and non-tariff barriers, as well as other trade restrictions. He stated that these factors have hindered the development of a mutually beneficial economic relationship.

The letter also noted that the new tariffs were necessary to address continuous trade deficits, which pose a threat to U.S. economic interests and national security. However, President Trump offered encouragement to Sri Lankan businesses, promising expedited approvals for companies that choose to establish operations within the United States.

Despite the reduction, President Trump issued a warning: if Sri Lanka responds to the new tariff rate by increasing its own tariffs on U.S. goods, the United States will swiftly raise its tariffs again. He reiterated that while the U.S. hopes for a long-term trade partnership, future tariff adjustments—either increases or reductions—will depend on the evolving nature of bilateral relations.

The U.S. administration, through a letter from President Donald Trump, has indicated that discussions may continue until August 1, offering Sri Lanka a window to pursue further concessions. “Had all our proposals been accepted earlier, this process might have concluded already,” Dr. Weerasinghe remarked. “But we are navigating this with a focus on economic and social impact, aiming to maximize national benefit.”

Dr. Harsha Suriyapperuma, Secretary to the Ministry of Finance, echoed these sentiments, stating that Sri Lanka has received one of the most substantial tariff reductions among the countries involved in the U.S. trade review. “From the outset, His Excellency the President has been directly involved, leading stakeholder consultations and guiding this process,” he said.

Dr. Suriyapperuma stressed the importance of maintaining momentum. “Our goal now is to continue this dialogue, engage relevant stakeholders, and ensure that Sri Lanka remains competitive in the international market. The President’s letter clearly outlines that we have until August 1 to make further progress, and we intend to use that time wisely.”

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has arrested the daughter of remanded specialist neurosurgeon Dr. Maheshi Wijerathne.

The assistant director (legal) of the Bribery Commission lodged a complaint with the Keselwatta police stating that she was threatened with death by the daughter of the neurosurgeon.

Accordingly, Bribery Commission officials arrested the daughter today (07).

A letter submitted to the Bribery Commission by President’s Counsel Maithri Gunaratne, who is appearing on behalf of the young woman, is found below.

The price of a 400-gram packet of imported milk powder has been increased by 100 rupees.

The Milk Powder Importers' Association stated that the price hike in Sri Lanka is based on a 25% to 30% increase in global market prices for milk powder.

Accordingly, the price of a 400-gram packet of milk powder will increase from Rs. 1,100/= to 1.200/=.

Former Minister of Agriculture Duminda Dissanayake has been further remanded until 15 July in connection with the gold-plated firearm that was found at an apartment complex in Havelock Town.

He was further remanded after being produced before the Mount Lavinia Magistrate’s Court today.

Former minister Duminda Dissanayake was arrested in May while at a luxury apartment complex in Colombo, in connection with the gold-plated T-56 assault rifle that was found at the Havelock City Apartment complex in Wellawatte.

Two women, aged 40 and 68, were initially arrested, after which the investigations into the rifle were handed over to the Terrorism Investigation Division (TID).

Suspended Commissioner General of Prisons Thushara Upuldeniya, was released on bail today.

Colombo Chief Magistrate Thanuja Lakmali Jayatunga ordered the suspect to be released on a cash bail of Rs. 25,000 and two surety bails of 2 million rupees each.

A travel ban was also imposed on the suspect.

Upuldeniya was arrested by the Criminal Investigation Department (CID) in connection with an ongoing investigation into the unauthorized release of inmates under the guise of a Presidential pardon.

The Department of Railways has announced a revision to the train schedules on the Northern Railway Line, effective from tomorrow (July 7), in response to strong public demand.

Accordingly, the weekend-only intercity express train operating between Mountlavinia and Kankesanthurai will now run daily between Mountlavinia and Kankesanthurai. This move aims to better serve commuters along the Northern Line with enhanced daily connectivity.

In parallel, the departure time of the popular Yal Devi train from Colombo Fort to Kankesanthurai has also been revised. The train, which previously departed at 5:45 a.m., will now leave Colombo Fort at 6:40 a.m. daily starting tomorrow.

The Railway Department has requested all passengers who reserved seats for the Yal Devi over the past month to note the new departure time of 6:40 a.m., as mentioned in their official statement.