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Friday August 21st, 2026

Gotabaya says will abolish PAYE tax, slash Sri Lanka VAT, boost biz environment

ECONOMYNEXT – Sri Lanka Podujana Peramuna Presidential candidate Gotabhaya Rajapaksa promised sweeping tax cuts, employed workers and companies, more subsidies for farmers and investments in universities to boost graduates.

“We have to expect more from local businessmen, and we need to improve the business climate for them,” Rajapaksa told packed audience at Colombo’s Nelum Pokuna threatre Friday releasing his election manifesto.

“Obstacles to business such as archaic laws need to be modernized. There is excessive taxation and it affects people’s productivity and business success.”

The Economic Service Charge and withholding taxes for private companies and levies on religious places will be repealed, if he is elected Rajapaksa said.

“The VAT rate will be reduced to 8 percent.

The pay-as-you-earn tax will be removed for both public and private sector employees,

Both PAYE and ESC are advance collections on income tax.

If elected, income taxes for the manufacturing sector will be reduced.

A simple tax scheme will be imposed on vehicle imports, he said.

He said that technology will be introduced at the Inland Revenue Department, Customs Department and the Excise Department to fill gaps in tax collection.

Rajapaksa said no resource should be exported without value addition.

The manifesto had paid special attention to religion and national security will be a key responsibility of the government, he said.

He said that investments will be made in his first year of office in the education sector to ensure each student passing A Level exams will have the opportunity to earn a degree.

Diploma holders will be given the opportunity to earn globally recognized degrees as well.

“We want to make young Sri Lankan skills in demand in the global economy,” Rajapaksa said.

“We want to create a knowledge-based economy.”

“Creativity will also be cultivated,” Rajapaksa said.

The manifesto outlined investments for local transport infrastructure, ports and airports, with plans to grow the tourism industry to US$ 10 billion dollars.

Rajapaksa promised free fertilizer and the writing off of agriculture loans for farmers and the introduction and better agriculture technologies.

Business support and investments to grow agriculture, animal husbandry and fisheries and attract younger generations to these sectors will also be pursued, he said.

Sri Lanka will be made into a world-famous organic agriculture sourcing destination under the manifesto.

He also said that women will be empowered to start businesses and join the workforce, and flexible working conditions will be introduced for new mothers to work from home.

Rajapaksa said that national security will be a main function of the government, and the sovereignty and democracy of Sri Lanka will be protected.

He outlined investments in the judicial service to expand it and introduce processes so that the backlog of delaying court cases will be resolved.

“Political and institutional corruption will be eradicated and laws will be strengthened to prosecute corruption,” he said.

“These are not empty political promises. I want everyone to support me, no matter your political party, race or religion. All that is needed is love for the country.”

“We need to make Sri Lanka a leading country in the world. A country to which people return to, instead of a country which people leave.” (Colombo/Oct25/2019)

Sri Lanka trade body strengthens business links with Qatar, Lebanon

ECONOMYNEXT – The Ceylon Chamber of Commerce has signed an agreement with the Qatar Sri Lanka Business Council (QSLBC), and the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon (CCIA-BML).

The two MoUs provide a framework for the Chambers to exchange business and economic information, facilitate contacts between their respective business communities and identify opportunities for trade, investment and commercial cooperation.

The signing with the QSLBC comes as Sri Lanka and Qatar mark 50 years of bilateral relations.

The chamber was pleased to support and cooperate with both organisations, Krishan Balendra, Chairperson of The Ceylon Chamber of Commerce, said.

“The partnerships would help strengthen connections between the respective business communities and create opportunities for greater trade, investment and commercial engagement.”

Secretary of the QSLBC B A W C Gunasekara noted the potential to further strengthen business relations between Sri Lanka and Qatar and facilitate greater interaction between companies in both markets.

The agreements add to the Ceylon Chamber’s international network of chamber and business organisation partnerships, supporting its efforts to connect Sri Lankan businesses with overseas markets, partners and investment opportunities. (Colombo/Aug21/2026)

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Sri Lanka stocks up on Friday morning, capital goods lead turnover

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange indices were trading higher on Friday morning, CSE data showed, with the benchmark All Share Price Index moving up 0.11 percent.

The ASPI was up 22.76 points at 21,428.38, while the more liquid S&P SL20 was up 0.27 percent, or 16.12 points, at 6,035.37.

Positive contributors to the ASPI were John Keells Holdings (up 0.51 percent at 19.90 rupees), Citizens Development Business Finance (up 4.80 percent at 39.30 rupees), Sierra Cables (up 5.83 percent at 34.50 rupees), and Sampath Bank (up 0.36 percent at 140.00 rupees).

RIL Property (down 2.02 percent at 24.20 rupees), Aitken Spence (down 1.06 percent at 140.00 rupees), and Ceylon Cold Stores (down 0.20 percent at 125.00 rupees) were top negative contributors.

Market turnover was 274.9 million rupees. Capital goods led turnover with 178.8 million rupees.

Sierra Cables announced a board-approved capital investment plan of 3,229,760 US dollars in new machinery and infrastructure to double its export production capacity in response to strong overseas demand. The capacity expansion is set to complete by the end of FY2026/27, becoming commercially operational from April 1, 2027. Shares of Sierra Cables closed up 6.13 percent at 34.60 rupees. (Colombo/August21/2026)

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SriLankan Airlines sponsors student’s travel to India for ShakthiSAT

ECONOMYNEXT – SriLankan Airlines will sponsor a student’s travel to India for a project by Mission ShakthiSAT, that will have young women from 108 countries collaborating to build a satellite for the first time.

Seneesa Goonewardana, a student from St Bridget’s Convent, was selected through a competitive selection process which saw over 200 participants from the STEM field.

“We encourage students to make the most of every opportunity to learn, explore their interests, and pursue their ambitions with purpose,” Deepal Perera, Manager, Corporate Communications, Sri Lankan Airlines said. 

The program will take place from August 22 to 31 at Gautam Buddha University in India, during which Seneesa will be exposed to several workshops, meet and greets, and meet Indian Prime Minister Narendra Modi.

“As the national carrier, we are proud to support this pioneering mission and to see a young Sri Lankan take their place on an international platform in space exploration.”

Seneesa will be accompanied by Sulochana Segera, ShakthiSAT Ambassador for Sri Lanka. 

Srimathy Kesan, Founder and Chief Executive Officer of Space Kidz India, launched the programme.  (Colombo/August20/2026)

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Sri Lanka rupee improves to 329.25/50 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee appreciated further to 329.25/50 to the US dollar in the spot market on Friday, from 330.10/20 the previous day, while bond yields held broadly steady, dealers said.

A bond maturing on 15.12.2028 was quoted at 10.25/35 percent.

A bond maturing on 01.08.2030 was quoted at 10.75/85 percent, down from 10.80/90 percent.

A bond maturing on 01.08.2030 was quoted at 10.80/90 percent.

A bond maturing on 01.02.2031 was quoted at 10.85/93 percent.

A bond maturing on 15.12.2032 was quoted flat at 11.15/25 percent.

A bond maturing on 15.01.2033 was quoted at 11.25/30 percent.

A bond maturing on 15.10.2034 was quoted at 11.65/75 percent, down from 11.70/80 percent.

A bond maturing on 15.08.2036 was quoted at 11.90/12.00 percent, down from 11.95/12.00 percent.

A bond maturing on 01.07.2037 was quoted at 11.95/12.05 percent, up from 11.95/12.00 percent.

The telegraphic transfer rates for the dollar was 325.6500 buying 334.6500 selling; euro was 378.5366 buying 392.3174 selling, and pound was 443.5644 buying 457.6728 selling. (Colombo/Aug21/2026)

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Sri Lanka’s Hemas CEO outlines key challenges in newly acquired Kenyan venture

ECONOMYNEXT – Supply chain management, strong competition, and the political landscape in Kenya will be the key challenges in managing the newly acquired business Twiga Stationers & Printers,  Sri Lanka’s diversified conglomerate Hemas Holdings PLC’s Group CEO   Ashish Chandra said.

Sri Lanka’s Hemas Holdings PLC completed its first landmark international acquisition by purchasing a 75% stake in Kenya’s Twiga Stationers & Printers Limited for $16.1 million through its subsidiary, Atlas Axillia Company.

This milestone transaction marks a major strategic shift as Hemas establishes an operational manufacturing and distribution footprint in East Africa’s dynamic $136 billion economy.

Chandra, Hemas Group CEO said the supply chain management will be the biggest challenge as the stationary business is seasonal.

“About 65 to 70% of the business is done in the 3 months, which is typically from November onwards to January because that’s a special school season,” Chandra told EconomyNexrt in an interview on Wednesday regarding the acquisition of the Kenyan firm.

“So, it’s very important to procure and ensure that you have a supply of paper at the right cost during that time. And paper is a commodity. The prices keep going up and down, and especially with the Middle East economic crisis, this becomes a challenge,” he said.

“So frankly, what is very important for us to secure, right paper quantity at the right cost every year. And that’s where I think the expertise of Atlas comes into picture because we had been doing this over for many years where we can bring those expertise there to bring it up. So that’s, frankly, is the biggest challenge that we have.”

Twiga is a market leader with prominent local brands like Kasuku, CrownBird, and Envoy in Kenya.

With the acquisition, Hemas gains immediate access to Kenya’s 54 million consumers as well as broader trade routes across the East African region, which has a 330 million customer base.

Strong Competition

Chandra said the second challenge comes from the competitors as the competition is expected to grow over time, especially since the third and fourth competitors have merged to become a strong number 2 player.

“So there’s a renewed focus from the competition. Than there are few international players also coming into the market. So competition continues. But I always believe competition  always take the industry to the next level. But that’s definitely a continuous challenge,” he said.

The acquisition also unlocks commercial synergies between Atlas Axillia and Twiga in product innovation, manufacturing efficiency, and back-to-school consumer segments.

Establishing East Africa and Bangladesh as core pillars of its international consumer strategy allows Hemas to hedge against domestic macroeconomic volatility in Sri Lanka, diversifying its revenue base into high-growth international markets.

Chandra said Kenyan government policies also will matter in the business, as the east African nation is scheduled to hold elections next year.

“Like in Sri Lanka, a lot of the stationery and paper market also depends on the subsidy that the government gives to the schools, which is then further given to the students to buy books and other stuff.” he said.

He said if there is any policy change after the elections, it “can impact the market”.

“But we are pretty well aware and we’ve been handling this here also. The challenges are similar in Sri Lanka, too.” (Colombo/August 20/2026)

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Sri Lanka rupee closes at 330.10/20 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee appreciated sharply to close at 330.10/20 to the US dollar in the spot market on Thursday, from 331.10/20 the previous day, while bond yields held broadly steady, dealers said.

A bond maturing on 15.09.2027 closed flat at 9.60/80 percent.

A bond maturing on 15.03.2028 closed at 9.98/10.05 percent.

A bond maturing on 15.10.2028 closed at 10.10/20 percent, up from 10.05/15 percent.

A bond maturing on 01.08.2030 closed at 10.80/90 percent, up from 10.75/85 percent.

A bond maturing on 01.02.2031 closed at 10.90/11.00 percent, down from 10.95/11.00 percent.

A bond maturing on 15.12.2032 closed at 11.15/25 percent.

A bond maturing on 01.11.2033 closed at 11.40/50 percent.

A bond maturing on 15.10.2034 closed at 11.70/80 percent, down from 11.80/90 percent.

A bond maturing on 15.08.2036 closed at 11.95/12.00 percent, down from 12.00/05 percent.

A bond maturing on 01.07.2037 closed at 11.95/12.00 percent, down from 12.05/15 percent. (Colombo/Aug20/2026)

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