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.
China remains one of Sri Lanka’s largest economic partners, with growing trade relationships, tempered by project delays and IMF-driven investment reforms. What lies ahead for Sri Lanka–China relations in this evolving economic and geopolitical landscape? Explore the latest insights in the sixth edition of the Sri Lanka–China Economic Brief!
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…
By Rojie Ekanayake Rojie Ekanayake explores the potential of Bus Rapid Transit (BRT) systems in addressing the long-standing issues in Sri Lanka’s public bus network, namely, poor safety, accessibility and comfort. Drawing on experiences from India and Pakistan, she highlights how BRTs, though promising faster and more efficient travel, can succeed only through careful planning…