MP Dilith Jayaweera has criticized the new 15% services export tax, stating that it discourages creative entrepreneurship and could drive foreign exchange transactions into informal channels like the Undiyal system.

Referring to the February 21 gazette amending the Inland Revenue Act, No. 24 of 2017, Jayaweera highlighted a key clause: “Gains and profits earned or derived in foreign currency and remitted through a bank to Sri Lanka – 15%.”

He noted that the tax applies to freelancers and professionals, including content creators on YouTube and Facebook, freelance creatives using platforms like Fiverr, and consultants such as doctors, lawyers, and accountants.

Jayaweera described the tax as a severe blow to entrepreneurship in Sri Lanka, warning that it would reduce foreign exchange inflows at a time when the country urgently needs them.
“The government will only lose dollars, not earn it, at a time when foreign exchange is needed,” he said.

Calling for collective action regardless of political divisions, he urged all parties to pressure the government to withdraw what he termed an unfair tax. (Newswire)

The post Dilith slams 15% dollar tax, warns it promotes Undiyal appeared first on Newswire.

Two persons have been arrested with Rs. 8.2 million cash in hand which is suspected to have been earned via the illegal money-transferring channel, commonly known as the Undiyal system. 

The Police stated that the suspects were arrested by the Police Special Task Force (STF) from Dam Street, Kesellwatte in Colombo 12.

The suspects were arrested based on intelligence information received by the Sri Lanka Navy.

Among the two suspects, the key suspect is a 39-year-old man from Wattala, while the other suspect is a 62-year-old man from Wellampitiya.

The suspects have been handed over to the Keselwatte Police for further investigations. (NewsWire)

The post Undiyal racket busted in Colombo, Two arrested with Rs. 8.2 mn appeared first on Newswire.