Sri Lanka’s tax reforms take a back seat in national development plan
View(s):Sri Lanka’s tax reforms aimed at raising state revenue is to take a back seat under latest changes made to the proposed National Economic Development Plan (NEDP). The country’s top policy makers have recommended that tax reforms be excluded, for the moment, in the draft plan which should have more positive and clearly articulated economic development initiatives, official sources revealed. The NEDP was scheduled to be unveiled in June according to an announcement made by Prime Minister Ranil Wickremesinghe at the National Summit on Foresight and innovation held in Colombo in May. Then during a visit to China last week, the PM said the NEDP will soon be presented.
However policy makers do not seem to be enthusiastic to finalise the NEDP as quickly as planned, an independent analyst said, adding that if the country fails to tackle the current development challenges, political instability is likely to engulf the island with serious repercussions. When a country is faced with an economic crisis, it is usual for officials in charge of economic management to pay more attention on short-term or day-to-day management issues, he said. The assistance to Small and Medium Enterprises sector, upgrading Human Capital,
Agriculture and Fisheries will be listed at the beginning of the NEDP document giving highest priority to education, research and development and human resource planning, a senior official who wished to remain anonymous told the Business Times. Meanwhile modern manufacturing, Technology and Robotics and Digital Economy are to be rephrased in the document and a suitable phrase would be recommended by Minister of Megapolis and Western Development, Patali Champika Ranawaka, he said. - (Bandula)