Sri Lanka’s newly revised Inland Revenue Act, which was passed by parliament on September 7, will augment the country’s very low level of government revenues by replacing the existing law with a more efficient, modern and broad-based tax framework, according to William Foster, Vice President, Sovereign Risk Group, Moody’s Investors Service..
In a statement to the media on Monday, Mr. Foster said that through past additions of multiple tax exemptions, Sri Lanka's income tax efficiency and tax collection are weak relative to other sovereigns.
“The general government revenue-to-GDP ratio was only 14.3 per cent in 2016, one of the lowest among B-rated sovereigns. The reforms of the Inland Revenue Act offer prospects of higher revenues. The implementation of revenue reforms that foster long-term fiscal consolidation will be critical to shoring up Sri Lanka’s credit profile, which is weighed down by the country’s large debt burden and relatively weak debt affordability,” he added.
A Sri Lanka Air Force Bell 212 helicopter belonging to the No. 72 squadron has crashed into the Madhuru Oya reservoir this morning, Air FOrce Media Spokesman Eranda Geeganage said.
Read this week’s Sunday Times for your interesting articles including the ’’5th Column’’.
In its first electoral test since taking power, the ruling National People’s Power (NPP) fell short of expectations, winning only around 40 % of the national vote in Tuesday’s local government election and falling short of enough seats to gain control of the majority of councils.
Leave Comments