Main Opposition MP Eran Wickramaratne last night said targets set by the IMF must be reasonable and achievable.

Responding to the President Ranil Wickremesinghe’s justification of new taxes, Wickramaratne said: “It is inevitable that tax revenues have to increase. Primary balance has been created only four times since Sri Lanka’s independence; twice in the 1950’s and in 2017 and 2018. Creating a primary balance is a clear indication of debt sustainability. This was possible in the recent past because macro-economic management was independent of Executive interference.”

However, Wickramaratne said IMF targets on primary balances need 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,” the SJB MP added.

Wickramaratne also said 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. “Suggest the 30% threshold on exports be revisited,” he emphasised.

President justifies tax hikes amidst criticism