- Sri Lanka’s President Ranil Wickremesinghe defends proposed VAT hike as necessary for economic stability
- The increase in VAT is seen as a way to boost income and prevent bankruptcy in the future
- Opposition leader Sajith Premadasa criticizes the tax hike, saying it burdens the working and underprivileged classes
- The salary hike for state sector workers is to be proposed in the upcoming budget for 2024
- Sri Lanka’s deal with the IMF includes a target of achieving a primary surplus of 2.3% of GDP by 2025
- Wickremesinghe’s administration has also increased personal income tax and plans to hike VAT despite protests and increased migration
- The president believes these decisions are necessary for the well-being of the country and to support small and medium-scale industries
- A survey by the ILO found that the COVID-19 pandemic and currency crisis of 2022 severely impacted businesses in Sri Lanka
- Wickremesinghe aims to strengthen Sri Lanka’s export-oriented manufacturing economy and negotiate with international financial institutions for support.
Source: economynext.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
