Friday Oct 03, 2025
Friday Oct 03, 2025
Friday, 3 October 2025 02:09 - - {{hitsCtrl.values.hits}}
Sajith Premadasa (right) with IMF Mission Chief
Evan Papageorgiou
Opposition Leader Sajith Premadasa yesterday urged the International Monetary Fund (IMF) to reconsider the Government’s decision to abolish the Simplified Value Added Tax (SVAT) scheme, warning that the move would deal a severe blow to Sri Lanka’s already fragile export-oriented industries.
Premadasa made the appeal during discussions with IMF Mission Chief Evan Papageorgiou and IMF Resident Representative Martha Woldemichael at his Colombo office.
He stressed that exporters, grappling with multiple challenges, cannot withstand the withdrawal of SVAT without a viable replacement mechanism.
Highlighting the broader economic context, Premadasa said nearly half of Sri Lanka’s population now lives in poverty, citing recent studies. While the IMF-backed program has spurred short-term consumption, he argued it has failed to stimulate investment, savings, production, or exports which are critical drivers of long-term growth.
He also raised concerns over the plight of small and medium-sized enterprises (SMEs), claiming they have been disproportionately affected by the parate law and the lack of effective debt restructuring or relief. Without targeted support, Premadasa warned, the country risks widespread business closures and job losses.
Calling for a “people-centred reform agenda,” the Opposition leader urged the IMF to back measures that not only ensure macroeconomic stability but also shield industries, safeguard employment and reduce poverty.
The meeting was attended by MPs Harsha de Silva, Kabir Hashim, Eran Wickramaratne, Rishad Bathiudeen, Rauff Hakeem, Harshana Rajakaruna, and S.M. Marikkar representing the Samagi Jana Balawegaya (SJB) and Samagi Jana Sandhanaya.
