Economy

Sri Lanka targets another US$4.1 billion in Port City Colombo investments

Published

3 weeks ago

August 23, 2026

Sri Lanka is targeting a further US$4.1 billion in investments to the Port City Colombo over the next five years, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said.

In a social media statement, Abeysinghe said investments worth US$2.1 billion have already been confirmed for the Port City, as the government seeks to position the special economic zone as a major regional investment destination.

He said the Port City was presented as a key investment opportunity at an Australian investment summit held last week.

Among the international companies identified by the Deputy Minister as having investments or operations linked to the Port City are Horizon Group USA for a global shared services centre, Ansell for global operations, IGT1 for BPO and BPM services, KPMG for offshore professional services and GAC Services for logistics back-office services.

Abeysinghe said the government had also revised what he described as excessive tax concessions previously offered to Port City investors, seeking to bring the incentive framework closer to international standards without reducing its competitiveness.

Under the revised framework, primary Businesses of Strategic Importance can qualify for corporate income tax holidays based on investment criteria, while secondary businesses are eligible for a concessionary corporate income tax rate of 7.5% for four years. The revised framework introduced in 2025 provides primary businesses with tax holidays of up to 15 years.

Economy

Sri Lanka Sees 27.2% Jump in State Income in First Half of 2026

Published

2 days ago

September 11, 2026

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Prime Minister Dr. Harini Amarasuriya outlined in Parliament the significant increase in government revenue recorded during the first six months of 2026, highlighting strong growth in both tax and non-tax income.

The Prime Minister stated that tax revenue, which stood at Rs. 2,152.1 billion during the first six months of 2025, increased by 25.9% to Rs. 2,710.6 billion during the corresponding period of 2026.

She further noted that revenue collected by the Inland Revenue Department rose from Rs. 1,037.9 billion in the first half of 2025 to Rs. 1,247.6 billion during the same period in 2026, reflecting a growth of 20.2%.

According to the Prime Minister, non-tax revenue also recorded a substantial increase. Revenue from non-tax sources rose from Rs. 169.6 billion during the first six months of 2025 to Rs. 243.6 billion during the corresponding period this year, marking a significant growth of 43.6%.

As a result, total tax and non-tax revenue increased from Rs. 2,321.7 billion in the first half of 2025 to Rs. 2,954.2 billion during the same period of 2026, representing an overall growth of 27.2%.

Dr. Amarasuriya explained that the increase in revenue collected by the Inland Revenue Department, Sri Lanka Customs, and the Excise Department had been the primary drivers behind the rise in overall government revenue.

Economy

Vehicle imports generate Rs. 512.5 billion in tax revenue

Published

5 days ago

September 8, 2026

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Sri Lanka imported 316,000 vehicles during the first six months of 2026, generating Rs. 512.547 billion in tax revenue, according to officials from Sri Lanka Customs.

The figures were revealed during a review of the operations and revenue performance of Sri Lanka Customs by the Parliamentary Committee on Ways and Means.

Of the total tax revenue generated through vehicle imports, motor vehicles imports accounted for the largest share, contributing Rs. 386.726 billion.

Petrol-powered cars with engine capacities below 1,000cc emerged as the highest revenue-generating category, contributing Rs. 137.4 billion in Customs revenue. This represented 9.96% of total Customs revenue.

Meanwhile, Sri Lanka Customs recorded total revenue of Rs. 1.379 trillion by June 30, 2026, against an expected revenue of Rs. 1.061 trillion for the period, representing 130% of the targeted revenue.

Officials informed the committee that customs revenue had exceeded monthly targets throughout the year and had recorded higher revenue compared with the corresponding months of 2025.

Economy

Rs. 5.8bn World Bank-backed project to rehabilitate 296 irrigation tanks

Published

7 days ago

September 6, 2026

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Sri Lanka has begun rehabilitating 296 minor irrigation tanks under a World Bank-funded programme aimed at strengthening irrigation infrastructure and improving climate resilience.

More than Rs. 5.8 billion has been allocated for the work under the Integrated Rurban Development and Climate Resilience Project (IRDCRP), which is planned to continue until 2029.

Of the 296 tanks, 290 are located across 18 districts and were damaged by Cyclone Ditwah. About Rs. 5.58 billion has been allocated for their rehabilitation under the project’s Contingent Emergency Response Component.

The largest number of affected tanks is in Badulla, where 97 are being rehabilitated, followed by Ratnapura with 29, Mannar with 24 and Kurunegala with 19. Fifteen tanks each are being rehabilitated in Kandy and Vavuniya.

A further six minor irrigation tanks in Polonnaruwa, Hambantota and Jaffna are also being rehabilitated at a cost of about Rs. 256.2 million.