Today Good News: Planning to revise VAT percentage to further support economic growth

prasanna1992

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  • Apr 18, 2018
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    The government was planning to reduce the tax burden as economic reforms continue to stabilize the economy, President Ranil Wickremesinghe said in his Policy Statement in Parliament today.

    “We are also revising the VAT percentage to further support economic growth,” he added.

    Delivering the government's Policy Statement in Parliament, he said the tax registration has substantially increased, with the number of registrations growing from 437,547 in 2022 to 1,000,029 by the end of 2023, representing a 130% increase.
    - daily mirror

    Sri Lanka pursues Free Trade Agreements to boost economic growth

    The Sri Lankan government is currently engaged in discussions to establish free trade agreements (FTAs) with India, Indonesia, Malaysia, Vietnam and China by the end of 2024, according to the Minister of Foreign Affairs.

    Foreign Affairs Minister Ali Sabry highlighted the potential of these agreements to open up new markets for Sri Lankan businesses, thus directly contributing to the nation’s economic expansion.

    Speaking at a press briefing held at the President Media Centre (PMC) today (06), Sabry emphasized the government's commitment towards diversifying trade partnerships and fortifying economic resilience through strategic FTAs. He stressed that these agreements aim to broaden market access and bolster trade, thereby laying the groundwork for a more robust and sustainable economic future for Sri Lanka.

    Sabry also underscored Sri Lanka's lag behind regional competitors such as Vietnam and Bangladesh in terms of exports. While Vietnam boasts exports totaling $370 billion and Bangladesh $60 billion, Sri Lanka struggles with a significantly lower figure ranging between $12-14 billion. Sabry attributed Sri Lanka's export challenges primarily to limited market access.

    Unlike Sri Lanka, Vietnam and Bangladesh actively pursued expansion into larger international markets through FTAs, fueling their export-driven growth and surpassing Sri Lanka in the process.

    In a recent development, Sri Lanka inked an FTA with Thailand. Sabry highlighted that this agreement has granted Sri Lanka access to a market worth USD 2.2 billion, signifying a step forward in the country's trade objectives.
    - daily mirror
     
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