Deputy Minister T.B. Sarath claims Sri Lanka has transformed from a debt-ridden, ignored nation into the world’s most admired island while promising lower VAT once the IMF program ends by 2027.
Deputy Minister T.B. Sarath declared at a recent public meeting that Sri Lanka, once dismissed by foreigners due to its financial crisis, is now being hailed as the most beautiful island nation in the world.
“When we came to power, people didn’t care about Sri Lanka. They called us bankrupt. They questioned if we had defaulted on loans. But now, this same country is being praised globally and was recently named the most beautiful among island nations,” he said.
He attributed this transformation to the stability and confidence brought about by the current government’s economic recovery program, even as the country remains under a strict financial agreement with the International Monetary Fund.
The Deputy Minister explained that despite public requests to reduce the cost of goods and Value Added Tax (VAT), such changes cannot be made immediately. “We are in a program with the IMF, and we must continue it for another three years. VAT reductions or price cuts are not possible during this time,” he stated.
He further mentioned that while the program is technically scheduled to conclude by 2028, the government aims to withdraw by 2027 as the treasury is expected to be financially strong by then.
“Once the economy stabilizes and our revenue improves, we can think about easing VAT and reducing the financial burden on the people,” Sarath assured.
The remarks reflect the government’s ongoing narrative that economic hardships are temporary and tied to larger, long-term fiscal strategies backed by global institutions like the IMF.
