ECONOMYNEXT – Sri Lanka President Anura Kumara Dissanayake criticised the past governance that led the island nation to become the bad child of the IMF and its policies being externally controlled.
President Dissanayake stated this on Monday (02) while addressing the inaugural ceremony of the national programme titled “Tax Power’ to enhancing tax compliance and broadening the tax base in a move to create more awareness about why people should pay tax.
“Because we were unable to overcome this crisis on our own, we have become subject to external control,” he said referring to the economic crisis in which Sri Lanka’s revenue plummeted to less than 8 percent of the GDP in 2022 from over 20 percent in mid 1990s.
“We are being managed from above. Our revenue targets are now set for us. This year, the national income must grow by 15.1%. Of that, 2.3% must be maintained as a primary surplus,” he said referring to the IMF targets in return for $3 billion external credit facility (EFF).
“We have to manage the economy according to expenditure limits and revenue targets agreed upon by external parties. Why? Because we were the “bad child.” Now, we have been punished and placed under guardianship. Our economy and assets are under guardianship.”
“Are we to remain an economy always under such guardianship? Certainly not. In a discussion with Mr. Mahinda Siriwardhana, Secretary to the Ministry of Finance, the consensus was reached that this should be regarded as the final stage of entering the International Monetary Fund’s extended loan programme.”
“We must embark on an economic journey based on our own criteria and targets. Therefore, our firm determination is to bring this to an end this phase of the IMF extended loan programme and move forward.”
He said the country’s revenue must be increased to get rid of the crisis.
“A large portion of this revenue comes from taxes. The bulk of tax collection and administration falls on the Department of Inland Revenue, the Department of Customs and the Excise Department. Therefore, as taxpayers, tax collectors, and tax administrators, let us work together to succeed in this effort. Let us strive to transform an economy under guardianship into a sovereign economy with full independence.” (Colombo/June 03/2025)