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Peter Breuer - Tax revenue should be growth friendly – IMF - newsfirst.lk - Sri Lanka
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Tax revenue should be growth friendly – IMF
COLOMBO (News 1st); The International Monetary Fund said that Sri Lanka must increase tax revenue in a growth friendly manner. Peter Breuer, the Senior IMF Mission Chief for Sri Lanka, told reporters that the current economic crisis has a number of origins including the governments' inability to meet government spending needs through revenue collection and Sri Lanka is among the countries that collect the least amount of fiscal revenue in the world. He said that Tax Reforms are badly needed to correct the imbalance, and only with appropriate tax receipts will the government be able to fund essential expenditures, and avoid further slashing critically important outlets. "These reforms will also help regain the confidence of the creditors, so that in the future they will once again finance the gap between revenue and expenditure," he said.Peter Breuer further said that it is important that those who can afford it may commence contributions to the financing of necessary government expenditures."The tax package the authorities have introduced including the new tax rate schedule for Personal Income tax helps to meet the objectives. The tax rates proposed under the authorities program are also inline with similar countries who are contributing to Sri Lanka's support package, through the IMF," he said."So it is important to remember that there are many countries who have income levels comparable or may be less than Sri Lanka with much higher tax rates.
Sri Lanka’s Social Safety Net programs suffer from poor targeting – IMF - newsfirst.lk - Usa - Sri Lanka
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Sri Lanka’s Social Safety Net programs suffer from poor targeting – IMF
COLOMBO (News 1st); The International Monetary Fund on Tuesday (21) said that the Extended Fund Facility (EFF) arrangement for Sri Lanka sets a minimum spending floor by the government on the social safety net program.The International Monetary Fund (IMF) Executive Board on Monday (20) approved SDR 2.286 billion (about US dollars 3 billion) under the Extended Fund Facility (EFF) to support Sri Lanka’s economic policies and reforms.The IMF report on the EFF noted that Social Safety Net (SSN) programs in Sri Lanka are fragmented, with several implementation agencies, which has led to a lack of ownership and widespread inefficiencies in delivery of SSN programs.Masahiro Nozaki, the IMF Mission Chief for Sri Lanka said the EFF program said that Sri Lankan authorities have committed to SSN spending of Rs. 187 billion (0.6 percent of GDP) in 2023.Sri Lanka’s SSN programs monitored under the EFF-supported program comprise the Samurdhi program (largest poverty-targeted cash transfer program in Sri Lanka), as well as assistance to the elderly (over 70 years), allowance for disabled people, and financial support for kidney patients.Masahiro Nozaki highlighted that Sri Lanka's Social Safety Net program suffer from poor targeting."Right now the social safety nets cover about 40% of poorer households, that should be significantly increased and some social safety net spending is going towards relatively rich families.
Ranil Wickremesinghe - IMF approves Sri Lanka’s bailout package under EFF; Sri Lanka can access up to $ 7 Bn - newsfirst.lk - China - Usa - India - Sri Lanka
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IMF approves Sri Lanka’s bailout package under EFF; Sri Lanka can access up to $ 7 Bn
COLOMBO (News 1st); The IMF Executive Board approved Sri Lanka’s program under the Extended Fund Facility (EFF) that will enable Sri Lanka to access up to $7 billion in funding, reported the President's Media Division.President Ranil Wickremesinghe has expressed his gratitude for the support of the IMF and other international partners, said the PMD.It added that the President committed to full transparency in all discussions with financial institutions & creditors, & to achieve sustainable levels of debt through prudent fiscal management & an ambitious reform agenda.The IMF program is critical to achieving this vision & will help to improve Sri Lanka's standing in international capital markets, making it an attractive country for investors, talent, & tourists, said the President's Media Division.Earlier this month, Sri Lanka received IMF-compatible financing assurances from its official creditors, including Paris Club members, India and China, allowing the IMF to convene an Executive Board and consider Sri Lanka’s request for a loan.The program is expected to provide much-needed policy space to drive the economy out of the unprecedented challenges and instill confidence amongst all the stakeholders.President Ranil Wickremesinghe welcomed the announcement:“In the 75 years of Sri Lanka’s independence, there has never been a more critical period for ou economic future. Our official creditors have declared their support following continuous and positive engagements over the last few months, and we are pleased that the IMF Executive Board approved our program, enabling Sri Lanka to access up to US$ 7 billion in funding from the IMF and IFIs.
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