Courtesy The Morning

If certain changes made by the private sector are successful, relief could be provided in the future, claimed Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe in reference to the calls for the removal of the recent tax package.

He stated so, during a discussion held with university professors and heads of economic departments about the International Monetary Fund (IMF) programme, at the Ministry of Finance recently.

Despite having gone to the IMF 16 times, success was not possible due to some improperly implemented conditions. Negotiations were used to increase taxes, and it is now impractical for the country to remove the agreements that were made. There are two ways to remove the tax package, but both require time: either collect more taxes from the people or increase the Government’s income and salaries. However, high-income earners are the ones criticising the situation, saying that they cannot afford it for six months”.

He also noted that value addition in the agricultural sector can lead to a significant income, observing however that in order for the younger generation to turn to agriculture, it must be made more efficient. Moreover, he observed that since young people going abroad at present are working in the service sector and not in agriculture, they too can earn an income by improving agricultural production. 

The manufacturing economy is the economic advantage a country gains by producing goods. The production of goods and services increases income from the gross domestic product. Although agriculture contributes only 7% to the economy, it employs 27% of the workforce. The development of both the manufacturing and service sectors is necessary for the country’s growth”.