Business
Report to be soon out on those who slip through the tax net
by Sanath Nanayakkare
Acting Minister of Finance Ranjith Siyambalapitiya told the media recently that he is making a report on tax evasions and ways to bring those who evade taxes under the tax net and the complete report would be presented to President Ranil Wickremesinghe on June1.
“Sri Lanka is one of the few countries in the world pursuing the hardest fiscal targets to restore stability, therefore, nothing matters more to reach these targets than maintaining the country’s fiscal discipline and this report is primarily aimed at increasing state revenue,” he said.
Further speaking he said:
“Sri Lanka has been carrying a large budget deficit over the years. The IMF has asked us to maintain our budget deficit at 13% percent of the Gross Domestic Product (GDP) if we are to get out of the serous fiscal imbalances. But the challenge here is currently this ratio stands at 25%. This means we have to cut the budget deficit by half in the next few years. This is going to be a very difficult task for the Ministry of Finance and the government. There are two ways to do it. One is by increasing state revenue and the other is by reducing state expenditure. At present there is no room for the government to increase state revenue through taxes because we have already come to a maximum tax-increase threshold. So what we have to do is expanding the tax base to ensure a structurally sound revenue level. There are people and businesses that make taxable earnings but still do not pay due taxes. They keep evading taxes.”
“These days I am making a report on how these individuals manage to slip through the tax net and how they can be brought under it. This report is also being made with the objective of eliminating the need for levying taxes from the same industries and investments and professionals and establishing a neutral tax code for all taxable entities and individuals. I will be handing this report to President Ranil Wickremesinghe on 1st June 2023,” he said.
The International Monetary Fund (IMF) said recently that Sri Lanka’s tax reforms were necessary for the cash-strapped country to regain the confidence of creditors, following which hikes in taxes and utility bills came into effect.
President Ranil Wickremesinghe who is also the finance minister hiked corporate tax to 30 per cent from 24 per cent in January 2023, after raising Value Added Tax (VAT) to 15 per cent last year. He introduced tax hikes with effect from January 2023 widely believed to be on demand by the IMF.
“Sri Lanka is among the countries to collect the least amount of fiscal revenue in the world, with tax revenue to GDP ratio at only 7.3 per cent in 2021. External creditors are not willing to provide financing to fill this gap”, the IMF said in a recent statement.
President Wickremesinghe said in Aranayake on May 20 that the IMF imposed tough conditions on Sri Lanka but the authorities had no other option but to seek its assistance.
“Similar conditions were presented to consecutive governments during negotiations with the IMF in the past and they withdrew from transactions with the IMF and I was one of them. But today we have to follow through the IMF programme as what is prescribed in it is what the country should do to achieve stability in the long term. I believe it will be possible to complete the debt restructuring programme by September this year, recommence paying our suspended loans and get rid of our declared bankrupt status,” he said.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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