Sri Lanka’s commercial banks are now faced with debt default issues of borrowers hit by unprecedented income tax and corporate tax hike with Non-Performing Loans (NPLs) increasing beyond its control, several general managers of banks complained.
Sri Lanka’s revenue in January is far below the expected increase of 69 percent due tax increases and not sufficient to meet all current expenditures except those payments pertaining to salaries, pensions, welfare, pharmaceuticals and debt servicing, official sources said.
Pakistan and Sri Lanka arrived at a consensus on ways and means of strategising a way forward to optimize bilateral trade and business activities within the context of the current economic scenario.
China's Foreign Ministry Spokesperson Mao Ning says the Export-Import Bank of China will provide an extension on the debt service to Sri Lanka due in 2022 and 2023.
