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With the 9th Executive President of Sri Lanka Anura Kumara Dissanayake assuming office, ‘At HydePark with Indeewari Amuwatte' featured National Executive Committee Member of the National People's Power, Chathuranga Abeysinghe, to discuss the way forward of the new administration and pressing issues facing Sri Lanka's economy, particularly regarding tax policy and national security.
Abeysinghe highlighted the significant impact of proposed reductions in value-added tax, particularly the exemption for essential items, which could lead to an annual loss of about Rs. 55-60 billion in tax income.
However, this initiative aims to stimulate consumption and support businesses, reflecting a broader strategy to recover approximately 120 billion rupees annually through various measures, including addressing leakages in customs and excise.
Despite these challenges, he emphasized that ongoing negotiations with the IMF will start in two weeks, focusing on finding ways to balance tax benefits with the need for increased public revenue.
The discussion also addressed the importance of restructuring state-owned enterprises (SOEs) in line with IMF recommendations.
Furthermore, Abeysinghe reaffirmed the commitment to a balanced foreign policy that engages with multiple nations, including India and China, to safeguard Sri Lanka’s sovereignty while attracting strategic investments.
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