IMF urges Sri Lanka to address tax reforms without delay

Source : REUTERS
Last Updated: Fri, Sep 23, 2016 17:00 hrs

COLOMBO, Sept 23 (Reuters) - The International Monetary Fund (IMF) said on Friday that Sri Lanka's government, which has failed to raise taxes as promised when it received a $1.5 billion loan from the lender in June, needs to implement a tax reform package without delay.

An IMF mission, which concluded nearly two weeks of discussions with authorities, commended Sri Lanka for implementing the IMF-supported economic programme under "difficult circumstances" and had met all June-end targets.

"However, some forward looking aspects of the programme review, mainly related to the implementation of the tax reform package need to be addressed without further delay," Jaewoo Lee, the mission head. told reporters in Colombo.

The government has delayed implementation of tax hikes expected to take effect May 2, due to two Supreme Court rulings. The government is considering to bring an amended tax hike proposal in the near future after addressing public concerns. (Reporting by Ranga Sirilal; Writing by Shihar Aneez; Editing by Richard Borsuk)

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