Everything You Need To Know About The Increase In VAT On May 2, Sri Lanka raised its headline rate of value-added tax (VAT) from 11% to 15% to shore up the nation’s finances in an attempt to reduce government deficit, which has been hit by increased levels of borrowing, falling oil prices, and international economic turmoil. Based on the stats in 2015, the Government owed Rs. 9.5 trillion ($65.6 billion) ...

Excerpts from a comment by Kieth on Income InequalityFeudalism – exploit the masses through land ownershipCapitalism – exploit the masses through wealth (Capital)Today this is done through the parasitic, rentier trickle up of Capitalism:a) Those with excess capital invest it and collect interest and rent.b) Those with insufficient capital borrow money and pay interest and rent.All this was much easier ...

Is the Dry Zone becoming a Wet Zone Many Sri Lankans may remember from school geography the Dry Zone of Sri Lanka is from North West (Puttalam) to East (Batticoloa) and South East (Hambanthota). In this area rain is received only from the North East (NE) monsoon, i.e. mid-late October to January. May to November is dry with hardly any rain.Has this changed. Last year (2015) there ...

Poll: To Privatise Or Not? Privatisation of state-owned enterprises (SOEs) has always been a thorny issue in Sri Lanka, both politically and ideologically. It is no secret that an alarmingly high number of SOEs have made – and continue to make – massive losses year after year, leading to, among other things, a lack of funding that has in turn resulted in an erosion of ...

CSE Monthly Analysis: April 2016 Come April, earnings season is in full swing at the CSE. Most listed companies in Sri Lanka close their books on the 31st of March, and release their Annual Reports over the next few months. April also brought good news to the ears of investors, since the Government managed to negotiate a $1.5 billion Extended Fund Facility (EFF) from the ...

Nissan Buys 34% Shares In Mitsubishi Motors In a rather unlikely turn of events, Nissan has taken a controlling stake in Mitsubishi motors with aims to “rebuild trust” in the company after they faced a rather embarrassing scandal after admitting that they had provided falsified information to overemphasize the fuel efficiency of more than 600,000 cars. Image taken from http://www.channelnewsasia.com/ According to the report, Mitsubishi fabricated mileage ...

Revisiting ties with China, a bailout deal from the IMF, and increases in VAT have been making headlines recently. What does this all mean from an economic standpoint, and is Sri Lanka following the right tactics? Groundviews spoke to some economists to ask if they could unravel these issues. Those interviewed include Eran Wickramaratne, Deputy Minister of State Enterprise Development, Chief ...

Panama Papers: List of individuals, intermediaries and addresses connected to Sri Lanka A large tranche of documents was released on 9 May 2016 by the International Consortium of Investigative Journalists (ICIJ) around “Panama Papers”, a fraction from a trove of more than 11.5 million leaked files from the Panama-based law firm Mossack Fonseca, one of the world’s top creators of hard-to-trace companies, trusts and foundations. As noted on the ICIJ website, The Panama Papers ...

Senior Research Fellow Payal Malik has co-authored an op-ed on surge pricing in the taxi market that addresses some key issues of platform markets. The distinguishing feature of platform markets is the lowering of transaction costs through the use of ICTs. State action to prohibit such applications is retrograde. Instead, what should be done is to remove no-longer-justifiable constraints such ...

Featured image courtesy Asianews The case for serious reform necessary to return to a decent, civilised life for all in Sri Lanka has not been seriously argued in political forums all these years. There is a total disconnect between the economics of life and politics in this unrestricted open market economy. Discussing reform and reconciliation thus leaves out market economics. ...

How the VAT changes will affect your internet bill Value Added Tax (VAT) as of late has been a topic spewing as much heat as the weather. Should we be worried though? Early on this month President Maithripala Sirisena himself told his Polonnaruwa gathering that he wasn’t fully on board with the revised rates which threatened to impose a burden on people. Image credits: arabianbusiness.com What is this burden ...

The Government’s controversial 65,000 housing project in the North and East continues to come under heavy criticism with the latest call for review of the entire project by the Tamil National Alliance. A team of experts, all faculty members from the University of Moratuwa has recently released a preliminary report of their comparison of the proposed steel houses by ArcelorMittal ...

His cologne takes your attention before you see him. Forcing your instincts to turn and notice. That his Versace, Patek Phillipe and the rest are real. That you are in the presence of a higher power. A power that does business with men who toy with the fate of nations. Over food, wine and single…

The Sri Lankan rupee has been depreciating rapidly in the last few months and the satirical website NewsCurry suggested that the US dollar to adopted to prevent further depreciation. Although this sounds absurd, as my previous post explained this is actually a workable and serious proposition.A Currency Board would also achieve the same ends and would be easier to implement ...

Field Notes: CMS Africa Summit 2016 Automatticians, the people who build WordPress.com, participate in events and projects around the world every day. Periodically, they report back on the exciting things they do when not in front of a computer. Today I share my experiences meeting and getting to know some of the most active members of the open source community in East Africa during the CMS ...

The inimitable, NewsCurry carries an article claiming that the Finance Minister has proposed adopting the US dollar as Sri Lanka's currency to prevent further depreciation of the rupee. Although NewsCurry is only satire the suggestion is actually very sensible and has been adopted in certain extreme circumstances to stabilise an economy, the most recent being in Zimbabwe.The process is termed ...

Just over a year ago a great controversy erupted over the an issue of bonds by the Government of Sri Lanka. The bonds were bought by a company controlled by the son-in-law of the Central Bank Governor which obtained a large chunk of the bonds on offer at premium interest rates.At the time there was some doubts as to whether ...

Image courtesy CNN “To walk our way and keep our eyes fixed on it Is mankind’s first and foremost obligation.” Iphigenia in Tauris (Goethe) It is a lie, beloved by the powerful, the rich, the privileged, that transparency is inimical to national security and public wellbeing. National security and public wellbeing suffer greater harm, where there is no transparency and ...

Microimage unveils Microimage HCM Cloud It was a Wednesday evening on the 30th of March. As we walked into the Hilton ballroom, we saw that everything was ready for Microimage’s latest event. Titled “Digital Transformation of HR”, this was where Microimage would be unveiling its latest product: Microimage HCM Cloud. The event began with Harsha Purasinghe, CEO of Microimage taking center stage. He started off ...

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