Eran criticises Govt.’s revenue shortfall

• SJB MP Eran Wickramaratne says Govt. revenue target unrealistic due to lack of progress in measures to boost revenue
• Argues absence of queues for essential goods does not equate to economic stability
• Criticises Govt. for misleading citizens on economic improvements
• Urges voters to recognise need for leaders with expertise in navigating economic challenges

SJB Parliamentarian Eran Wickramaratne on Sunday expressed concerns over the Government’s failure to meet its 2023 revenue targets, despite entering into an agreement with the International Monetary Fund (IMF) to increase State revenue and cover the budget deficit to avert bankruptcy.

A recent Government report confirmed that the revenue for 2023 did not reach the projected levels.

Wickramaratne pointed out that while the Government anticipated a tax revenue of Rs. 3,104 billion for 2023, it only managed to collect Rs. 2,069.5 billion. He highlighted specific shortfalls: the Inland Revenue Department expected Rs. 1,667 billion but received Rs. 1,550 billion; Sri Lanka Customs aimed for Rs. 1,220 billion but achieved Rs. 974 billion; and the Excise Department forecasted Rs. 217 billion but collected Rs. 171 billion. 

“The Government’s inability to achieve the expected revenue targets is a significant defeat,” Wickramaratne stated. He added that for 2024, the Government has set an ambitious revenue goal of Rs. 3,789 billion, requiring an increase of Rs. 1,093 billion from the previous year. “This goal appears unrealistic given the lack of progress in measures to boost Government revenue,” he remarked.

Wickramaratne criticised the Government’s portrayal of economic improvement by pointing out the absence of queues for essential goods, arguing that this does not equate to economic stability. “Saying the economy has improved because there are no queues is misleading,” he warned.

Reflecting on the escalating cost of living, Wickramaratne noted that prices of staple goods such as rice, sugar, dhal, and flour have increased by over 300% since 2019. Additionally, he mentioned that the price of a litre of petrol has surged from Rs. 117 to an unimaginable level today, with similar hikes in diesel and gas prices.

Wickramaratne also criticised the Government’s promises to raise salaries and allowances for public service groups, as well as increase social welfare, despite failing to meet revenue estimates. “The Government makes endless promises while pushing the country further into bankruptcy,” he cautioned.

Drawing a parallel to British history, Wickramaratne referenced Prime Minister Winston Churchill, who led Britain to victory in World War II but was replaced by Labour Party leader Clement Attlee in the subsequent general election. “The British people understood that while courage is needed to win a war, different skills are required to manage an economy,” he said. “Sri Lankan voters mistakenly believed that a war hero could also win an economic war, leading the country into an economic abyss post-war.”

In conclusion, Wickramaratne urged voters to recognise the need for leaders with the expertise to navigate economic challenges, stressing that the current administration’s mismanagement has had severe consequences for the nation’s financial stability.