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Govt. loses tax revenue due to foreigners’ on-field gem purchases

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It was disclosed at the Sectoral Oversight Committee on Environment, Natural Resources & Sustainable Development that there is a tendency of the government being deprived from receiving the expected tax due to the Chinese and Thai nationals illegally buying local gemstones at very low value from the market. It was further discussed that due to this, injustice is being done to gem businessmen who run their business fairly by paying taxes to the government.

This matter was taken into discussion at the Sectoral Oversight Committee on Environment, Natural Resources & Sustainable Development as it met to discuss issues related to import, export and re-export in the Gems and Jewellery sector recently in Parliament under the Chairmanship of MP Ajith Mannapperuma.

Representatives of business associations engaged in the Gems and Jewellery sector, officials including the Chairman of the Gems and Jewellery Authority, officials from the Ministry of Finance, Economic Stabilization & National Policies, officials from the Sri Lanka Customs and the President’s Senior Additional Secretary (Agriculture and Environment) were called before this Committee.

MP Ajith Mannapperuma, Chair of the Committee, pointed out that the main expectation of these discussions is to work to restore the prestigious name of Sri Lankan gems among foreign countries and to get foreign exchange from the export and re-export of gems.

2.5% social security tax scrapped
Officials representing the Ministry of Finance pointed out that an amended Bill has already been submitted to Parliament to exempt the process from the 2.5% social security tax imposed on the importation of gems for re-export, and the relief is to be given to businessmen in the future. It was also revealed that even if you have to pay a tax of 2.5% while importing gems for re-export by courier, you can bring a lot of precious gems as hand luggage by paying only 200 US dollars. The businessmen also asked gem traders to consider the possibility of levying 2.5% on turnover from the 30% income tax levied on profits on gem exports.

In order to avoid the tax levied by the government on cash transactions of more than Rs.500,000/=, the gem businessmen in the field are often tempted to carry out such high value cash transactions in cash and as a result, the businessmen who transact money fairly through banks and pay taxes properly to the government have to leave the field. The Chair of the Gems and Jewellery Authority told the committee that policies are currently being formulated to regulate the encroachment of foreign nationals into the gem industry in the country, and the committee emphasized the need for immediate implementation of the relevant policies.

The jewelers demanded that the import of gold be allowed tax-free through a license based on 30% of the exporter’s previous years’ export earnings or foreign exchange earnings. Officials representing the Ministry of Finance pointed out that there is currently no import hurdle for businessmen registered with the Board of Investment to obtain a permit for temporary importation of gold for export processing. Only import of 24 carat gold jewellery has been stopped, they said.

Sri Lanka Customs officials who were present said that under the TIEP Scheme (Temporary Import for Export Processing), gold can be imported into Sri Lanka without tax by registering with the Ministry of Industries as a raw material required by jewellery businessmen. However, due to the complexity of the process, businessmen expressed their reluctance to do so.

The Committee also focused its attention on the proposal received from gem businessmen regarding the establishment of a Sri Lankan bank in China or the establishment of a Chinese bank in Sri Lanka to facilitate their business activities. The official representing the Central Bank of Sri Lanka said that “Bank of China” has been operating in Sri Lanka since 2018 and establishing a Sri Lankan bank in China is difficult in view of the economic crisis that Sri Lanka is currently facing.

MPs Akila Ellawalaa and Waruna Liyanage, were present at this Committee meeting held. 

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President meets ex-South African President Thabo Mbeki   

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President Anura Kumara Disanayake met with former President of the Republic of South Africa, Mr. Thabo Mbeki, this afternoon (June 26) at the Presidential Secretariat.

Mr. Mbeki, who is on his first visit to Sri Lanka, expressed his appreciation for the opportunity to visit the country, stating that he has long followed Sri Lanka’s efforts toward national unity and reconciliation with keen interest. He noted that he was pleased to visit Sri Lanka at this significant moment.

Although South Africa and Sri Lanka are geographically distant, the former President observed that both nations share similarities in their multi-ethnic, multi-religious and multicultural compositions. He added that both countries face similar challenges in achieving peace and reconciliation and expressed his willingness to share lessons learned and experiences from South Africa’s own reconciliation journey.

Mr. Mbeki stated his confidence in President Disanayake’s ability to unite Sri Lanka’s diverse communities and overcome current economic and reconciliation related challenges.

President Disanayake reaffirmed his commitment to fostering national harmony and reconciliation while leading the country forward amidst economic challenges. He emphasized that he remains dedicated to building unity among all ethnic groups and steering the nation toward stability and progress.

Also present at the meeting were South African High Commissioner to Sri Lanka, Sandile Schalk, Chief Executive Officer of the Thabo Mbeki Foundation, Maxwell Boqwana  and the Foundation’s Chief Operating Officer, Mr. Lukhanyo Neer.

Representing Sri Lanka were Minister of Public Security and Parliamentary Affairs, Ananda Wijepala and Senior Additional Secretary to the President, Roshan Gamage.

Executive Group Director of The Capital Maharaja Group, Chevaan Daniel and Group Manager Anushka Lewke also joined the occasion.

(President’s Media Division)

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UN Human Rights chief calls to repeal Online Safety Act & PTA moratorium

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United Nations High Commissioner for Human Rights Volker Türk has called for the repealing of the Online Safety Act while also imposing a moratorium on enforcement of the Prevention of Terrorism Act (PTA).

Addressing a media conference in Colombo before concluding his visit to Sri Lanka,  the United Nations High Commissioner for Human Rights called for an expedited review and release of long-term PTA detainees and prisoners.

The UN Rights Chief said, “I also call for the moratorium of the use of the Prevention of Terrorism Act (PTA) and urge an expedited review and release of long-term PTA detainees and prisoners.”

“I also understand that a bill proposing the decriminalization of same sex relationships is before parliament and I hope it will be passed soon”, he added.  

In addition, he also called for police reforms in the country.

Meanwhile, a media release by the President’s Media Division states that the UN Rights Chief has expressed his complete support for the direction Sri Lanka is pursuing under the leadership of President Anura Kumara Disanayake to strengthen national unity, promote reconciliation and safeguard Human Rights.

During a meeting with President Anura Kumara Disanayake at the Presidential Secretariat this afternoon (June 26), the UN Rights Chief has commended the current political and social transformation taking place in the country and noted that people in both the North and the South have placed strong confidence in the President and the Government. Mr. Volker Türk stated that during his visit to Sri Lanka, he was able to gain a clear understanding of the on-going transformation taking place in the country. He expressed his belief that the people of Sri Lanka are now placing a renewed optimism for a brighter future.

The issue of missing persons was also discussed in detail. The High Commissioner observed that families of the missing whether in the North or the South share the same pain and emphasized the expectation of the UN Human Rights Office that the Sri Lankan Government will honour the trust these families have placed in it.

The discussion further stressed the importance of strengthening and restructuring the institutional framework responsible for addressing the issue of missing persons. It was noted that past political cultures had hindered these institutions from effectively delivering on public expectations and protecting the rights of citizens.

In his remarks, President Anura Kumara Disanayake stated that, as a political movement that has directly faced the experience of the missing persons his administration has a deep understanding of their pain.

The President emphasized that his government is fully committed to implementing the necessary reforms to ensure national unity, foster reconciliation and safeguard human rights across the country.

The President also emphasized that restoring economic stability remains a top priority of his administration. While recognizing the scale of the current challenges, the President reiterated his Government’s strong determination to address them and called for the continued support of the international community.

President Disanayake further said that international cooperation, including the support of the UN Human Rights Office and other global institutions, is essential for accurately conveying Sri Lanka’s actual circumstances to the global community and improving the nation’s international reputation.

Also present at the meeting were several senior officials from the United Nations, including UN Resident Coordinator in Sri Lanka Marc-André Franche, Chief of the Asia-Pacific Section of Global Operations Division Office of the High Commission for Human Rights (OHCHR) Rory Mungoven, Desk Officer of OHCHR Elaine Chan, Senior Human Rights Adviser at the Office of the United Nations Resident Coordinator Laila Nazarali, Development Coordination Officer, Office of the United Nations Resident Coordinator Azam Bakeer Markar and Public Information Officer of the OHCHR Anthony Headley.

Representing the Government of Sri Lanka were Minister of Justice and National Integration Harshana Nanayakkara, Minister of Public Security and Parliamentary Affairs Ananda Wijepala and Senior Additional Secretary to the President Roshan Gamage, among other officials.

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CIB Big City fined Rs. 1 mn. for selling overpriced bottled water

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CIB Big City, a private business outlet in Maharagama, has been fined Rs. 1 million by the Gangodawila Magistrate’s Court today (June 26) for selling overpriced bottled water.

A case was filed against the business outlet following a raid carried out by the Consumer Affairs Authority (CAA) officials on May 09, 2025.

During the raid, officials had discovered that a 500 ml bottle of water has been sold at Rs. 90 despite the MRP being declared as Rs. 70 by a gazette notification published on April 01, 2025.

The store is a part of the well known fashion chain – Wijaya Group, which is chaired by Mr. K.R.G Wijesundera.

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