SenFin Research – News Updates – 28 June 2026

SenFin Research – News Updates – 28 June 2026

VAT threshold u-turn
In a dramatic about-turn that has left businesses, tax professionals, and consumers alike scrambling to keep up, Sri Lanka’s tax landscape has witnessed one of the most unusual policy reversals in recent memory.
Source: (Sunday Observer) https://www.sundayobserver.lk/2026/06/28/business/79962/vat-threshold-u-turn/

Govt calls for strong fiscal discipline ahead
The Government has identified a range of structural fiscal pressures that are expected to place sustained demands on public finances from 2027 onwards, and continued fiscal discipline will be essential to safeguard debt sustainability and preserve the country’s economic recovery.
Source: (Sunday Observer) https://www.sundayobserver.lk/2026/06/28/business/79950/govt-calls-for-strong-fiscal-discipline-ahead/

IMF draws red lines for Lanka’s recovery
Sri Lanka is compelled to maintain its schedule on finalised debt restructuring payments and avoid slipping into new external payment defaults although the economic reform outlook has been complicated by the West Asian conflict and Cyclone Ditwah.
Source: (Sunday Observer) https://www.sundaytimes.lk/260628/business-times/imf-draws-red-lines-for-lankas-recovery-647139.html

President commits to replacing PTA ahead of EU trade review
Sri Lanka is heading for the next review of its GSP + trading concessions from the European Union (EU) and this time the apparel industry believes the repeal or replacement of the Prevention of Terrorism Act (PTA) will be a deal breaker.
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/president-commits-to-replacing-pta-ahead-of-eu-trade-review-647145.html

Dollar eases on remittance flows
The US dollar eased to Rs. 336-337 (per dollar) on Friday owing to an inflow of migrant worker remittances, dealers said. “While the dollar rose to Rs. 337 on Thursday, there was less pressure (the next day) and the dollar eased on Friday as usual flows (on a Friday) by migrant workers were seen in the market),” one dealer said
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/dollar-eases-on-remittance-flows-647142.html

Not all FDIs inject dollars to Lanka’s economy
The Board of Investment’s (BOI) annual release of investments data are listed in dollar terms although local investments made in rupees are also converted to quote a number that does not reflect the actual dollar inflows through investments to the country.
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/not-all-fdis-inject-dollars-to-lankas-economy-647151.html

The 60-million-rupee question
Imagine walking into a supermarket to buy household essentials that are subject to VAT. You spend Rs. 10,000 on your purchases. The supermarket, a large scale enterprise with annual turnover above Rs. 60 million, is VAT registered, so your purchases fall within the scope of VAT liable transactions
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/the-60-million-rupee-question-647130.html

Auditing the auditors!
Ethics, governance, transparency, accuracy, accountability and add – sustainability: you are looking at some of the new buzz words claimed by most businesses as they profess a cleaner and more honest engagement with the public-at-large.
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/auditing-the-auditors-647135.html

ADB approves new solar power funding for Sri Lanka
The Asian Development Bank (ADB) has approved a US$57.4 million financing package to help Sri Lanka expand access to affordable clean energy and reduce greenhouse gas emissions through rooftop solar aggregation and virtual net metering.
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/adb-approves-new-solar-power-funding-for-sri-lanka-647056.html

NCE warns bottlenecks could hamper Sri Lanka’s export goals
Sri Lankan exporters, as the country pursues an ambitious target of US$36 billion in export earnings by 2030, are urging authorities to address a series of long-standing regulatory, operational and policy issues that affect competitiveness across several sectors identified as priorities for the country’s export growth agenda.
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/nce-warns-bottlenecks-could-hamper-sri-lankas-export-goals-647087.html

SL apparel exports, led by US demand, rose by 8% in May
Sri Lanka’s apparel and textile exports, helped by US demand, grew by nearly 8 per cent in May 2026 to US$394.14 million, the industry’s best single-month performance so far this year and a sign that demand from key markets is beginning to firm up after a difficult start to the year.
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/sl-apparel-exports-led-by-us-demand-rose-by-8-in-may-647104.html

SL medical inflation rising faster than general inflation
Sri Lanka is witnessing a major challenge with medical inflation, which is rising faster than general inflation despite the country’s progress in steadying its economy.
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/sl-medical-inflation-rising-faster-than-general-inflation-647114.html

SDF reports strong FY2025/26
Sarvodaya Development Finance PLC (SDF) says during 2025/26, it recorded significant growth in income, profitability, portfolio expansion, and asset quality while continuing its commitment to responsible and inclusive finance.
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/sdf-reports-strong-fy202526-647065.html

Teejay Group post-tax profit slumps in 2025/2026
The Teejay Group’s Profit After Tax (PAT) for the financial year 2025/26 fell sharply to Rs.54.7 million, representing a 98 per cent year-on-year decline.
Source: (Sunday Times) https://www.sundaytimes.lk/260628/business-times/teejay-group-post-tax-profit-slumps-in-20252026-647076.html