US seeks more transparency in SL for economic growth

Sri Lanka needs to ensure they are geared to establishing a transparent system that will gear up the country to improved economic growth, US Ambassador Julie Chung said.

Addressing the American Chamber of Commerce in Sri Lanka (AMCHAM) recently, the ambassador elaborated on the fact that the people of Sri Lanka "deserve and continue to demand openness, transparency, and accountability from their leaders as the process of reforms moves forward."

The Ambassador was speaking on the topic of "75 years and Beyond: US - Sri Lankan Business Relations in 2024."

She highlighted that imposing VAT is not the only way out but if the government wants to showcase their commitment to economic progress then they need to inform the public on the reason for taking such measures that must be addressed in a "structural, sustainable way, fair and transparent to all."

She also called on ensuring that it was not enough to just raise taxes but also to eliminate tax loopholes, addressing government inefficiencies, particularly in state owned enterprises.

In this respect Ms. Chung called for the eradication of corruption at state institutions like the Sri Lanka Customs which needs to be digitalised to raise revenue and reduce corruption.

"Creating predictable customs duties and streamlined processes would encourage importers, who want to import more to Sri Lanka but are worried about the uncertainty in the import process."

It was noted that exports and private sector growth will be the engine of recovery and in this respect, the US is willing to help be part of the solution.

She was also critical of the government's adoption of the Online Safety Bill which was a piece of legislation that more than 70 per cent of Sri Lankans were unaware of before its passage according to a recent survey.

It was also pointed out that at a time when such legislation was considered "unworkable" by global tech companies, passing it in Parliament will only send negative signals in Sri Lanka's path towards reform and recovery.
 

The Ambassador also called on the business leaders to not just wait for the government to act but to play their role as well as community thought leaders.