IMF mission says delay in VAT law may postpone review
Posted on September 26th, 2016


Sept 23, 2016 (LBO) – The IMF mission currently in Sri Lanka says they may have to postpone their review a bit if the proposed VAT legislation will get delayed in Parliament.

The mission head Jaewoo Lee however told reporters in Colombo that it will not be necessary under the current environment.

On the submission of VAT to Parliament, if it does not happen in a timely manner we might have to postpone the review a little,” Lee said.

But that will not be necessary.”

Lee expects Sri Lanka’s growth rate to be around 5 percent in broad terms next year.

The mission commended the authorities for implementing their IMF-supported economic program under difficult circumstances, with all quantitative targets through end-June being met.

However, some forward looking aspects of the program review, mainly related to the implementation of the tax reform package, need to be addressed without further delay, the mission said.

The mission welcomed the Central Bank’s move to preemptively raise policy rates to maintain inflation within its target band.

The mission and the authorities discussed plans for a transition to flexible inflation targeting as the monetary policy framework, possibly supported by IMF technical assistance,”

Discussions will continue in October in Washington D.C. during the Annual Meetings of the IMF and World Bank.”

The staff team from the International Monetary Fund visited Colombo during September 13-23, 2016 to hold discussions on the first review of the Sri Lankan authorities’ economic program that is being supported by a three-year Extended Fund Facility.


One Response to “IMF mission says delay in VAT law may postpone review”

  1. plumblossom Says:

    This UNP is trying to privatise state enterprises suggesting that they are loss making. I would like to point out to this treacherous UNP Government that they have no right to privatise any state enterprises since they belong to the people of Sri Lanka in general and is not their private property to privatise as they wish. If state enterprises are loss making, appoint a good management team to manage the state enterprise properly. This treacherous UNP Government is privatising state enterprises citing loss making as an excuse since they are also privatising even profit making state enterprises. Actually this UNP Government is selling all state enterprises to their friends in high places and to companies of those foreign powers who helped them come to power monetarily and via totally false propaganda during their election campaign and this is their pay back.

    We would warn any buyer of any state enterprises being privatised by this treacherous UNP Government that as soon as a a new Government comes to power, all these selling of state enterprises will be considered null and void and anyone who buys up any of these state enterprises will have to bear the loss of buying any state enterprise. Therefore we urge all potential buyers not to buy any state enterprise since as soon as a new Government comes to power, all such selling of state enterprises will be considered null and void and they will only end up making a loss.

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