BIZ

Sri Lanka – China business zone launched

Published

3 months ago

March 27, 2025

editor

The formal inauguration of the 920-acre Sri Lanka-China Business Zone, established in Xinping Province, China to facilitate Sri Lankan entrepreneurs to expand their business operations in China, was held at the Jasmine Ballroom of the Bandaranaike Memorial International Conference Hall (BMICH) recently.

The initiative was organized by the Chairman of the Sri Lanka-China Business Council, Mr. Herbie Silva, and the Secretary of the Council, Ms. Sharmila Fernando, and the Council’s Business Finance and Management Advisor, Mr. Nipuna Wahalathanthrige. Distinguished representatives of the Sri Lankan government who attended the ceremony included the Secretary to the State Ministry of Defence, Retired Air Vice Marshal Sampath Thuyacontha; the Secretary to the Ministry of Fisheries, Mr. Sampath Mantrinayake; and the General Manager of the Fisheries Corporation, Mr. Mudalige Janaka Prasanna.

The ceremony was attended by high-ranking Chinese government officials, prominent Chinese investors, and a significant number of Sri Lankan entrepreneurs and business leaders. The discussions highlighted the mutual commitment to strengthening trade and economic cooperation between the two countries. It was emphasized that under the proposed business agreements, China will expand business opportunities for Sri Lankan entrepreneurs by providing financial assistance, technical assistance, and extensive infrastructure facilities.

The Chinese delegation included a group of distinguished representatives, including:
Mr. Li Jie, Deputy Director of Yuxi Investment Promotion Bureau, Mr. Shi Shufeng, Deputy General Manager of Yuxi Industrial Information Corporation Limited, Mr. Yang Shufeng, Deputy Commissioner of the Xining County Party Committee and Deputy Governor of the People’s Government of the Republic of China, Mr. Shi Shifu, Deputy Director of Xining Industrial Park Management Committee, Mr. Liu Jiaxi, Director of Xining County Investment Promotion Bureau, and Mr. Li Quan, Head of Yuxi Investment Promotion Bureau.

Mr. Herbie Silva, Chairman of the Sri Lanka-China Business Council, welcomed the participants and explained the investment strategy behind the establishment of the business zone. Retired Air Vice Marshal Sampath Thuyacontha, who was the special guest, expressed his gratitude to the Sri Lanka-China Business Council and the Chinese Government for creating this opportunity for Sri Lankan entrepreneurs.

During the event, representatives of the Chinese Government outlined the extensive facilities provided to Sri Lankan entrepreneurs in China. Ms. Sharmila Fernando provided insight into specific opportunities accessible to Sri Lankan businesses, while Mr. Nipuna Wahalathanthrige outlined a strategic roadmap for integrating local entrepreneurs into the global market.

A major highlight of the event was the signing of non-binding agreements aimed at facilitating cross-border trade and investment. For this initiative, TEMCO Cooperative Bank was selected as the official infrastructure provider to support Sri Lankan entrepreneurs in international markets and Dr. Ishantha Siribaddana, Chairman of TEMCO Banks Society, signed an agreement with the Sri Lanka China Trade Corridor. TEMCO Bank pledged to provide essential financial services to facilitate business links between Sri Lanka and China.

In addition, Mr. Gamini Kannangara, Chairman of Trico Logistics, formalized agreements with Chinese Business Assosiations AMCOT and ANLAN to streamline the export of finished goods from Sri Lankan entrepreneurs by ensuring the import of necessary raw materials and accessories. Furthermore, Mr. Nishantha Jayasuriya, CEO of CEC Agromart Sri Lanka, and Dr. Shammi Kumar, Director of Hiru Jaya Plantations, also signed MoUs to promote cooperation in the fields of agriculture, cash crop cultivation, tourism agriculture and green forestry.

Commenting on the importance of an entrepreneur’s contribution to a country’s economic stability, Mr. Nipuna Wahalathanthrige emphasized that entrepreneurs play a vital role in national development by producing what the country needs, thereby generating income, creating jobs and contributing to government tax revenue. He further stated that amidst a transformative political and economic landscape for the entire world and Sri Lanka, Sri Lanka would benefit immensely from utilizing the financial and infrastructure support provided by China, the world’s leading economic power.

The launch of the Sri Lanka-China Business Zone marks a significant milestone in bilateral economic relations, and aims to provide a dynamic platform for Sri Lankan entrepreneurs to thrive in international markets, while strengthening Sri Lanka’s position in the global trading arena.

BIZ

Sri Lanka targets digital income with new 18% VAT

Published

21 hours ago

July 7, 2025

editor

The government has announced that Value Added Tax (VAT) at 18% will be imposed on income earned through online services provided by foreign individuals and platforms to users in Sri Lanka, effective Oct. 01.

This move follows the issuance of an extraordinary gazette notification by the Commissioner General of Inland Revenue, Rukdevi Himali Fernando, aimed at regulating and taxing the growing sector of cross-border digital services.
Under the new regulation, the VAT will apply to a wide range of services, including but not limited to:

Software as a Service (SaaS)
Online stores and marketplaces
Digital advertising and marketing
Cybersecurity and IT support services
Video, music, and live-streaming platforms
Online banking and financial tech services
Social media and on-demand platforms
Hotel booking and ticket reservation apps
Online gaming platforms

The regulation also clarifies that any other digital service provided via an electronic platform from outside Sri Lanka to individuals residing in the country will be subject to VAT, even if not explicitly listed.

Foreign service providers are required to register for VAT if their supply of services exceeds Rs. 60 million annually or Rs. 15 million in the past three months. Prior to registration, such non-residents must also obtain a Taxpayer Identification Number (TIN).

This development comes amid growing debate over taxing foreign exchange earners and aims to expand the country’s tax base in the digital economy.

(dailynews.lk)

(Except for the headline, this story, originally published by dailynews.lk has not been edited by SLM staff)

BIZ

Lake Drive residents oppose ‘Golf – Colombo 08’ project

Published

24 hours ago

July 7, 2025

editor

Residents of Lake Drive, Colombo 08, have voiced strong objections to a proposed 12-storey apartment complex by Prime Residencies, titled “The Golf – Colombo 08,” claiming that it is being promoted without obtaining all the necessary approvals.

Promotional social media posts by Prime Residencies state the project will include 64 units, with buyers able to reserve units by paying just 25% upfront.

However, an investigative programme by ‘Ada Derana’ reveals that the Urban Development Authority (UDA) has clarified that the project currently has only conditional approval, dependent on additional clearances from 07 other bodies, including the Central Environmental Authority (CEA), the National Building Research Organization (NBRO), and the Colombo Municipal Council’s Drainage and Water Supply Unit.

It adds that the Prime Residencies, owned by the Prime Group’s Chairman – Premalal Brahmanage, has not yet officially applied for some required approvals.

‘Ada Derana’ points out that in this backdrop, promoting and securing deposits for an apartment complex that lacks final approvals is misleading, especially if any remaining permits are ultimately denied.

Concerns have also been raised over whether the existing Lake Drive road infrastructure can handle such a large development.

‘Sri Lanka Mirror’ also learns that the company’s much-promoted “5% payment scheme” for its projects has also come under scrutiny in this backdrop.

Prominent residents, including former Sri Lanka Cricket Secretary – Nishantha Ranatunga have voiced their concerns over the project.

The relevant video report of ‘Ada Derana’ is as follows :

BIZ

Visit of CII CEOs delegation to Colombo (Pics)

Published

3 days ago

July 5, 2025

editor

A CEOs delegation of the Confederation of Indian Industry (CII), led by Mr. Sanjiv Puri, Immediate Past President, CII and Chairman & Managing Director of ITC Limited, visited Colombo from 29 June to 02 July 2025.

The visit followed an invitation extended by the President of Sri Lanka during his State Visit to India in December 2024. The delegation comprised over 15 prominent Indian business leaders representing diverse sectors including hospitality, manufacturing, energy, healthcare, textiles, and tourism, among others.

During the visit, the CII delegation also called on the President and the Prime Minister of Sri Lanka. The leadership briefed the Indian business representatives on the constructive measures undertaken by the government to foster a supportive economic climate, promote investment, and ensure fair and transparent business practices.

In addition, the delegation held wide-ranging discussions with several senior Ministers and officials of the Government of Sri Lanka, including the Minister of Energy; Minister of Industry and Entrepreneurship Development; Minister of Labour and Deputy Minister of Economic Development; Minister of Trade, Commerce, Food Security and Cooperative Development; and the Chairman of the Board of Investment of Sri Lanka. These discussions explored avenues for investment-led collaboration and sector-specific partnerships.

A key highlight of the visit was a CEOs’ Roundtable organised by the High Commission of India on 30 June at ITC Ratnadipa, in collaboration with the Ceylon Chamber of Commerce (CCC). The CCC delegation was led by Mr. Krishan Balendra, Chairman and CEO of John Keells Group. The Roundtable witnessed in-depth deliberations on strengthening bilateral economic cooperation and identifying new opportunities for collaboration. High Commissioner of India to Sri Lanka – Mr. Santosh Jha also participated in the interaction.

To mark the occasion, the High Commissioner hosted a networking reception that brought together prominent business leaders, senior ministers, and political leaders. The event also witnessed the participation of leading trade and industry chambers from across Sri Lanka.

The visit of the CII CEOs delegation successfully identified various areas of mutual interest for forging further economic linkages and trade connections. It also highlighted the commitment of apex Indian chambers of commerce, such as CII, to deepening existing economic ties, promoting investment-led partnerships, and exploring new avenues for collaboration between India and Sri Lanka.

The delegation included :

Dr Nandini Rangaswamy – Chairperson, GRG Educational Institutions & Managing Director, Chandra Group of Companies
Dr S Chandrakumar – Founder & Executive Chairman Kauvery Group of Hospitals
Mr CK Ranganathan – Chairman & Managing Director CavinKare Pvt Ltd
Mr G R Anantapadmanaban – Managing Director GRT Group
Mr VKC Razak – Chairman, CII Kerala State Council & Managing Director of VKC Footgear Pvt. Ltd.
Mr Dipak Das – Managing Director Lanka IOC PLC
Mr Christo George – Convenor CII Kerala Manufacturing MSME & Export Panel, Chairman and Managing Director of Hykon India Limited
Mr Sohel Firoz Kazani – Founder and Managing Partner of Interport Impex Private Limited (Bharat Freight Group)
Mr Sunin Sunny – CEO of Ecospice Ingredients Pvt Ltd.
Mr Ravi Dolli – Member, CII Maharashtra Manufacturing Panel & CEO of Alloy Steels
Mr Rahul Nayak – Head of International Business TVS Motor Company
Ms Neerja Bhatia – Deputy Director General Confederation of Indian Industry
Mr Saikat Roy Chowdhury – Executive Director of International Confederation of Indian Industry
Mr Manish Mohan – Senior Director of International Confederation of Indian Industry