Inflation ( CCPI)1.5% (Oct 2023)
GDP-3.1% (2Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate15.29%
12M T-Bill Rate12.94%
2Y T-Bond Rate14.45%/ 14.50%
4Y T-Bond Rate14.70% / 14.80%
USD/LKR327/328
Reserves $3.56Bn (Oct 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

IMF projects to triple the Government Revenue within four year from 2022

IMF & Sri LankaMar 23, 2023
IMF projects to triple the Government Revenue within four year from 2022

Sri Lanka Government Revenue fell since 2019 to 2021 due to massive tax cuts. Along with new taxes, the Tax revenue improved in 2022 and expect to grow by 61% in 2023 as per the IMF. IMF expects a substantial tax increase from 2022 to 2026 (197%) and total revenue to reach LKR 2 Trillion to close to LKR 6 trillion by 2026.

IMF highlights that the weak tax revenue performance in history reflected a combination of low tax rates, narrow tax bases, and low collection efficiency. That needs to address with wide-ranging tax reforms.

IMF state “The authorities have implemented a progressive tax reform package since May 2022” and “the authorities commit to introducing a property tax, as well as a gift and inheritance tax before 2025”.

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