To deal with the economic crisis, President Sri Lanka announced that it would raise taxes and strengthen the social security plan

[Global Times Reporter Wang Yitong] Sri Lanka President and Minister of Finance Victor Mindu on the 30th in Parliament's temporary budget speech in the parliament on the 30th that the government will raise taxes and strengthen social security plans to obtain the International Monetary Fund ( IMF) funding and guided Sri Lanka to get out of a serious economic crisis.

Vikra Masinger Information Map

According to Sri Lanka's "Daily Mirror" reported on the 30th, Vikra Masinha said in his speech on the same day that in order to increase taxes, the value -added tax will be increased from 12%to 15%from September 1, and some of the income tax and value -added tax will be increased. The tax reform related to telecommunications tax and gaming tax has been approved for implementation. In addition, in order to reduce tax loss, it is recommended to force people over 18 years of age to register at the domestic tax bureau. Vikra Masinha said that the target of the medium -term economic growth is 5%, and it is expected that the proportion of public revenue by GDP will increase from 8.2%to 15%by 2025, and establish a solid economic foundation by 2026.

In terms of state -owned enterprise reform, Vikra Marinha said that foreign companies will encourage foreign companies to participate in the investment and development of Sri Lanka's natural resources; the government has decided to establish a "state -owned enterprise restructuring department" to reorganize losses; and set up an independent National Debt Management Institute under the Ministry of Finance. In addition, from December 31st this year, the retirement age of government departments and state -owned enterprise employees has been reduced from 65 to 60.

The IMF delegation discussed the $ 3 billion rescue plan agreement in Colombo from August 24th to 31st, including reorganization of about $ 29 billion in debt. Vikra Marinha said on the 30th that the discussion with the IMF has successfully entered the final stage and hopes to begin negotiation with creditors.

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