INSUBCONTINENT EXCLUSIVE:
Sagala Ratnayaka said:When President Ranil Wickremesinghe assumed office, the country faced a severe economic crisis marked by long queues
ineffective agricultural policy, and a decrease in tax filings
Additionally, the economic downturn was heightened by a drop in tourist arrivals due to the Covid epidemic, resulting in a loss of foreign
exchange.In response to these challenges, the current president took charge amidst this economic turmoil
economic trajectory.Furthermore, there are new proposals for reform aimed at boosting the tourism industry, contributing to a surplus in the
balance of payments under this economic program
Notably, foreign reserves, which stood at 2.1 billion dollars in 2022, have seen a significant increase to 4.5 billion dollars today.The
government has successfully curtailed inflation from 77% in 2022 to a commendable 4% at present
Achieving a state revenue around 16% of the Gross Domestic Product (GDP) is essential for effective governance
Despite the challenges, the economic reforms implemented in 2023 resulted in a state income of approximately 11% of the GDP.The key to
economic stability lies in strengthening government revenue, and plans have been set in motion to systematically increase revenue through
anticipated within the next year if this economic program is effectively executed
The 2024 budget outlines development proposals, including the provision of free land for farmers and housing rights for urban residents,
with substantial allocations for relief.Additionally, proposals for the modernization of the agriculture and fishing industries have been
submitted.Moreover, Sri Lanka holds the potential to generate 80 gigawatts of renewable energy, far exceeding the estimated 15 gigawatts
required for total electricity consumption by 2050
Plans are underway to position Sri Lanka as a centre for energy export, including the production of green hydrogen to boost the national
diligently implement this budget to ensure the public receives maximum relief
Unnecessary apprehension about budget proposals should be avoided
obligations of existing foreign loans led to a situation where no country was willing to engage in business with Sri Lanka
Consequently, shortages of gas and fuel emerged, plunging the nation into a profound economic crisis.In response to this dire situation,
President Ranil Wickremesinghe assumed leadership, engaging in negotiations with the International Monetary Fund and instituting a new
a severe crisis is a process that takes time and requires a formalized program.The proposed new economic reforms aim to stabilize the
economy in the coming years, and the current budget marks the initial step in this direction
Positive economic measures, including fortifying the export economy, implementing anti-corruption initiatives, enhancing security, providing
budget was presented by President Ranil Wickremesinghe in his role as the Minister of Finance, serving as the economic blueprint for the
Even in challenging circumstances, the realization of the proposed initiatives hinges on meaningful discussions within society regarding
this budget.There have been widespread misconceptions, particularly concerning the Value Added Tax (VAT) amendment
experience a 3% increase from their existing VAT, while others will see a jump from 0% to 18%
comprehensive and informed discussion within society is vital to address concerns and provide clarity on the implications of these VAT
been noted, with the potential to contribute 6% of the Gross Domestic Product to the economy if properly collected
Presently, only a 2% contribution is observed
The investigation identifies three primary tax leakages
Firstly, businessmen collect tax but fail to remit it to the government.Secondly, tax losses occur due to irregularities among officials
The third leakage results from tax exemptions
It is imperative to take measures to prevent these leakages, as doing so holds the key to stabilizing the economy.In the first half of 2019,
VAT stood at 15%, reducing to 8% in 2020 and maintaining the same rate in 2020, 2021, and 2022
Despite the reduction in VAT to 8% in 2020, there was no corresponding decrease in the prices of goods
Likewise, keeping VAT at 15% for the following three years did not stimulate an economic upturn in the midst of the collapse
Senaratne, the Western Provincial Secretary, government officials from the Colombo district, political activists, trade union leaders, and
numerous civil society activists, including journalists.
