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Sri Lanka Finance Minister meets IMF mission ahead of budget

ECONOMYNEXT – Sri Lanka’s Finance Minister Ravi Karunanayake has met a visiting mission from the International Monetary Fund at his office on September 09 ahead of budget in November.

The mission had discussion on estimates and the planned implementation of the 2016 budget, a statement said.

Sri Lanka is now in the throes of a balance of payments crisis, with the rupee sliding from massive money printing to finance a revised budget in January 2015, which has also triggered capital flight.

The revised budget could Sri Lanka’s investment propects in the future if proposed penal retrospective and one-off income taxes are passed in parliament by the new administration analysts have warned.

It has opened a pandora’s box for future members of the elected ruling class to increase spending, hurt domestic businesses by one-off taxes and undermine rule of law.

One off taxes that can bankrupt firms also go against principles of public finance practiced in South Asia since the Gupta empire, they have said. (Colombo, Sept10/2015)

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