Sri Lanka Hikes  VAT, Taxes
World Economy

Sri Lanka Hikes VAT, Taxes

Sri Lanka will raise its value added tax and reintroduce capital gains tax to break out of a debt trap, Prime Minister Ranil Wickremesinghe said on Tuesday, ahead of talks on a $1.5-billion loan it is seeking from the International Monetary Fund, Reuters reported. Sri Lanka’s finances are under scrutiny after ratings agency Fitch last week downgraded its sovereign rating by a notch, to “B+”, spurred by a ballooning fiscal deficit, rising foreign debt and sluggish growth prospects. It also faces a balance-of-payments crisis after a third of its foreign exchange reserves was depleted within the 15 months to January by the central bank’s defense of the rupee currency, pressured by heavy debt piled up under the previous government. “This crisis can be overcome only by reducing the budget deficit and a medium-term joint financial program aiming at suitable reforms to reduce the debt burden,” Wickremesinghe told lawmakers. Taking action to boost revenues, he announced that VAT would be hiked to 15% from 11%, while capital gains will be taxed for the first time since 1987.


Short URL : http://goo.gl/sKR0N2
  1. http://goo.gl/sDtmk7
  • http://goo.gl/BiSlvb
  • http://goo.gl/VwWMjs
  • http://goo.gl/7gdl1J
  • http://goo.gl/yrmBeZ

You can also read ...

China Warned of Ballooning SOEs
Former chief of the World Bank Robert Zoellick cautioned China...
Business confidence fell to its lowest level since August 2013 and around 7% of companies expected a contraction.
According to data from the International Monetary Fund in...
Shrinking unemployment in the US, Japan and the eurozone finally forces companies  to lift wages to retain and attract staff.
Workers in the world's richest countries are getting their...
New Zealand Q2 GDP Growth Picking Up
New Zealand’s economic growth is expected to have accelerated...
Saudi Sovereign Fund Secures $11 Billion Loan
Saudi Arabia's sovereign wealth fund said Monday it had...
Lira Eases Against Dollar
Turkey’s lira weakened against the dollar on Monday as...
By 2025 more than half of all current workplace tasks  will be performed by machines.
Robots will handle 52% of current work tasks by 2025, almost...
Myanmar Businesses Want Lower Taxes
Myanmar businesses are urging the government to lower the...