An economic policy group led by four leading international expert economists has published an article urging Sri Lanka to reinstate three key policies to help reverse the current economic crisis.
Verité Research Sri Lanka Economic Policy Group, publishing its first article under its banner, recommended that the government restore the collection of Pay-As-You-Earn (PAYE) and Withholding Tax (WHT) (at 10%) and implement the agreed formula on cigarette taxation. According to the policy group, this, even without any increase in income tax rates, will help improve government revenue by 93.1 billion rupees in 2022 and 229.3 billion rupees in 2023.
“This represents more than 0.8% of GDP. This would take Sri Lanka a significant distance from achieving its revenue-to-GDP targets, which are an important step towards achieving macroeconomic stability,” Verité Research Sri Lanka Economic Policy Group said in its first statement. audience. The full article will be published live starting today and can be viewed on the Verite Research website.
Verité Research Sri Lanka’s core economic policy group is made up of four international and local economists, who are supported by several other economists and researchers working in Sri Lanka and outside.
Core group members are Professor Dileni Gunewardena, Professor of Economics (Chair) at the University of Peradeniya and non-resident member of Verité Research; Professor Mick Moore, political economist and full professor at the Institute of Development Studies and non-resident scholar at Verité Research; Dr. Nishan de Mel, Executive Director of Verité Research and Professor Shantayanan Devarajan, Professor of International Development Practice at Georgetown University’s Edmund A. Walsh School of Foreign Service and Nonresident Scholar at Verité Research.