President Ranil Wickremesinghe delivered a special statement on the IMF extended credit facility in Parliament today.
- Addressing Parliament a short while ago, President Ranil Wickremesinghe said that at a time when the country was in chaos in July last year, no one was willing to accept responsibility & he was requested to take over. “I had no power in Parliament, no Members of Parliament from my Party to call my own.” But, He said his strength was his conviction that he was capable of rebuilding the country.
- The receipt of the IMF Facility is a step towards building a better future for the youth & uplifting the country. The credit facility amounts to approximately USD 3 billion over 4 years, with the first tranche of USD 333 million will be received. Additionally, the country is expecting about USD 7 billion dollars more in rapid credit support from other parties.
- President Ranil Wickremesinghe told Parliament that the IMF EFF will restore Sri Lanka’s international recognition, ensure the country is not bankrupt and help banks regain international recognition. This will create opportunities for low-interest credit, restore foreign investors’ confidence and lay the foundation for a strong new economy
- President Wickremesinghe said that some people consider the IMF EFF as just another loan, while others claim that the total debt of the country cannot be paid off with the amount received. He noted that these statements show either ignorance or a willingness to betray the country for political gain
- The President said that amidst numerous hardships, bearing all kinds of pressure, and undergoing suffering with equanimity, the people of this country remained calm and patient. Their commitment was a great strength in achieving the IMF Facility. Therefore, he extended his gratitude to the people of this country
- “We are now starting a new journey. We have to introduce many economic reforms throughout the process. The foundation for our success will be through this path. Some of these reforms have already been proposed and implemented through the interim budget of 2022 and the budget for 2023. We will introduce numerous other reforms,” President Ranil Wickremesinghe told Parliament during his special statement
- The government aims to reduce the primary deficit to 2.3% of GDP by 2025 and increase revenue to 14% of GDP by 2026. The standard corporate income tax rate has been raised to 30%, and sectoral tax holidays have been eliminated. The PAYE tax rate has been raised from 12% to 15%, and the tax exemption limit has been reduced from Rs. 300 million to Rs. 80 million
- The President told Parliament a short while ago that the government plans to reduce existing tax exemptions on VAT by 2024, remove the simplified VAT system, and expedite its reimbursement. Estate Duty will be introduced as a property tax by 2025, with a minimum tax exemption allowance.
- The President said that with regard to good governance, the IMF is preparing a report to assess the governance framework & corruption in Sri Lanka, while laws against corruption in line with UN conventions will be drafted, together with a new Public Finance Management bill with strong fiscal policies and laws regarding foreign loans. The government plans to make public the list of individuals and institutions who enjoy tax concessions and tax holidays, & large-scale government procurement contracts. These measures aim to increase transparency and combat corruption in the country.
- Fuel prices will be decided only by the 2018 Fuel Price Formula & Electricity bill will be adjusted every 06 months – President Ranil Wickremesinghe said in Parliament
- Report of the IMF Extended Fund Facility to Sri Lanka tabled in parliament by President Ranil Wickremesinghe