Public Finance Data and Analysis
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The International Monetary Fund (IMF) recommends Sri Lanka to increase tax collection, end corporate tax exemptions, and undergo macroeconomic reforms. Notably, it emphasizes securing agreements with private bondholders and China. Despite observing economic recovery signs, the IMF points out the socio-economic costs of these reforms. It criticizes tax concessions given to various sectors, stressing the importance of fair tax collection and suggesting the implementation of a property tax. The IMF highlights the necessity of comprehensive agreements for debt sustainability, amidst a backdrop of economic challenges including inflation, export decline, and public discontent towards higher taxes.
