The International Monetary Fund (IMF) has recommended that the Sri Lankan government raise its state tax revenue by an additional 4%, bringing it up from the current 11% of the country’s gross domestic product (GDP) to 15%, according to a special report published by the BBC. This recommendation is part of ongoing efforts to stabilize Sri Lanka’s economy.
Last year, the government implemented a tax rate hike, and as of 2023, it has collected 144 billion rupees in tax revenue. This amount exceeded the government’s initial target of 100 billion rupees by 44 billion, showing a significant increase in tax collection.
The IMF’s recommendation is aimed at further boosting government revenue in the coming years, with the goal of improving the country’s fiscal health and addressing its ongoing economic challenges. The Sri Lankan government has been tasked with implementing these recommendations as part of its broader economic recovery plan.
