Wish Broadcasting Faces Rs. 80 Million Tax Demand amid Operational Uncertainty
- CNL Reporter
- August 21, 2025
- News
- Wish Broadcasting
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The Inland Revenue Department (IRD) of Sri Lanka has issued a tax demand of Rs. 80 million to Wish Broadcasting, a company associated with Subaskaran Allirajah. This development has raised concerns about the future of several media outlets under its purview, including the recently shut down Monara TV, Sitha FM, Red FM, Tamil FM, and CRI.
Wish Broadcasting’s ownership of these frequencies has placed them under scrutiny as the IRD intensifies efforts to recover outstanding taxes. The company’s gradual withdrawal from operations in Sri Lanka has added to the uncertainty surrounding these media outlets. Former Selacine Chairman Shantha Bandara Jayawardena hinted at the potential closure of Sitha FM in a recent Facebook post, while Hoshia Anojan, a key figure at Tamil FM, announced his resignation from the station.
The IRD’s action is part of a broader initiative to address the significant tax arrears in Sri Lanka’s media sector. The department has issued notices to nearly 1,000 companies, including those in the media industry, demanding settlement of tax arrears exceeding LKR 160 billion within six months or face asset seizures. Specific data on tax arrears within the television and broadcasting sector is limited, but the IRD’s efforts indicate a concerted push to recover outstanding taxes across various industries.
Under the Inland Revenue Act, the IRD has the authority to recover outstanding taxes through various legal measures, including the issuance of certificates stating the amount of tax owed, which are sufficient evidence in court proceedings, and initiating legal action in courts to recover outstanding taxes. In cases of non-payment, the IRD may seize assets to recover dues.
The IRD has implemented several measures to recover outstanding taxes, including launching a tax recovery program to recover LKR 570 billion in outstanding taxes from certain taxpayers under the self-assessment payment system, with a deadline of November 30. The department has also seized bank accounts of 900 taxpayers and initiated legal actions to recover dues, offering installment plans to taxpayers to facilitate the settlement of arrears.
While the IRD has made significant strides in recovering tax arrears, the broadcasting sector continues to be a focal point due to its financial challenges. The IRD’s ongoing efforts, including legal actions and recovery programs, aim to address these issues. However, the complexities of the appeals process and sector-specific challenges necessitate continued attention and action.
The situation underscores the need for a comprehensive approach to address the financial and operational challenges facing Sri Lanka’s media sector. Stakeholders, including media companies, regulatory authorities, and the public, must collaborate to ensure the sustainability and integrity of the industry.
As the IRD continues its efforts to recover outstanding taxes, the future of Wish Broadcasting and its associated media outlets remains uncertain. The company’s gradual withdrawal from operations and the recent tax demand highlight the financial pressures facing the media sector in Sri Lanka. The coming months will be critical in determining the trajectory of these media outlets and the broader broadcasting industry in the country.
