Hon. Nishantha Jayaweera

Deputy Minister of Economic Development Nishantha Jayaweera responded to a Member's claim that taxes had not been reduced, citing three specific tax relief measures implemented by the current government: raising the personal income tax threshold from LKR 1.2 million to LKR 1.8 million with adjusted initial tax bands; reducing VAT on essential items including milk and related products; and abolishing withholding tax on interest income for individuals not otherwise liable to tax. The Deputy Minister presented these measures as direct evidence countering the Member's assertion.

## Summary Deputy Minister Jayaweera presented six legislative instruments for approval, covering amendments to the Special Commodity Levy (SCL) on mandarin oranges (to comply with the Pakistan–Sri Lanka FTA), continued protection for domestic potato and onion farmers, SCL exemptions for Cyclone Michaung relief aid, a one-year extension of levies on 62 tariff lines, and a near-total reduction of the SCL on donated dates during Ramadan. He also highlighted 2025 economic performance figures, citing export earnings of USD 17.1 billion, tourism revenue of USD 3.1 billion, remittances of USD 8.1 billion, FDI exceeding USD 1 billion, and a current account surplus of approximately USD 1.7 billion. Responding to Opposition criticism, he rejected claims that the Government had promised to eliminate taxes, and announced forthcoming legal amendments to simplify the tax regime, including interest waivers for prompt income tax settlement, noting that all three major revenue departments exceeded their revised targets in 2025. He further defended the Government's Cyclone Michaung relief record, stating that LKR 72 billion had been allocated and that disbursement delays were attributable to documentation issues at the beneficiary level rather than any funding shortfall.

Deputy Minister of Economic Development Nishantha Jayaweera requested a two-week extension to provide a detailed answer to the matter before the House.

Deputy Minister of Economic Development Nishantha Jayaweera, speaking on behalf of the Minister, requested a two-week extension to provide answers to outstanding questions before the House.

## Summary Deputy Minister of Economic Development Nishantha Jayaweera presented, on behalf of the Chairman of the Ministerial Consultative Committee on Finance, Planning and Economic Development, the Committee's report covering two referred documents: the 2023 Annual Report of the Institute of Policy Studies of Sri Lanka and the 2023 Annual Performance Report of the Inland Revenue Department.

Hon. Nishantha Jayaweera acknowledged the first supplementary question as properly presented while declining to elaborate on the second. He stated that licences in question were irregularly issued by the previous Government to associates during an election period, and noted that a related case is currently before the courts. On that basis, he invoked sub judice convention to justify withholding further procedural details, clarifying that the legal concern centres on the timing and circumstances of the licence issuance rather than their inherent legality.

## Summary Deputy Minister Nishantha Jayaweera, responding on behalf of the Minister of Finance, Planning and Economic Development, provided detailed statistics on Sri Lanka's liquor licensing and excise duty framework. He reported that 1,428 new liquor licences were issued under Sri Lanka Tourism Development Authority (SLTDA) approval during 2025, across three licence categories covering hotels, restaurants, and on-premises beer and wine sales. He confirmed that 23 licensed distilleries and warehouses are currently operating, with supporting details placed in the Parliamentary Library. Excise duty on locally produced Special Arrack stands at Rs. 1,832 per 750ml bottle, with total liquor excise revenue for 2024 reaching approximately Rs. 213.39 billion, generated from sales exceeding 167 million bottles of locally produced arrack and foreign-style liquor across various bottle sizes.

## Summary Deputy Minister Nishantha Jayaweera spoke in support of the Microfinance and Credit Regulatory Authority Bill, arguing it is necessary to address predatory lending practices, particularly by app-based lenders who have trapped borrowers in debt through exorbitant interest rates and coercive collection methods involving personal data. He described a common scheme whereby lenders issue small initial loans, collect borrowers' contact information, subsequently deposit unsolicited larger sums, and then use threats to employers and family members to enforce repayment of inflated interest charges. The Bill proposes to bring unregulated microfinance institutions—excluding licensed banks (already regulated by the Central Bank), cooperatives registered under Provincial Statutes, Samurdhi community banks, and farmer organisations—under a single regulatory Authority, with requirements for written loan agreements, repayment capacity assessments, transparent interest rate disclosure, fair treatment of borrowers, and licensing obligations backed by penalties.