ECONOMYNEXT – Sri Lanka’s Excise Department has digitalized its operational management system to make services more efficient, transparent, and closer to the public, the Finance Ministry said.

The move comes as part of the government’s digitization move to reduce corruption and raise efficiency of the revenue collection.

The Finance Ministry in a statement said the move was aiming to increase service efficiency and transparency through modern technological systems, ensuring fully digital transformation to secure state revenue.

“The new system, developed using modern information technology solutions, will streamline daily operations, enabling the public and the business community to access services easily and swiftly,” it said.

“Under this digitization program, the issuing and renewal of licenses, revenue collection processes, and information management will be facilitated entirely online. Furthermore, data analysis capabilities provided through the specialized system will help prevent state revenue leakage and ensure transparency across all departmental operations.”

The government expects the service seekers to receive faster service with a secured and safe state revenue through the new system.

Revenue leakages within Sri Lanka’s Excise Department have historically posed a significant challenge to the country’s fiscal stability, largely driven by systemic inefficiencies, widespread contraband trade, and illegal alcohol production.

Fragmented manual record-keeping, vulnerable licensing mechanisms, and inadequate oversight mechanisms have enabled significant tax evasion and underreporting of production volumes by manufacturers.

These operational vulnerabilities not only allow corrupt actors to bypass statutory levies, but also create substantial fiscal shortfalls for the state, analysts have said.

To directly address these gaps, prevent revenue loss, and enforce accountability, recent government initiatives have prioritized the complete end-to-end digitization of the department’s operational management, licensing, and revenue collection processes. (Colombo/August 18/2026)

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Tuesday trading, CSE data showed, with the benchmark All Share Price Index moving down 0.64 percent.

“Oil prices going up a bit and Trumps comments yesterday are bringing a bit of jitters to the market,” Ranjan Ranatunga, Assistant Vice President – Research at First Capital said.

US President Donald Trump announced yesterday that he was not interested in extending the interim peace deal struck with Iran.

“There were also a few days of positive profits and when they were realized market dropped,” Ranatunga said.

The ASPI was down 137.81 points at 21,479.07, while the more liquid S&P SL20 was down 0.72 percent, or 43.63 points, at 6,040.91.

Positive contributors to the ASPI were C. T. Holdings (up 4.74 percent at 525.00 rupees), Ceylon Tobacco Company (up 0.48 percent at 1,829.25 rupees), and Citizens Development Business Finance (up 2.33 percent at 39.50 rupees).

Sampath Bank (down 1.59 percent at 139.50 rupees), Dialog Axiata (down 2.08 percent at 47.00 rupees), Commercial Bank of Ceylon (down 0.97 percent at 203.75 rupees), and Bukit Darah (down 4.36 percent at 849.75 rupees) were top negative contributors.

Market turnover was 2.04 billion rupees. Capital goods led turnover with 993.8 million rupees.

“Bit of high net worth investors were active in the market while retainers remained less active.” Ranatunga added further

Ceylon Hotels Corporation disclosed the issuance of a corporate guarantee not exceeding 145 million rupees to Commercial Bank of Ceylon on behalf of its subsidiary, CHC Rest Houses. The aggregate value of corporate guarantees provided to the subsidiary exceeds 20 percent of the company’s net worth based on its FY 2024/2025 financial statements.

Shares of Ceylon Hotels Corporation closed down 2.51 percent at 31.10 rupees. (Colombo/August18/2026)

ECONOMYNEXT — Sri Lanka’s cabinet has approved presenting gazette notifications to Parliament to designate three companies as Primary Enterprises of Strategic Importance within the Colombo Port City, minister Nalinda Jayatissa said.

The three entities receiving this status are Marina Hotel Holdings (Private) Limited, Prime Melva Port City (Private) Limited, and Homelands Port City (Private) Limited.

Cabinet approval to designate Marina Hotel Holdings (Private) Limited as a Primary Enterprise of Strategic Importance was granted on March 30. The decision was later published under Extraordinary Gazette Notification No. 2483/17 dated April 10, 2026.

Approvals for Prime Melva Port City (Private) Limited and Homelands Port City (Private) Limited were granted at a subsequent cabinet meeting held on May 4.

The government issued the designations through Extraordinary Gazette Notification No. 2488/03 for Homelands Port City (Private) Limited and Gazette Notification No. 2488/04 for Prime Melva Port City (Private) Limited on May 11.

The gazetted orders will now be presented to Parliament to complete the statutory requirements under the Colombo Port City Economic Commission Act. (Colombo/Aug18/2026)

ECONOMYNEXT – Sri Lanka and Poland are set to sign an extradition agreement after the island nation’s cabinet of ministers approved the proposal, minister Nalinda Jayatissa said.

Sri Lanka’s Extradition Act, No. 5 of 1995, or the Transfer of Offenders Act No. 5 of 1995, has provisions for the bilateral exchange and repatriation of sentenced criminals.

“The proposal to sign an Agreement on Extradition between the Democratic Socialist People’s Government of Sri Lanka and the Polish People’s Government was approved by the Cabinet of Ministers to enable convicted nationals to serve their sentence in their home country and contribute to their social rehabilitation,” Jayatissa told reporters. (Colombo/Aug18/2026)

ECONOMYNEXT — Sri Lanka’s Cabinet of Ministers has approved publishing the draft ‘Protection of the State from Terrorism Bill’ in the Government Gazette and submitting it to Parliament for final approval, minister Nalinda Jayatissa said.

The new draft legislation aims to replace the Prevention of Terrorism (Temporary Provisions) Act (PTA), No. 48 of 1979.

The proposal was submitted following the work of a Technical Expert Committee appointed to prepare the preliminary draft.

The Cabinet initially granted in-principle approval on August 10, and the Legal Draftsman’s bill has now received official clearance from the Attorney General.

Reporters raised concerns regarding previous criticisms of the PTA, including prolonged detention without warrant, the admissibility of confessions as evidence, and broad definitions of terrorism that could affect public protests.

Jayatissa claimed the bill incorporates safeguards while maintaining national security.

“This Bill has been drafted in a manner that covers all of this: to protect the democratic freedoms and fundamental human rights of the people, as well as to prevent terrorism including organized crimes,” Jayatissa said.

Jayatissa’s party, the National People’s Power (NPP) came to power explicitly promising to scrap the Prevention of Terrorism Act (PTA).

On page 129 of their election manifesto, A Thriving Nation, A Beautiful Life, the NPP pledged the “Abolition of all oppressive acts including the PTA and ensuring civil rights of people in all parts of the country.”

Jayatissa claimed that while a broad public consensus has existed for decades to repeal the PTA, a modern legal framework remains essential to tackle organized crime and protect state security. (Colombo/Aug18/2026)

ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers has granted in-principle approval to amend the Foreign Exchange Act No. 12 of 2017 to make unauthorized transfers of funds out of the country a criminal offence, Cabinet Spokesman Minister Nalinda Jayatissa said.

The proposed legal reform follows an ongoing investigation into a fraud where 74 billion rupees was transferred overseas across 10,151 transactions via 89 bank accounts under the guise of import advance payments, without the corresponding goods ever entering the country, he said.

Under current provisions of the Foreign Exchange Act, remitting advance payments abroad and failing to import the goods within a reasonable period is deemed an unauthorized transfer.

However, the only action the Central Bank of Sri Lanka can take is imposing a monetary penalty in rupees equal to the transferred amount.

Because the Act does not define such transfers as a criminal offence, authorities have lacked the legal framework to file criminal charges.

To address the gap, the Cabinet approved a proposal to introduce explicit provisions criminalizing unauthorized outward remittances, Jayatissa said.

Responding to media queries on whether suspects could exploit existing loopholes, Jayatissa stressed the necessity of closing legal gaps.

“This amendment is being presented specifically to rectify shortcomings that existed in enforcing the law. There is a necessity to treat this as a criminal offense and enforce the law accordingly,” Jayatissa said.

The probe began in January 2026 when the Additional Director General of Customs lodged a complaint with the Financial Crimes Investigation Division (FCID).

After obtaining court permission to inspect 210 bank accounts, police arrested a suspect in Negombo on June 19, who was subsequently remanded.

The investigation recently led to the arrest of four executive officers, including managers from four private banks, who are being investigated under the Prevention of Money Laundering Act and the Penal Code for conspiracy, aiding, and abetting unauthorized telegraphic transfers.

Asked by journalists whether influential politicians or business figures were involved behind the scenes, Jayatissa noted that investigations were continuing.

“At this stage, it cannot be said whether they are politicians or figures from the business sector. The Police are conducting their investigations, and those identified are being arrested and interrogated,” Jayatissa said.

He added that whether the proposed amendments will apply retrospectively remains subject to further legal inquiry.  (Colombo/Aug18/2026)