ECONOMYNEXT – Sri Lanka President Ranil Wickremesinghe in his meeting with the IMF chief Kristalina Georgieva explained the issues faced by the local business community amid concerns over taxes in line with the global lender’s programme, Presidential Advisor Ruwan Wijewardene said.
Wickremesinghe met the IMF chief during his visit to the United States last week.
“They had a very good talk about what’s happening in Sri Lanka and specially what’s happening on debt restructuring,” Wijewardene, the Presidential Advisor on Climate Change who was with the president, told reporters at a media briefing on Monday (25) in Colombo.
“In that meeting, the president was also keen on how we can have an environment to help businesses survive this economic crisis.”
In return to a $3 billion IMF loan programme, Wickremesinghe’s government has agreed to raise taxes to an ambitious level and many businesses have openly complained over difficulties to continue the operations.
Despite higher taxes, government officials have said, the island nation’s revenue could fall short of the targeted 3.1 trillion rupees.
“When we go with an IMF programme, there are certain taxes and everything they tell us to do,” Wijewardena said.
“The president was quite keen on saying that some of these taxes, though they are necessary, it also creates issues for our business community. They had a very good mutual conversation and she also understood. But she is very keen to help Sri Lanka.”
The revenue short fall has been the key concern of the IMF during its first review, government officials have told EconomyNext.
An IMF delegation is in Colombo for the first review and is expected to speak to media on Wednesday, September 27.
When asked if Wickremesinghe spoke about the country missing some IMF targets, Wijewardena said “those were also spoken about”.
“But she understood what the reasons were and what the issues were. That all depends on the negotiations that are going on. They have understood all those issues, but she is very supportive on that.” (Colombo/September 26/2023)