IMF stresses on levying property tax
Senior Mission Chief of the International Monetary Fund (IMF) in Sri Lanka Peter Breuer has pointed out that although Sri Lanka’s macroeconomy is gradually stabilizing, the country’s economic recovery is still at a developmental stage and hasn’t yet benefited the broader population.
Breuer also emphasized the potential of property tax as a means for Sri Lanka to make significant strides toward achieving the IMF program’s objectives. The Sri Lankan government had last year said that it plans to introduce the IMF prescribed property tax, applicable only to extensive property holders in 2025.
State Minister of Finance Ranjith Siyambalapitiya had said that the new tax will only be implemented following a thorough analysis.
A delegation from the IMF arrived in Sri Lanka on January 11th for a week-long engagement to assess the progress of economic reforms in the country, following the approval of the first review under the Extended Fund Facility (EFF) arrangement for Sri Lanka.
During a meeting with President Ranil Wickremesinghe, the IMF delegation commended Sri Lanka for successfully completing the first review of its program. They also recognized the positive trajectory of the program and acknowledged the challenging reforms that Sri Lanka has undertaken, which have had a significant impact on the country’s domestic population.