Targets set by IMF must be reasonable and achievable – Eran

SJB parliamentarian Eran Wickramaratne says that the International Monetary Fund (IMF) targets on Sri Lanka’s primary balances needs to be revisited by providing a longer period to achieve the target.

Commenting on the President’ss statement on increasing of taxes, he said that it is inevitable that tax revenues have to increase. Primary balance has been created only 4 times since Sri Lanka’s independence; twice in the 1950’s and in 2017 and 2018, he said.

Creating a primary balance is a clear indication of debt sustainability, he said, adding that this was possible in the recent past because macro-economic management was independent of executive interference. 

“However, IMF targets on primary balances needs to be revisited by providing a longer period to achieve the target. Targets must be reasonable and achievable, if Sri Lanka is to succeed on its 17th agreement with the IMF,” he said.

The MP said that whilst the move from indirect taxes to direct taxes is inevitable in cushioning the poor and vulnerable, given the foreign currency crisis the taxation on exports should be implemented gradually. He suggested for the 30% threshold on exports to be revisited.