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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 16th contingent of the Sri Lanka Army departed the country on July 2 to serve in the United Nations Interim Force in Lebanon (UNIFIL) as part of the ongoing peacekeeping mission.

The group comprises 121 personnel, including 7 officers and 114 other ranks, and is led by Lieutenant Colonel Y.S.H.N.P. Silva as the Contingent Commander.

A group of senior Army officials, including Major General U.K.D.D.P. Udugama representing the Commander of the Army, were present at the Bandaranaike International Airport to extend their best wishes to the departing troops.

Meanwhile, the 15th Sri Lanka Army contingent, which had completed its UNIFIL deployment, returned to the island on the same day (July 2). This group consisted of 114 Army personnel.

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.

More than 300 suspects were arrested during a large-scale joint operation carried out on July 4 across Kandana, Ja-Ela, Wattala, and Ragama, the Ministry of Public Security confirmed.

The operation involved the Sri Lanka Police, Special Task Force (STF), Army, and Navy, and targeted a wide range of unlawful activities including narcotics-related offenses.

Authorities said the crackdown was launched in response to recent violent incidents and aimed at restoring public safety in high-risk areas. Roadblocks and sudden inspections were conducted throughout the night across key routes.

The Ministry urged the public to cooperate with law enforcement as similar island-wide operations are planned in the coming weeks to curb crime and drug-related activity.

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.

The Central Bank of Sri Lanka (CBSL) has decided to extend the suspension of Perpetual Treasuries Limited (PTL) from carrying on the business and activities of a Primary Dealer for a further period of six months.

The extension is with effect from 4.30 p.m. on 05th July 2025, in order to continue the investigations being conducted by the Central Bank of Sri Lanka.

The suspension has been extended by CBSL acting in terms of the Regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance.

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.

President Anura Kumara Dissanayake emphasized that no matter the extent of economic growth reflected in statistics, if the advantages of this growth do not extend to the rural communities, then such growth holds no significance.

The President further stated that while it is important to achieve national economic growth, it is equally essential to expand the economy in a way that creates opportunities for rural communities and makes them active participants in the economic process. He stated that this is a responsibility of the government.

The President made these remarks today (04) attending the launch of the “Prajashakthi” National Programme held at Temple Trees, the President’s Media Division (PMD) said in a statement.

The “Prajashakthi” National Programme has been launched as a key initiative of the current government, aiming to empower communities and ensure the fair distribution of economic benefits across society, according to the PMD.

The Secretary to the Ministry of Rural Development, Social Security and Community Empowerment, Mr. Sampath Manthrinayake, welcomed participants to the programme. The Secretary to the President, Dr. Nandika Sanath Kumanayake outlined the objectives of the initiative.

Following this, the Chairman of the “Prajashakthi” National Operations Committee and Minister of Rural Development, Social Security and Community Empowerment, Dr. Upali Pannilage, introduced the national movement.

The official “Prajashakthi” website was also launched by President Anura Kumara Disanayake during the event, the PMD added.

The full speech delivered by President Anura Kumara Disanayake:

“A few years ago, our country experienced a severe economic collapse. While there were various contributing factors to this collapse, we must not forget that ordinary people in rural areas, who played no part in its cause, endured the greatest hardships.

They were affected in areas such as food affordability, access to quality healthcare, educational opportunities and the development of rural infrastructure. Therefore, the present government has both a responsibility and a challenge to uplift rural lives. This is a duty that cannot be abandoned.

One of the top priorities of our government is to eradicate rural poverty as a key step towards national progress.

Today, we have managed to bring the economy to a relatively stable state. We have maintained the dollar’s value close to Rs. 300, steadily raised foreign reserves, directed treasury revenue to meet our goals and reduced interest rates to single digits. These are notable indicators of economic stability. We have also been able to gradually restore investor confidence in the country.

Numerous stalled projects have been successfully renegotiated and restarted. In addition, we have received a substantial number of proposals for new investment projects, many of which were approved at the recent Cabinet meeting. Therefore, our focus is now on new investments and development projects. Through these effective and results-driven investments, we can simultaneously achieve economic stability and economic growth.

However, if these economic benefits do not flow to the rural population, then even achieving growth in statistical terms is insufficient. This is why we must pursue economic growth on one hand and economic expansion on the other. If rural people are not given economic opportunities and included as stakeholders in the economy, they will become marginalised. Our core approach must therefore be to expand the economy and integrate rural communities into it.

This is possible only if the current rural economic activities are transformed into more productive, efficient and profitable ventures. These sectors should be developed to become thriving businesses. Widening their access to economic opportunities is also vital. Hence, we are prioritising the creation of new economic avenues for the rural population, making them active players in the economy.

Poverty has gone beyond being an economic issue and become a deep-rooted social problem. Poor communities have become isolated from society. Therefore, eliminating rural poverty is one of the government’s primary responsibilities. Education plays a key role in this. There is a direct correlation between poverty and lack of education. Thus, we must expand educational opportunities further. Despite all efforts, every society has a segment of people who will face difficulties. Even in so-called developed nations, such communities exist. A welfare system is required to support these groups.

Welfare is not inherently a bad tool. If a population is vulnerable at a given time, it is the government’s responsibility to protect them. However, welfare has often been misused, turning into a political tool. This has led to growing criticism of such programmes due to their politicisation.

Our policy under the National People’s Power government is to provide targeted welfare. Assistance must be given to the right people for the right reasons. I believe the government holds this responsibility and society must also understand its importance. In our society, there is a belief that anything given by the state must be received by all. That is a mistaken belief. Our state is not built on such a culture of entitlement. Our culture is to protect those who need protection. Because of distortions in past practices, those who don’t need aid often compete to obtain it, making it harder to support those who truly do.

We must therefore foster a new culture. People must be self-aware enough to recognise whether they truly deserve government support. Even if you have the ability, the person next door mat doesn’t have that ability. It is essential to cultivate a sense of responsibility to assist others. But today’s mentality is to claim whatever is available, regardless of whether one needs it or not. This is the reason we strive to create a strong data system, ensuring that support is provided solely to those who truly require it.

However, we all know that a society cannot rely forever on welfare programmes. There will always be a need for welfare systems, but they must not serve the same individuals or communities indefinitely. Others too must be enabled to become contributors to the economy.

Significant government funds have been expended for this purpose. Approximately, Rs. 230 billion has been allocated solely for the ‘Aswesuma’ programme. Large sums of money have also been spent on other aid programmes. However, have these funds reached the targeted communities? Have the intended benefits been realised from these funds? The answer is no.

Various international organisations implement aid programmes in this country. Looking at these, more than 50% of the expenditure goes towards establishing the mechanism for delivering the aid. An official waits to see how they can personally benefit from a project once it is received. They have their job, but the project is not within their purview. They then claim that an allowance is required to implement the project. Consequently, a substantial portion of these aid funds is spent on the aid delivery mechanism rather than reaching the intended beneficiaries. Furthermore, a significant amount has been spent on training within this mechanism. These practices must cease. As a government and as state officials, you have a responsibility to ensure that aid reaches the targeted communities.

We assure you that we will absolutely not allow any misuse of these funds. An operation must be launched to ensure that aid reaches those who are deserving.

Similarly, there is a tendency for every Ministry to believe they must provide something. However, based on a very accurate data system, it should be determined what should be provided and for what purpose. But what is happening now is not in that manner. Every institution and department is inclined to provide aid. Yet, all aid flowing to rural communities and programmes aimed at empowering their economies must be integrated. A large portion of our aid has been provided merely for subsistence. It has not succeeded in improving the living standards of these people. That is why an integrated operation is necessary. We are launching the ‘Prajashakthi’ programme as that operation. It is a targeted operation. The programme must be structured down to the Divisional Secretariat level.

Currently, a significant administrative structure has been built. I do not believe a child will be born without a birth certificate anymore. When they reach the appropriate age, they obtain an identity card. In the next two years, we will move towards a digitisation mechanism. So, what is the responsibility of the lowest administrative unit in this mechanism? The responsibility of the lower administrative unit is to understand the nature of its unit and to create a plan to advance that unit based on its characteristics. We must advance the Divisional Secretariat from this point onwards. A programme should be prepared for that. There is a need to spend money there and we are prepared for it.

I also acknowledge that our state mechanism is largely dilapidated. If you consider all the vehicles owned by state officials, they are all more than 15 years old. More than 50% of the buses on the road are vehicles unfit for road use. The computers in offices are significantly outdated. The systems in our institutions have not been updated. Buildings are deteriorating. From every angle, we have a dilapidated state mechanism. We come to the office like ordinary villagers. That is the honest truth. In the last budget, salaries were increased and necessary support was provided to human resources.

Therefore, in the upcoming budget, we will work to build the physical resources of the state mechanism. Relative to building physical resources, we will introduce new software systems and modernise the state mechanism. However, this is for the benefit of the citizens. If, within that modernised state, the same old person is sitting in the old chair, there is no benefit. Therefore, within this modernised state mechanism, we need a new public servant.

This is the only way we can overcome this challenge. Otherwise, if we scatter, thinking this is a political task, a job for the political authority, or for the Grama Niladhari , the Development Officer, or the Divisional Secretary, it cannot be achieved. To do this, an unyielding, integrated operation involving both the political authority and the state mechanism is required. The objective of the ‘Prajashakthi’ programme is to bring together the state mechanism, state officials and citizens into an integrated framework. Without this, nothing can be accomplished. Our aim is not merely to maintain the existing state; if that were the case, the current situation would suffice.

To rebuild a fallen state, the political authority, the state mechanism and the citizens must be brought together into an integrated operation. Therefore, there is a community that has lost economic opportunities in this fallen state. An integrated operation is needed to create economic opportunities for that community. I urge all of us to work together to make this ‘Prajashakthi’ project a success.

Dr. Upali Pannilage, Convenor of the ‘Prajashakthi’ National Policy Council and Chairman of the National Operations Committee, Minister of Rural Development, Social Security and Community empowerment :

When discussing poverty in our country, the village holds a special place. Not only in Sri Lanka, but internationally, especially when looking at Asia, Africa and Latin American regions, we cannot discuss poverty by forgetting the village. That is why the United Nations declared July 6th as World Rural Development Day.

Although rural poverty in our country has been a subject of discussion for decades, various attempts have been made to change it. However, for example, looking at the statistics for the year 2000, 1.1 million people in our country were dependent on aid. By 2010, this number had increased to 1.5 million. By the end of 2024, the number of people dependent on aid had reached close to 1.8 million.

These statistics confirm that despite numerous programmes implemented to eradicate poverty, the impoverished community in our country is growing steadily. Although the world’s population is rapidly urbanising, nearly 79% of our country’s total population lives in rural or estate areas. Therefore, as the National People’s Power government, when planning our policies, we made the eradication of rural poverty a central theme.

Before launching this programme, we thoroughly studied the weaknesses of the poverty eradication programmes implemented in our country. We designed this programme by addressing those weaknesses and providing answers to the question: How can we truly eradicate poverty in our country? Primarily, we expect to achieve several objectives through this programme."

Prime Minister Dr. Harini Amarasuriya; Sunil Handunnetti, Minister of Industry and Entrepreneurship Development; Wasantha Samarasinghe, Minister of Trade, Commerce, Food Security and Cooperative Development; Professor Chandana Abeyratne, Minister of Public Administration, Provincial Councils and Local Government; Samantha Viddyarathna, Minister of Plantation and Community Infrastructure; Saroja Paulraj, Minister of Women and Child Affairs; Mahinda Jayasinghe, Deputy Minister of Labour; along with other Ministers and MPs; Dr. Nandalal Weerasinghe, Governor of the Central Bank; Provincial Governors; Ministry Secretaries; state officials; and representatives from international organisations were among those who attended the occasion.

--PMD

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).

The Lanka Indian Oil Company (LIOC) has donated Rs. 100 million to the President's Fund.

Mr. Dipak Das, Managing Director of Lanka Indian Oil Company, handed over the relevant cheque to Dr. Nandika Sanath Kumanayake, Secretary to the President, at the Presidential Secretariat today (04).

It is noteworthy that this donation is in addition to the contributions Lanka Indian Oil Company already makes to the education, health and cultural sectors in the country.

Mr. Roshan Gamage, Senior Additional Secretary to the President and a group of representatives from Lanka Indian Oil Company were also present at the occasion.

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. 

The three-day stakeholder awareness programme on the Draft National Research and Development Policy, jointly organised by the Presidential Secretariat and the Ministry of Science and Technology, successfully concluded at Temple Trees in Colombo on Thursday.

This Draft National Research and Development Policy has been prepared under the guidance of Professor Gomika Udugamasooriya, Senior Presidential Advisor on Science and Technology, and Professor G.W.A. Rohan Fernando, Chairman of the National Science and Technology Commission, with the facilitation of the National Science and Technology Commission.

According to the President’s Office, it has received contributions from numerous local and international experts.

In line with the government’s policy of “A Thriving Nation – A Beautiful Life,” the objective of this programme is to secure stakeholder participation in formulating the necessary National Research and Development Policy framework to guide Sri Lanka towards a prosperous knowledge-based economy.

During the programme, ideas and suggestions from experts in the research and development field were gathered to ensure that the National Research and Development Policy, when practically implemented, aligns with national needs. Accordingly, this aims to formulate a futuristic policy to establish a centralised mechanism essential for successfully addressing current challenges in that field.

Accordingly, this Draft National Research and Development Policy has been prepared based on 10 objectives, including creating a conducive environment for research and innovation within the country, encouraging researchers and innovators, identifying national development priorities and establishing a broad platform for inventions and research focused on these, allocating adequate financial provisions for these research and development activities, and ensuring proper commercialisation.

This programme will be implemented with seven principles: promoting equity, effective governance, ensuring trustworthiness and transparency, embracing diversity, and inclusivity. Notably, gender considerations have also been taken into account during the drafting of this policy. The programme will be implemented as a joint initiative involving four sectors: the government, the private sector, the general public and international stakeholders.

Furthermore, the research and development sector has been categorised under 7 main themes: Agriculture and Food Security, Health, Science and Education, Technology Sector, Natural Resources, Economy and National Security and Arts and Human Development.

Dr. Nandika Sanath Kumanayake, Secretary to the President; G.P. Saputhanthri, Secretary to the Prime Minister; Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance; Y.L. Mohamed Nawawi, Secretary to the Ministry of Science and Technology; and Senior Advocate J.M. Wijebandara, Director General of Legal Affairs at the Presidential Secretariat, participated as invitees in this three-day programme.

During this programme, Professor Gomika Udugamasooriya, Senior Presidential Advisor on Science and Technology, briefed the participants on the Draft National Research and Development Policy.

Delivering the keynote address, Professor Gomika Udugamasooriya pointed out that there is currently visionary leadership that prioritises and values the research and development sector. He stated that economic progress, social well-being and environmental sustainability are the main objectives of formulating this national policy. He further added that according to United Nations reports, only about 60% of Sri Lanka’s human capital is utilised, and since the country has a highly intelligent population, this policy approach is crucial for properly leveraging their potential.

Professor Udugamasooriya stated that developed countries allocate between 3% and 5% of their GDP to the research and development sector, while countries like Sri Lanka have so far allocated a very small percentage to this sector. He expressed satisfaction that this situation is changing under the current government and further mentioned that investment in the research and development sector is essential for the advancement of innovation and for achieving high economic growth.

Professor G.W.A. Rohan Fernando, Chairman of the National Science and Technology Commission, in his inaugural address, stated that this Draft National Research and Development Policy proposes both a legal framework for research and an ethical framework of international standards. He further added that this is expected to strengthen Sri Lanka’s research and development sector, bringing it on par with those in countries such as India, China, Malaysia and Korea.

The concluding address of the programme was delivered by Mr. Y.L. Mohamed Nawawi, Secretary to the Ministry of Science and Technology, who stated that this programme should be implemented not individually but collectively, as a team, with collaboration, and he invited all stakeholders to participate.

At the end of the awareness session, which was held from 2:00 PM to 4:00 PM on all three days, stakeholders were given the opportunity to present their ideas and suggestions. Professor Gomika Udugamasooriya and the panel of experts provided answers and clarifications for these.

Over 650 individuals participated in this three-day programme, including Ministry Secretaries, Heads of Departments, and other senior government officials; Vice-Chancellors, Deans, and Heads of Departments from government and private universities; representatives from public and private sector research institutions; and independent researchers.