Deputy Minister of Finance Anil Jayantha Fernando today dismissed as “completely incorrect and misleading” claims that the European Union’s GSP+ trade concession to Sri Lanka has been suspended.

Responding to MP Harshana Rajakaruna in Parliament, Fernando clarified that the GSP+ scheme remains fully effective until 31 December 2028. 

He noted that under the updated framework, the number of required international conventions has increased from 27 to 32, but Sri Lanka continues to benefit from preferential market access.

The Deputy Minister further said the Cabinet has appointed a committee to examine preferential market access under the GSP+ scheme.

He added that a separate committee has been tasked with preparing a new application to ensure continuity beyond 2028. (Newswire)

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Deputy Minister of Finance and Planning Anil Jayantha Fernando yesterday rejected claims that Sri Lanka’s Government debt had risen by more than Rs. 190 billion, stressing that such reports were based on misinterpretations rather than verified official data.

Responding to recent media coverage that cited Central Bank figures, Fernando said the reports had failed to explain the basis for the alleged increase and had quoted figures inaccurately. 

He emphasised that the country’s debt position must be assessed using the quarterly Debt Bulletin, which provides a detailed breakdown of domestic and foreign borrowings, including loans from bilateral and multilateral partners, individual countries, and commercial sources.

Fernando underscored the importance of consulting official records before making claims about debt trends, noting that debt statistics can vary depending on whether they are presented in rupees or in dollar terms. 

He pointed out that in dollar terms, Sri Lanka’s debt stock has shown a clear decline in recent quarters, reflecting improved fiscal management.

Highlighting the broader context, the Deputy Minister said borrowing in itself should not be viewed negatively if debt sustainability is maintained and funds are channelled into productive development. 

He noted that Sri Lanka’s debt‑to‑GDP ratio had fallen to 95% by the end of 2025, a milestone initially projected for 2032, and further declined to 88.8% by mid‑2026.

“This reduction demonstrates stronger management of public finances and reinforces confidence in the Government’s ability to meet its repayment obligations,” he said, adding that there was no uncertainty regarding the servicing of loans.

Fernando reiterated that misleading claims risk undermining public confidence and urged media outlets to rely on verified official data when reporting on debt. (Newswire)

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The Ministry of Labour has condemned false propaganda circulating on social media, which alleges that the Labour Minister and Deputy Minister of Finance and Planning Dr. Anil Jayantha Prananthu had moved to ban religious pilgrimages to Dambadiva and Thailand.

The Ministry clarified that the claim is entirely fabricated and stressed that no such statement was ever made by the Minister. 

Issuing a statement, the ministry said the false report appears to be spread by groups with narrow political motives, attempting to undermine Sri Lanka’s social, political, and religious coexistence.

“We express our regret and strong condemnation regarding such low‑level false propaganda,” the Ministry noted in its statement. (Newswire)

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Sri Lanka plans to tighten customs screening to better identify imported goods made with forced labour and to implement international labour standards in a bid to avoid new U.S. tariffs on its exports, according to a report by Reuters.

Deputy Minister of Finance Anil Jayantha Fernando told Reuters that Sri Lanka already has strong labour practices and a legal framework in place, but will take further measures to eliminate concerns over child labour and forced labour. 

He said the country will adopt the International Labour Organisation’s C190 convention, ratified in April, which recognises the universal right to work free from violence and harassment.

The U.S. is Sri Lanka’s largest export market, accounting for about $3 billion in mostly apparel shipments. The apparel industry, which employs around 300,000 workers, reported $5 billion in exports last year, though shipments dipped 7.4% to $1.53 billion in the first four months of this year.

Sri Lanka is among 60 economies facing proposed new U.S. tariffs of up to 12.5% that could take effect next month.

Under the measures announced by the Office of the United States Trade Representative (USTR), Sri Lanka would face a 12.5% duty, higher than competitors such as Bangladesh and Pakistan, which fall under the 10% rate. A special textile mechanism has also been proposed to allow limited apparel and textile imports at reduced tariff rates.

The USTR has cited failures by 54 economies to impose prohibitions on forced labour imports, while six others, including Canada, Mexico, Pakistan, Indonesia, Ecuador, and the EU, were found to have failed to enforce existing regimes. 

U.S. Trade Representative Jamieson Greer said such failures “create a dynamic where American workers are forced to compete globally on an uneven playing field,” adding that Washington “will no longer tolerate this disparity.”

Public hearings on the proposed tariffs are scheduled for July 7, with written comments due by July 6 and requests to appear at hearings by June 22. 

Fernando said talks with the Office of the United States Trade Representative are ongoing, though Sri Lanka does not yet plan to send a delegation to Washington. (Newswire)

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Deputy Finance Minister Anil Jayantha Fernando has refuted social media reports claiming that he rejected a proposed USD 23 million donation linked to associates of Sri Lankan artist Sangeeth Wijesuriya, citing IMF programme restrictions.

Speaking during a televised interview, Fernando stressed that the statements attributed to him were “completely incorrect” and misleading. 

He clarified that he had not met artist Sangeeth Wijesuriya or his associates regarding the matter, nor had he made any remarks about such donations.

Fernando explained that while he had encountered Wijesuriya during past election campaign rallies, they had not met since. 

“We see on social media even statements we have not made being shared and circulated. Sometimes it is things we have not done and some are wrong statements. I have not said anything related to this,” he said.

The Deputy Minister pointed out that the true situation must be clarified directly with Sangeeth Wijesuriya, adding that misinformation online had distorted the issue. 

He reiterated that the claim linking him to the alleged rejection of funds was baseless. (Newswire)

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The three‑month fuel concession plan introduced by the government will conclude at the end of June, with a fresh decision to be taken based on the prevailing situation at that time, Deputy Minister of Finance Anil Jayantha Fernando said.

Speaking during a televised interview, he explained that the plan was designed for three months, during which officials monitored global price hikes, their impact on local pricing, and the burden on the public. 

“These concessions will end at the end of three months. But, after three months, if we face an unexpected situation, we are prepared to face it and collect the necessary funds,” Fernando noted.

The Deputy Minister revealed that as of June 8, revenue collection had exceeded targets, reaching 120%.  “As such we have the opportunity to face and manage certain unexpected situations,” he added.

Fernando further said that while the current concession will lapse at the end of June, the government remains prepared to respond to unforeseen developments, with decisions on future relief to be taken in line with the circumstances at the time. (Newswire)

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Sri Lanka’s Treasury has received a tranche of USD 695 million following the successful completion of the 5th and 6th reviews of the International Monetary Fund (IMF) programme, Deputy Minister of Finance Anil Jayantha Fernando confirmed.

The IMF Executive Board approved the reviews at its meeting held on May 27. With the latest tranche, total IMF financial support disbursed to Sri Lanka under the programme has reached approximately US$2.4 billion.

In a recent statement announcing the approval for the disbursement of funds, the IMF said Sri Lanka’s performance under the reform programme remained “generally strong”, despite global and domestic challenges, including the war in the Middle East and the aftermath of Cyclone Ditwah.

The IMF noted that Sri Lanka had met all end-December 2025 quantitative performance criteria, while most structural benchmarks had either been achieved or implemented with delays.

The fund also confirmed that prior actions related to restoring fuel and electricity cost-recovery pricing had been completed.

The IMF projects Sri Lanka’s economic growth to slow to 3% in 2026, down from 5% in 2025, mainly due to global uncertainties and rising oil prices linked to the Middle East conflict.

Inflation is expected to rise to 5% in 2026, while the current account balance is projected to return to a deficit.

The IMF said fiscal easing in 2026 was appropriate in response to economic shocks, including recovery spending following Cyclone Ditwah, but stressed that Sri Lanka must return to its fiscal targets from 2027 onwards. (Newswire)

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Deputy Minister of Finance Anil Jayantha Fernando told Parliament today (21) that Sri Lanka is expecting a significant inflow of foreign funds from the International Monetary Fund (IMF) by May 27.

“We are largely expecting from the International Monetary Fund on the 27th of this month. The Board of Directors will give us USD 700 million,” he said.

The Deputy Minister explained that in addition to exports and foreign remittances, external financing from multilateral agencies would strengthen the country’s reserves.

“From the Asian Development Bank, within this year, there is the possibility of obtaining up to USD 480 million. From the World Bank, USD 150 million, and from another affiliated institution, USD 50 million,” he noted.

Deputy Minister Fernando stressed that these inflows would ease concerns over foreign exchange management.

“Therefore, there will be no problem in managing this,” he assured.

The IMF disbursement, expected on May 27, is part of Sri Lanka’s ongoing programme to stabilize its economy and strengthen external financing. (Newswire)

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Deputy Minister of Finance Anil Jayantha Fernando has dismissed opposition allegations that Letters of Credit (LCs) were opened for 4,000 vehicles on May 15, the day before a surcharge on vehicle imports was imposed.

Speaking during a televised interview, Fernando clarified that the actual number was far lower.

“The claim that 4,000 vehicles had LCs opened is a baseless lie. The actual number is 1,782,” he said.

According to the Deputy Minister, 380 LCs were opened on May 15, covering 1,782 vehicles valued at USD 23.71 million. 

He stressed that opposition figures were exaggerated, misleading, and completely false.

“By claiming such high figures, they are attempting to mislead the public by creating an illusion that there were issues in the country. The public also falls victim to such claims and ends up carrying out unnecessary purchases and measures, causing them loss. I request the public not to believe unverified statements on social media,” he said. 

The Deputy Minister dismissed the Opposition’s claims, urging the public not to fall victim to false news, especially circulated on social media. (Newswire)

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Deputy Finance Minister Anil Jayantha Fernando told Parliament today (19) that the recent depreciation pressure on the Sri Lankan Rupee was largely driven by global uncertainty, geopolitical tensions in the Middle East, rising oil prices and increased demand for the US Dollar.

Responding to concerns raised by Opposition Leader Sajith Premadasa on the continued weakening of the Rupee, Anil Jayantha said the currency had faced pressure amid external shocks and market behaviour.

He said that as of May 18, 2026, the Rupee had depreciated by around 4.8% against the US Dollar, but argued that the decline remained comparatively lower than that of several countries in the region.

The Deputy Minister said the strengthening of the US Dollar due to Middle East tensions, investors shifting towards safer assets, rising crude oil prices, and uncertainty in global financial markets had all contributed to the pressure on the Rupee.

He further said the escalation of Middle East conflicts had affected Sri Lanka’s tourism sector due to disruptions at key regional aviation hubs, while importer demand for foreign exchange and market speculation had also added pressure.

Anil Jayantha noted that exporters delaying the conversion of export earnings and importers increasing foreign exchange purchases in anticipation of further depreciation had contributed to market pressures.

He also said the Central Bank does not target a fixed exchange rate and currently follows a flexible exchange rate policy, where rates are determined by market demand and supply.

“The current movement should not be viewed as an unusual volatility situation. Exchange rate fluctuations can have both advantages and disadvantages,” he said. (Newswire)

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Sri Lanka will continue to enforce the QR code system for fuel distribution as part of measures to manage consumption, Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando told Parliament today.

He noted that restrictions on fuel supplies were introduced in mid‑March 2026 in response to the ongoing Middle East conflict, and the QR system was implemented to regulate access. 

“It will continue further, with the aim of managing and reducing fuel consumption,” Fernando said.

The Deputy Minister made the remarks in response to a question raised by Opposition Leader Sajith Premadasa. (Newswire)

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Deputy Minister of Finance Anil Jayantha Fernando assured today that the Rebuilding Sri Lanka Fund remains safe and protected.

Addressing the media today, he said that all expenditures related to the Fund are subject to parliamentary approval and existing legal limitations.

The Deputy Finance Minister revealed that as of April 24, 2026, a total of Rs. 9,583 million has been deposited into the fund.

“Contributions have been received from 49 countries, comprising both Sri Lankan and foreign donors, with some donations made in foreign exchange but credited in Sri Lankan Rupees,” he said. 

Anil Jayantha Fernando further said that while Rs. 500 billion has been allocated through a supplementary estimate to address post-Ditwah response in 2025; a large portion of these funds is yet to be utilized. 

He noted that the government will carefully consider how best to deploy the funds for approved programmes that benefit the public. 

“There need not be any fear. The money remains safe in the Rebuilding Sri Lanka Fund account,” he told reporters.

The ‘Rebuilding Sri Lanka’ Fund was established by the government to support those affected by Cyclone Ditwah. (Newswire)

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Deputy Minister of Finance and Planning, Anil Jayantha Fernando, says Sri Lanka expects its economy to expand by more than 5% next year.

In an exclusive interview with Reuters, Deputy Minister Fernando said the figure will match this year’s pace and significantly outstrip IMF projections, partly driven by reconstruction efforts following Cyclone Ditwah.

The storm hit in late November, killing nearly 650 people and affecting about 10% of Sri Lanka’s 22 million population. It caused major damage to infrastructure, farms, and tea estates, with rebuilding costs estimated at up to $7 billion in a country still recovering from economic collapse in 2022.

Sri Lanka has been receiving funds under an IMF bailout programme, while additional emergency assistance has been pledged by global agencies and foreign governments for it to cope with its worst natural disaster since the 2004 tsunami.

Deputy Minister Anil Jayantha Fernando said this month, the Asian Development Bank committed $200 million for the country and the World Bank $120 million. The IMF is expected to approve Sri Lanka’s request for emergency funding of $200 million on Friday.

“So with the quick response, support from agencies and the existing development programmes, I don’t think that (growth) would be really hampered,” he told Reuters.

“Rather, it would increase; maybe new investments come for reconstruction, the repair of these infrastructures and all those things. In a way, even from a technical perspective, it will not slow down; it will further go up.”

He said growth this year would be more than 5%, higher than the central bank’s 4.5% projection, based on numbers in the first three quarters of the year. He expects similar growth next year too. The IMF has predicted 3.5% in 2025 and 3.1% next year.

To repair damaged homes, restore infrastructure such as roads and railways, and rebuild livelihoods, Fernando said the government would divert funds from other areas, utilise tax revenue and seek more international support.

‘SINOPEC DEAL ALMOST FINALISED’

He said parliament is expected to approve 500 billion rupees ($1.6 billion) in supplementary spending, funded partly through the reallocation of ministry budgets, when it convenes on Friday and Saturday.

Additionally, 1.4 trillion rupees ($4.6 billion) have been earmarked for capital expenditure in 2026, partly to support post-cyclone reconstruction efforts.

The government also plans to host a donor conference in mid-January to secure further funding, as damage assessments from the cyclone continue.

Foreign investment will play a key role in the recovery, he said.

Colombo is set to finalise an agreement with Chinese state energy giant Sinopec for a $3.4 billion refinery in the next two months and introduce legislation to spur investment linked to a $1.4 billion China-backed Port City project off the Colombo coast, Fernando said.

“With regard to Sinopec, almost that is finalised,” he said. “So we hope we will be able to sign this agreement and commence this project either at the end of this month or maybe early next year.”

Sinopec did not immediately respond to an email seeking comment.

The planned refinery, approved in 2023, will have the capacity to process 200,000 barrels of crude oil per day and will be located near the Chinese-built and operated Hambantota port in southern Sri Lanka. It faced delays mainly over the company’s long-standing demand to sell more fuel locally, a condition the energy minister has said the government is considering. (Newswire/Reuters)

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The Ministry of Labour has announced plans to amend the existing laws on the employment of female workers at night as part of a wider labour law reform initiative.

Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando said attention has been given to introducing four key bills under the proposed reforms. He made these remarks during the Ministerial Consultative Committee on Labour Affairs held recently (08).

According to the Ministry Secretary, a 17-member committee has been appointed to review 14 current labour laws and draft four principal labour-related bills covering trade unions, labour, occupational safety, and termination of employment.

As part of this process, amendments will be made to the Women Working at Night law, the Labour Protection law, and provisions related to insurance in the event of termination of employment. Officials said these changes aim to modernize regulations and strengthen worker protection until new legislation is introduced.

The Ministry also said that a national policy on occupational safety and health has reached its final stage, and that the Labour Department’s database is being upgraded under the government’s digitalization program to ensure immediate worker registration.

Deputy Minister Anil Jayantha Fernando noted that the draft reforms will be developed after detailed consultations with all relevant stakeholders, including trade unions. (Newswire)

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Deputy Minister of Economic Development, Anil Jayantha Fernando, says a new category for Customs duties has been proposed for electric vehicles that use fuel-powered motors. 

Anil Jayantha Fernando disclosed information in this regard while tabling the relevant proposal in Parliament for approval. 

Addressing Parliament yesterday, the Deputy Minister said that currently, Sri Lanka allows the import of Diesel and Petrol vehicles, Hybrid-Diesel and Hybrid-Petrol vehicles, and electric vehicles. 

He said, however, currently a new type of vehicle, electric vehicles that use fuel-powered motors, have also begun being imported in Sri Lanka. 

“This new type of vehicle does not fall under the existing Customs duties. A new HS code has to be created when importing these vehicles to ensure the proper imposition of tax duties. Investigations have found the need to introduce new regulations. This is because, under the existing regulations, higher taxes were being paid for this type of electric vehicle,” he explained. 

Deputy Minister Anil Jayantha Fernando said, as such, a Cabinet-approved committee was appointed for this purpose, and a new category was introduced for the new type of electric vehicle that uses fuel-powered motors.

“This new type of vehicle has been categorised between electric and hybrid vehicles. They are not purely electric or purely hybrid. So, the Cabinet committee decided that taxes must be imposed, taking into consideration it as a vehicle between electric and hybrid,” he said.

The Deputy Minister went on to note that due to the said vehicle not having a category before, higher taxes were being paid, pointing out that it has been proposed to impose lower taxes for low-cost vehicles and higher taxes for luxury vehicles. 

Anil Jayantha Fernando further said that it has also been proposed that a luxury tax must be included for these vehicles.

“The luxury tax at present is 60% if the CIF value is above Rs. 06 million for an electric vehicle. It has been proposed that the same be imposed for the new electric vehicles that use fuel-powered motors,” he said. 

The Deputy Minister of Economic Development emphasized that the new system is designed to reduce tax burdens for lower-cost vehicles, impose higher taxes on luxury models, and ensure fair and practical categorization for modern vehicle types. (Newswire)

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Minister of Labour and Deputy Minister of Economic Development Anil Jayantha addressed concerns surrounding a large consignment of BYD electric vehicles currently detained by Sri Lanka Customs over discrepancies in declared motor capacity.

Approximately 1,000 BYD vehicles, shipped in several consignments, were held after concerns had been raised that vehicles declared with a 100-kilowatt (kW) motor capacity may in fact be equipped with 150 kW motors. The motor capacity is a key factor in determining the applicable import duty rate in Sri Lanka. 

Speaking during a televised interview, Jayantha said a group of used vehicle importers initially raised concerns about inconsistencies in documentation. “They pointed out that when importing used vehicles, their documents had to state the motor capacity as 150 kW, which incurs a higher tax. However, these brand new vehicles have been imported with documents declaring 100 kW,” he said.

Jayantha said that both sets of documents were presented to him and subsequently discussed with Customs officials.

When asked about allegations that vehicles with 150 kW capacity were imported using documents declaring only 100 kW—and that the motor output may have been limited to 100 kW via software—Jayantha said investigations are ongoing. He noted that the Sri Lankan Gazette mandates taxes to be calculated based on the vehicle’s motor capacity, not its output.

“There are now questions as to whether the documents were forged to show a downgrade, or if software was used to reduce output,” he said. “Whatever the case, Customs will carry out a verification process to determine the actual motor capacity.”

Responding to concerns about customers who have already placed orders for the detained vehicles, Jayantha said that in some cases, it may be possible to recover funds through bank guarantees if fault is established. However, he noted uncertainty about whether the importing company would be willing to provide such guarantees on behalf of end users.

Regarding potential tax evasion involving previously released vehicles imported under similar conditions, Jayantha said Customs has provisions to audit past imports. He added that any penalties or unpaid taxes should be the responsibility of the importer, not the consumer. (Newswire)

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Deputy Minister of Economic Development, Anil Jayantha Fernando, says the United States has offered 0% tariff on certain exports from Sri Lanka.

Speaking during a televised interview, Anil Jayantha Fernando said negotiations are underway, with the United States offering Sri Lanka a number of export items that would qualify for zero per cent tariffs.

“Out of these 1,161 items for export, 42 are agricultural products. The list includes all types of apparel. For about 70% to 80% of these items, they’ve expressed agreement to offer us a 0% tariff. That’s why we’re not revealing everything yet, because the agreement isn’t finalized. But once exports begin, they’ll be subject to 0% duty,” he said. 

When inquired about the details of the exempted items, the Deputy Minister said that a ‘non-disclosure exclusivity’ has been signed, which prevents points discussed from being disclosed if a final agreement is yet to be reached.

He further revealed that the offer has been made during ongoing discussions between Sri Lanka and the US on the reciprocal tariffs imposed on Sri Lanka by US President Donald Trump.

Having initially imposed a 44% tariff on Sri Lanka, the US recently revised it to 30% tariffs, expected to come into effect from 01 August this year.

Sri Lankan authorities are currently engaged in discussions with the US authorities to further reduce the revised tariffs. (Newswire)

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Deputy Minister of Economic Development, Anil Jayantha Fernando, says Sri Lanka intends to continue discussions with the US authorities until the 01 August deadline to further reduce the revised trade tariffs. 

Briefing the Parliament on the current situation, Anil Jayantha Fernando said that the United States has sent courtesy letters stating that the revised trade tariffs will come into effect from 01 August.

He further said that in its courtesy letter, the US government says that a 30% tax will be levied on Sri Lankan exports if Sri Lanka fails to enter into a bilateral trade agreement before August 1.

“Sri Lanka is one country that has received this letter. Among the letters sent to 25 countries, Sri Lanka is the nation that has received the highest concession. We intend to continue talks until the 1st August deadline and attempt to further reduce the tariffs,” he said. 

Anil Jayantha Fernando further revealed that upon the initial imposition of trade tariffs by the US, Sri Lanka immediately appointed a committee and commenced negotiations with the US authorities. 

“On two occasions, Sri Lankan delegations visited the US for direct talks with the US Trade Office officials. The reduction from 44% to 30% trade tariffs is an outcome of these negotiations,” he said.

Deputy Minister of Economic Development, Anil Jayantha Fernando, added that Sri Lanka will continue discussions with the US authorities to facilitate a further reduction of the imposed trade tariffs. (Newswire)

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Deputy Minister of Economic Development, Anil Jayantha Fernando, says news reports claiming that the Treasury has issued a red alert for vehicle imports are misleading and baseless.

Addressing the media, Deputy Minister Anil Jayantha said that the news report claims that the government has no foreign exchange for the import of vehicles and that it has resulted in a serious situation.

He clarified that the Central Bank of Sri Lanka and the Ministry of Finance have not issued any official statement in this regard, adding, “the news has been curated on baseless information.”

The Deputy Minister warned that such news reports can cause adverse effects in the local market, urging the public to be vigilant of such false news and the people behind such false information who benefit from such instances. (Newswire)

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Deputy Minister of Economic Development Anil Jayantha Fernando says there is no possibility of increasing electricity charges in the near future, responding to uncertainty that had arisen following a recent statement by the International Monetary Fund (IMF). 

Recently, IMF Sri lanka Mission Chief Evan Papageorgiou announced that Sri Lanka should restore cost-recovery electricity pricing as soon as possible to minimise fiscal risk and is essential to complete the fourth review of the IMF’s External Fund Facility (EFF) programme.

Speaking during a televised interview, Deputy Minister Anil Jayantha Fernando clarified that electricity charges will only increase if there is an increase in generation costs. 

“The IMF statement does not mean we have not collected generation costs. It means that generation costs were not collected through proper means in the last quarter. We have collected information in this regard,” he said. 

The Deputy Minister said that, based on this information, there was no way to increase electricity charges for the next quarter.

“We cannot say what will happen thereafter, when the generation costs change. But at present, charges are determined based on generation costs. As such, there will be no change in electricity charges in the near future,” he added. (Newswire)

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