December 05, Colombo (LNW): Leader of the House Minister Bimal Rathnayake confirmed that the revised terms of Sri Lanka’s agreement with the International Monetary Fund (IMF) will be featured in the upcoming national Budget.
Rathnayake made these remarks during a parliamentary debate on the government’s policy statement, where he addressed a range of critical economic issues.
He explained that, as part of the government’s ongoing commitment to working within the framework of the IMF over the next three years, necessary revisions have been made to the existing agreement.
“We have always been clear about the need to operate within the framework of the IMF, and yes, we have undertaken revisions to the agreement. These changes have been discussed and finalised with the IMF, and the people of Sri Lanka will learn about these revised terms when the Budget is presented,” Rathnayake said.
The Minister also responded to allegations made by former President Ranil Wickremesinghe, who had claimed that the government had misrepresented its plans to reduce Value Added Tax (VAT).
Rathnayake refuted these claims, reiterating that the VAT reduction was indeed a part of the government’s fiscal strategy. He clarified, however, that any reduction in taxes, including VAT, would need to be enacted through a parliamentary bill, underlining the legal procedures required to implement such changes.
Furthermore, Rathnayake revealed that the first phase of the VAT reduction plan would be introduced in conjunction with the upcoming Budget, which is expected to outline the specifics of the tax adjustments.
This move is part of the government’s broader efforts to ease the financial burden on citizens and stimulate economic growth.
