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Over the last two decades, China has become a major financing source for Sri Lanka's infrastructure development.

Charuka Peiris, Programme & Research Officer at Arutha and Shaheen Abdul Gani, Research Assistant at Arutha write to The Diplomat on India's swift and significant support to Sri Lanka during recent crises in the broader context of India's failing relationships in the South Asian region. " Ultimately, this leaves Sri Lanka as one of the few countries in South Asia – historically considered India’s backyard – with whom New Delhi continues to enjoy consistent and reliable relati

Charuka Peiris, Programme & Research Officer at Arutha, writes to The Diplomat on surge of Indian tourism to Sri Lanka - bolstered by a shared culture and love of cricket. Read the full article here: https://thediplomat.com/2026/02/beyond-the-ramayana-trail-why-indian-tourists-matter-more-than-ever-to-sri-lanka/

The Microfinance and Credit Regulatory Authority (MCRA) Bill 2025, is legislation which introduces a consolidated regulatory framework to govern Sri Lanka’s microfinance and moneylending sectors. By repealing the Microfinance Act No. 6 of 2016, the Bill establishes a more empowered statutory authority with expanded supervisory, licensing, and enforcement capabilities. Arutha’s latest brief analyses the latest Bill and whether it does enough to protect the most vulnerable.

Arutha's brief on the new microfinance bill was cited in the Examiner. The Microfinance and Credit Regulatory Authority (MCRA) Bill 2025, is a new legislation which introduces a consolidated regulatory framework to govern Sri Lanka’s microfinance and moneylending sectors. By repealing the Microfinance Act No. 6 of 2016, the Bill establishes a more empowered statutory authority with expanded supervisory, licensing, and enforcement capabilities. Arutha’s brief analysed the lat

Economist, Co-Founder and Director of Arutha's Civic Education Initiatives, Rehana Thowfeek spoke to Ruwandi Perera from LMDtv.

Arutha Executive Director Yolani Fernando speaking to The Morning, commented on new collection strategies to strengthen tax compliance.

This report examines how China’s SOEs have operated and evolved in Sri Lanka over the past two decades.

Executive Director of Arutha, Yolani Fernando shed light on the current economic situation following Cyclone Ditwah.

The para-tariff phase out proposed in Budget 2026 is set to go ahead this year despite discrepancies in revenue targets which forecasts growing revenue collections from Cess, Ports and Aviation Levy (PAL) and Special Commodity Levy (SCL) Para-tariffs are tariffs on imports which are in addition to the standard Customs Duty and have been identified as a major blocker of export growth. According to budget 2026 revenue estim ates, the government hopes to collect 67% of all taxes

Sri Lanka has relaxed long-standing restrictions on night work for women. The ban under the Shop and Office Employees Act of 1954 reflected social assumptions about women’s safety and family roles. It contributes to limiting female labour force participation, which remains around 31.6%. The Ministry of Labour has emphasised t hat Employers must ensure safety, healthcare, and welfare of women working night shifts. Night work requires premium pay. These reforms could fill work

China remains central to Sri Lanka’s economic and diplomatic landscape, particularly in the aftermath of its sovereign default. The debt restructuring process underscored China’s dual role as both a bilateral and commercial creditor, while trade and investment links highlight a structural asymmetry — Sri Lanka imports heavily from China but exports little in return.

While many fear that reducing the VAT threshold to Rs 36 million will cause inflation, Sri Lanka's recent history with VAT threshold reductions have proven otherwise. Read the latest op-ed on VAT threshold reductions by Arutha Director Rehana Thowfeek.

The government’s Budget 2026 proposal to subsidise part of plantation worker wages raises questions on fairness, employer responsibility and accountability. Arutha’s latest brief analyses the impact and practicality of this proposal.

GoSL has reached an 'agreement in principle' with creditors to restructure a USD 175 million bond issued by Sri Lankan Airlines (SLA).

Signals a mismatch between announced policy and revenue projections.

Prices should have reduced by 15%, but in reality only reduced by 6%.

"If revenue from PAL, CESS and SCL are expected to grow every year until 2028, signaling a clear mismatch between the hashtag#budget2026 policy announcement and the numbers underpinning the budget".

The Tamil Progressive Alliance (TPA) has expressed support for the 2026 Budget’s proposed daily wage increase for plantation workers, while urging clear implementation and wider structural reforms.

“In some ways you want a boring budget,” says Yolani Fernando, an ex-Treasury staffer who now heads Arutha, a think tank. “On the fiscal side, this budget is boring. That's a good thing. It means there is policy continuity. The rest of it isn’t bold. You're staying on the track, going as fast as you were in the past. But that’s not going fast enough for seven percent growth.”