China continues to play a pivotal role in Sri Lanka’s economic landscape as its largest bilateral creditor and a leading trade partner, amid shifting trade dynamics and completed debt restructuring. Following the default, Chinese engagement has shifted from debt-financed projects to equity-based FDI and private sector partnerships. Explore this evolving dynamic in the Sri Lanka…
The government’s Budget 2026 proposal to subsidise part of plantation worker wages raises questions on fairness, employer responsibility and accountability. Arutha’s latest brief analyses the impact and practicality of this proposal.
Signals a mismatch between announced policy and revenue projections.
Prices should have reduced by 15%, but in reality only reduced by 6%
Speaking at Arutha’s inaugural conference, Debt & Tax Dialogue, Umesh Moramudali highlighted a major shift in how Sri Lanka handles development projects, moving away from costly, non-transparent deals toward competitive, accountable procurement. This change is also reflected in how Chinese state-owned enterprises (SOEs) now operate in Sri Lanka. Instead of debt-heavy agreements, Chinese SOEs are…
In this issue, we unpack the Simplified VAT (SVAT) system and explore the new risk-based refund scheme.
Arutha hosted its inaugural conference, The Debt & Tax Dialogue, on 03 September 2025 at the Courtyard by Marriott. The conference brought together leading economists, policymakers, media, and civil society voices to examine the relationship between debt, taxation, and Sri Lanka’s economic future. The conference opened with remarks from the Minister of Labour and Deputy…
Arutha hosted a virtual event to mark the launch of our newest platform, Debt.lk on 12 July 2025. This platform brings together data and information on Sri Lanka’s external debt from a range of sources for easy access and clarity. It includes information on who the lenders are, how much has been borrowed, and where…
By Rehana Thowfeek Sri Lanka’s current Value Added Tax (VAT) framework has not kept pace with the growing volume of cross-border digital transactions. In response, the government is now moving forward with a proposal to extend the standard VAT rate of 18% to digital services provided from abroad to consumers in Sri Lanka. Arutha’s…