INSUBCONTINENT EXCLUSIVE:
revenue from Value Added Tax (VAT) accounts for 61% of the projected shortfall, with the remainder attributed to overestimations in
corporate income tax, personal income tax, Social Security Contribution Levy (SSCL), and Customs import duty
This persistent pattern of overestimation underscores the need for more accurate fiscal planning and forecasting methodologies.Beyond
revenue projections, Sri Lanka faces another pressing issue, its soaring interest-cost-to-revenue ratio, the highest globally
Projections suggest that this ratio will likely exceed 70%, a hindrance to economic recovery and debt sustainability
Addressing these issues requires concerted efforts to improve revenue collection mechanisms, accurately forecast fiscal targets, and pursue
prudent fiscal policies to ensure sustainable economic growth and stability.--Public Finance--
