• There is a  possibility of more tax hikes

By Yohan Perera and Ajith Siriwardana   

Whilst expressing his happiness about the finalising of a  staff-level agreement with the International Monetary Fund (IMF), Samagi  Jana Balawegaya (SJB) MP Harsha de Silva said there is much to be done  to put the country’s economy in order.   

“Sri Lanka will have to go for discussion with creditors to  get debts rescheduled. Around 20 per cent of Sri Lanka’s debt accounts  for credit drawn from China. Therefore Sri Lanka will have to begin  discussion with that nation. In addition, talks will have to begin with  other creditors such as India and institutions such as ADB, and World  Bank. Only successful talks with the creditors would enable the IMF  Executive Directors to approve the staff level agreement,” Dr. de Silva  said in his Facebook comment.    

“Sri Lanka will have to go for major economic reforms  such as increase of taxes, changing of policies such as the exchange  rate policies. IMF has asked for the introduction of a market-based exchange rate, It had also recommended that Sri Lanka should ensure a  2.5 capital account surplus in the coming years, There is a  possibility of more tax hikes. IMF has further asked for new laws to curb corruption.