Economy

Sri Lanka among countries with lowest terror threats in the world

Published

4 months ago

March 13, 2025

Sri Lanka has been named one of the countries with the lowest terror threats in the world, according to the Global Terrorism Index (GTI) 2025.

The 12th annual GTI report, released on Wednesday (March 5), ranked Sri Lanka 100th among 163 countries considered in the index. However, with a GTI score of zero, Sri Lanka shares the lowest spot on the index with 63 other countries.

The report indicates that Sri Lanka has significantly improved, dropping 64 spots in the index within a year, thereby lowering the risk of terror threats within the island nation.

Meanwhile, Sri Lanka also shares the lowest terror threat ranking in the South Asian region with Bhutan.

In 2024, South Asia had the highest average GTI score, a position it has held for the past decade. Despite an overall deterioration in the region—driven primarily by Pakistan—terrorism has significantly declined compared to a decade ago, with all South Asian countries showing improvement.

The report attributes this improvement largely to a decline in terrorist activity in Afghanistan, Bangladesh, Nepal, and Sri Lanka. The region is home to two of the ten countries with the worst GTI scores: Afghanistan and Pakistan. Of the seven countries in South Asia, only Bhutan and Sri Lanka have a GTI score of zero, indicating that neither country has recorded a terrorist attack in the past five years.

The surge in terrorism in the region was primarily driven by Pakistan, where regional attacks increased from 726 to 1,399 and deaths rose from 961 to 1,303. Bangladesh and Pakistan were the only two countries in the region to record a deterioration in their scores in 2024. Consequently, Pakistan ranked as the second most terrorism-affected country globally for the second consecutive year, while India was ranked 14th.

Sri Lanka was the most improved South Asian country in 2024, having recorded no terrorist attacks or deaths for the fifth consecutive year since 2019. Nepal followed as the second most improved country, recording no attacks or deaths for the second consecutive year.

Meanwhile, the Sahel region remains the epicenter of terrorism, accounting for over half of all global terrorism-related deaths, according to the report.

The GTI is produced by the international think tank, the Institute for Economics & Peace (IEP), and has been published annually for the past 12 years. It is the most comprehensive resource on global terrorism trends, using multiple factors to calculate scores, including the number of incidents, fatalities, injuries, and hostage situations. These factors are combined with conflict and socioeconomic data to provide a holistic picture of terrorism worldwide.

Economy

Govt to impose 18% VAT on cross-border digital services provided via electronic platforms

Published

20 hours ago

July 8, 2025

admin

The government will introduce an 18% Value Added Tax (VAT) on digital services provided by non-resident companies to local consumers, effective October 1, 2025.

Accordingly, foreign service providers are required to register for VAT in Sri Lanka and collect the tax on their services.

The VAT law was updated through the VAT (Amendment) Act No. 4 of 2025, which implemented VAT on digital services.

The Inland Revenue Department has also published detailed guidelines through the Gazette Notification 2443/30, on this new digital tax.

Accordingly, the new VAT rules define terms such as “electronic platform” and “non-resident person,” and impose obligations on foreign digital service providers to charge and remit VAT on various services, including streaming, online gaming, and software as a service (SaaS).

Electronic marketplace facilitators may also be liable for VAT reporting on third-party sales.

According to the guidelines, the non-resident must first obtain a Tax Identification Number (TIN) before proceeding to acquire VAT registration. VAT registration is required only if the value of supply in the last 12 months exceeds Rs. 60 million per annum or Rs. 15 million in the last three months.

Non-compliance with registration requirements could also lead to penalties from the Inland Revenue Department, according to the new regulations.

With the enforcement of new regulations following services are likely to become liable to VAT collections:

E-commerce Services
Cloud Computing
Software as a service (SaaS)
Cybersecurity Services
Digital Marketing & Advertising
IT support & Managed Services
Streaming Services
Fin Tech
Subscription & Membership Website
E-commerce Platforms
Social Media Platforms
On Demand Service Platforms
Content Sharing Platforms
Cloud Collaboration Platforms
Market Place Platforms
Gaming Platforms
Blockchain & NFT Platforms
Apps for hotel bookings and ticket reservations

Economy

Sri Lanka Holds Lower-Middle Income Status in Latest World Bank Report

Published

2 days ago

July 7, 2025

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The World Bank has released its annual update on country income classifications, reaffirming Sri Lanka’s status as a lower-middle-income economy for the fiscal year 2026.

The classification is based on Gross National Income (GNI) per capita for the previous year, calculated using the Atlas method, which smooths exchange rate fluctuations to provide a more stable measure of economic capacity.

Sri Lanka’s retention in the lower-middle-income bracket reflects a complex economic recovery path following recent fiscal challenges, inflationary pressures, and structural reforms.

While the country has shown signs of stabilization, its GNI per capita remains below the threshold required to move into the upper-middle-income category.

Understanding the World Bank’s Classification System:

Each year on July 1, the World Bank classifies economies into four income groups:

– Low-income: GNI per capita of $1,135 or less

– Lower-middle-income: $1,136 to $4,465

– Upper-middle-income: $4,466 to $13,845

– High-income: $13,846 or more

These thresholds are adjusted annually for inflation using the Special Drawing Rights (SDR) deflator.

Economy

Sri Lanka’s exports surge to US$ 6.9 Bn in first five months of 2025

Published

2 weeks ago

June 27, 2025

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Sri Lanka’s export sector demonstrated remarkable resilience and steady progress during the first five months of 2025, with total exports reaching US$6,933.35 million, marking a robust 7.14% growth compared to the same period in 2024.

According to the Export Development Board (EDB), total exports, including both merchandise and services, reached US$1,386.66 million in May 2025. This shows an impressive year-on-year growth of 6.35% over May 2024, reflecting the resilience of Sri Lanka’s export sector and the positive impact of strategic efforts to diversify markets and enhance competitiveness.

In May 2025 alone, merchandise exports grew by 1.70 % year-on-year, reaching US$1,028.52 million, according to provisional data of Sri Lanka Customs, including the estimates for Gems & Jewellery and Petroleum Products. For the period January to May 2025, merchandise exports totalled US$5,344.23 million, reflecting a 5.46% increase compared to the same period in 2024.

Meanwhile, services exports have emerged as a key driver of overall export growth. In May 2025, earnings from services exports were estimated to be US$358.14 million. Over the first five months of the year, services exports are estimated to have increased by 13.20%, totalling US$1,589.12 million. This trend highlights the rising importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings.

The services export sector, comprising ICT/BPM, Construction, Financial services, and Transport & Logistics, continues to diversify Sri Lanka’s export portfolio and create high-value employment opportunities across the Island.