The Sri Lanka Book Publishers' Association has warned that VAT and other taxes on printed books introduced in January 2023 are forcing authors and publishers to leave the sector, with an estimated 50-60% of authors and 40% of publishing companies exiting over three years.
The Sri Lanka Book Publishers' Association has raised fresh concerns about the sustainability of the publishing industry, attributing significant departures to tax policies implemented at the start of 2023. Board Member Gamini Moragoda stated that approximately half to three-fifths of authors have abandoned the profession in the past three years, while roughly 40% of publishing companies have ceased operations during the same timeframe. The association links these exits directly to the introduction of VAT and other levies on printed books.
According to Moragoda, the taxation has sharply elevated book prices, which has subsequently dampened consumer demand. He stressed that VAT had never previously been applied to reading materials in Sri Lanka and characterised the measure as an unjust imposition on readers, particularly families purchasing educational materials for children. The association claims that approximately 95% of countries globally do not tax printed books, and notes that no Asian nation currently implements such taxes.
The Publishers' Association has formally requested the government to eliminate VAT and other taxes on reading materials, arguing that revenue loss would be minimal. Moragoda cautioned that maintaining the tax regime for another decade would inflict lasting damage on the country's literary ecosystem and further discourage industry participation. The association has previously engaged with government ministers and gathered public support through petitions at major book exhibitions.
Publishers contend that tax removal would lower book costs, stimulate reading habits, and provide relief to households already experiencing economic strain. The association emphasises that these measures are essential to prevent further deterioration of Sri Lanka's publishing and literary sectors.
