BIZ

Imposing tax on coconut oil another episode of ‘sugar tax fraud’?

Published

2 years ago

July 26, 2023

editor

Finance State Minister Ranjith Siyambalapitiya’s statement that a tax of Rs.25 will be imposed on a litre of imported coconut oil in order to protect local coconut oil producers has created a stir.

A Special Customs Levy of Rs.15/- is already being charged for a litre of imported coconut oil.

However, State Minister Siyambalapitiya has made the new statement when stocks of nearly 10,000 tons of coconut oil imported are stored in bonded warehouses.

According to the economic experts, the coconut oil to be released to the local market in bonded warehouses will be exempted from the new tax and the importers will only have to pay the old tax of Rs.15/=.

Meanwhile, the price of a litre of coconut oil had decreased by Rs.40 in the last few weeks to Rs.535 due to the depreciation of the US Dollar.

However, the price of coconut oil has increased to about Rs.565 rupees per litre, with the US Dollar appreciating again from 302 to 333 rupees.

At present, no tax is paid at the port on imported coconut oil and palm oil to Sri Lanka, and a tax is paid when they are being released from bonded warehouses.

Therefore, the government has to collect taxes from imported coconut oil intermittently.

When ‘Sri Lanka Mirror’ inquired about the companies that operate bonded warehouses of imported coconut oil, it was reported that Asian Company, Narada Agro and Pyramid Wilmar operate bonded coconut oil warehouses.

Meanwhile, National Movement for Consumer Rights Protection President Ranjith Vithanage said that increasing the tax on imported coconut oil will not bring any relief to the consumers.

He expressed these views at a news briefing held yesterday (25).

BIZ

End of parate relief for large SMEs

Published

7 hours ago

July 1, 2025

editor

The grace period granted to small and medium-sized enterprises (SMEs) under Sri Lanka’s Parate Execution Law officially ended midnight yesterday (June 30) for businesses with loans exceeding Rs. 50 million.

The Parate Law grants banks the authority to seize properties pledged as collateral without court proceedings. Although its implementation had been suspended for three months by the current administration—and for six months earlier under former President Ranil Wickremesinghe—it has now been reinstated, triggering serious concern among entrepreneurs.

Deputy Minister of Economic Development – Dr. Anil Jayantha Fernando has stated that the government intends to hold discussions with all relevant parties in the coming days to address the issues linked to the law’s reimplementation.

Meanwhile, Opposition Leader – Sajith Premadasa has warned that the re-implementation of the Parate Execution Law could lead to the rapid auctioning of assets from small, medium, and micro businesses, putting them at risk.

In a statement yesterday (June 30), he emphasized that these businesses contribute over 50% to Sri Lanka’s Gross Domestic Production (GDP) and employ over 04 million people.

BIZ

Special FD scheme for senior citizens introduced

Published

7 hours ago

July 1, 2025

editor

The Ministry of Finance has officially launched the special fixed deposit scheme for senior citizens.

Proposed in the Budget 2025, the scheme which is open to resident Sri Lankan citizens aged 60 years and above, comes into effect from today (July 01).

Eligible fixed deposits can be opened between July 01, 2025, and December 31, 2025, and must have a 12-month tenure.

The scheme will be implemented through the 17 licensed commercial banks; five (05) government banks and twelve (12) private banks that have confirmed participation. As part of the process, customers are required to provide a declaration confirming that the funds deposited are their own, their monthly income is less than Rs. 150,000, consenting to the sharing of relevant information with the Ministry of Finance, Planning and Economic Development for verification purposes, agreeing that any false information provided will result in disqualification from receiving the interest subsidy.

The government has allocated Rs. 30 billion to cover interest subsidies under this initiative.

Key features of the scheme:
– Deposit Period: 12 months (1 year)

– Deposit Limit: Maximum of Rs. 1 million

– Interest Benefit: Depositors will receive either

An additional 3% over the Average Weighted Fixed Deposit Rate (AWFDR), or
An additional 3% over the declared fixed deposit rate—whichever yields a higher return.

Senior citizens interested in availing themselves of the benefits are encouraged to visit the nearest bank branch starting today. Applicants must provide valid documentation, including their National Identity Card (NIC) and Taxpayer Identification Number (TIN) issued by the Inland Revenue Department (IRD).

This scheme aims to support the financial security of senior citizens by offering them a safer and higher-yielding savings option.