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Sri Lanka
Sri Lanka
10th Parliament· 154 sittings on record · 30,475 speeches · latest 10 June 2026

Sitting of Tuesday, 3 June 2025

10th Parliament· 23 debates· 181 speeches· 56 speakers

Source: Hansard PDF (parliament.lk) ↗ ·No. 1750149440002739 ·English daily/uncorrected Hansard

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Order of business

Speeches load per item. Summaries shown here are AI-generated and labelled; verbatim text is on each speech page.

  14. 14 Oral question Private Notice Question: VAT on Locally Produced Sugar 8 speeches
    • The Hon. Speaker procedural
      Full speech →
    • The Hon. Sajith Premadasa - Leader of the Opposition SJB

      AI summary Hon. Sajith Premadasa raised a Standing Order 27(2) question on challenges facing Sri Lanka’s domestic sugar industry, particularly affecting about 250,000 people in the Uva-Wellassa region. He asked the Government for data on Lanka Sugar Company factories, domestic production, imports, tax treatment, reported losses at Gal Oya, Ethimale, Pelwatte and Sevanagala, and the profitability plan for State-owned sugar institutions. He questioned why locally produced sugar and ethanol are subject to VAT and other taxes while imported sugar is reportedly treated more favourably, and requested urgent action to reduce losses, protect cane farmers, and address ethanol pricing and tax burdens.

      Public FinanceAgriculture Full speech →
    • The Hon. Speaker procedural
      Full speech →
    • The Hon. Sunil Handunnetti JJB

      AI summary Hon. Sunil Handunnetti provided data in response to the Opposition Leader on Sri Lanka’s sugar industry, identifying Pelwatte and Sevanagala as state factories, Ethimale as private, and Gal Oya as a public-private partnership. He tabled production figures showing Lanka Sugar Company produced 39,721 metric tons in 2024, about 6.03% of national sugar demand of 658,678 metric tons. He stated that imports were mainly refined white sugar, with 564 million kg imported in 2024 and 140 million kg from January to February 2025, and clarified that imported sugar is subject to a Rs. 50 per kg Special Commodity Levy while local sugar bears 18% VAT and 2.5% SSCL.

      AgriculturePublic Finance Full speech →
    • The Hon. Sajith Premadasa SJB

      AI summary Sajith Premadasa clarified that his question was not about removing VAT on imported sugar, but about the rationale for imposing VAT on locally produced sugar. He sought a specific explanation from the Minister on the tax treatment of domestic production.

      Public Finance Full speech →
    • The Hon. Sunil Handunnetti JJB

      AI summary Hon. Sunil Handunnetti said locally produced sugar became subject to VAT from 1 January 2024 as part of a broader rationalization of exemptions, but argued that VAT removal alone would not address the sector’s difficulties. He stated that the Government has maintained farmer cane payments and employee benefits, fixed State-sector ethanol sales to distilleries at Rs. 800 per litre, and plans to establish a floor price for brown sugar while curbing mislabelled imports. He also said the Government will not privatize the Pelwatte and Sevanagala factories, and is preparing measures including brown sugar exports, market standardization, tourism-related use of factory lands, and resolution of land title issues to restore profitability.

      AgriculturePublic Finance Full speech →
    • The Hon. Sajith Premadasa SJB

      AI summary Sajith Premadasa questioned why domestic sugar production is subject to 18 per cent VAT while imported sugar is charged only a Rs. 50 Special Commodity Levy. He challenged the Minister’s statement that the tax is an IMF condition and urged the Government, consistent with its election pledge to consult on an amended IMF agreement, to negotiate with the IMF to remove the VAT and develop a workable plan for the domestic sugar industry.

      AgriculturePublic Finance Full speech →
    • The Hon. Sunil Handunnetti JJB

      AI summary Hon. Sunil Handunnetti stated that the Government is operating within IMF fiscal parameters and cannot selectively exempt one industry from VAT without creating a precedent. He said options are being examined to limit VAT to actual factory-level value addition or reimburse VAT through the Treasury, estimated at Rs. 1.3 billion annually. He added that any reimbursement would require an offsetting revenue plan to meet revenue-to-GDP and primary surplus targets, with proposals to be included in a report to the President covering revenue from exports, tourism, and organic brown sugar.

      Public FinanceAgriculture Full speech →