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“Oppressive tax policies undermining SL’s Economic Recovery”: Moragoda
Milinda Moragoda, Founder of the Pathfinder Foundation, released a statement saying Sri Lanka’s present oppressive tax regime is undermining the country’s economic growth agenda. Moragoda says, furthermore, many local entrepreneurs and businesses that can afford it are relocating abroad, and new investments have decreased significantly.
Full text of the statement: “While the demand compression it has created has, to an extent, stabilized the economy, it has made the poor more destitute and is driving the middle class towards poverty. Adversely affected professionals, skilled workers, and others are reluctantly leaving the country in large numbers, exacerbating the brain drain and reducing our workforce.
“Furthermore, many local entrepreneurs and businesses that can afford it are relocating abroad, and new investments have decreased significantly. For these reasons, this tax regime is counterproductive to economic growth and unsustainable. All forecasts indicate that Sri Lanka will not be able to grow at more than 3% for the next eight years or so.
“If this situation is to be corrected, the rate of taxation will have to be brought down. However unpalatable it may be, this can only be achieved through a combination of deep reforms that will lead to small government (by reducing public expenditure), accelerated privatization, large-scale foreign investment, increased connectivity at both a regional and global level and, in general, creating a more business and investment-friendly climate.
“In Sri Lanka, the vested interests are such that many of these proposed reforms will require strong political resolve to be implemented. Furthermore, Sri Lanka must diversify its income streams beyond worker remittances, garments, tourism, and commodities to include new sectors. It is time for Sri Lanka to modernize its economy.
“We have to realize that in the high-income countries of the Organization for Economic Cooperation and Development (OECD), the average corporate income tax rate fell from 47% in 1980 to 23% in 2021. Many countries have cut tax rates on dividends, capital gains, and estates, and most countries that once had annual wealth taxes have abolished them. Unfortunately, Sri Lanka is going in the opposite direction, with wealth and estate taxes now being contemplated.
“With national elections on the horizon, it is incumbent upon all political parties to step up and present proposals that outline a clear trajectory that will steer us towards economic recovery. It is high time that all political parties take this responsibility seriously and present a comprehensive set of proposals on tax policies. These proposals should aim to bring down individual, corporate, and value-added taxes, and other levies to levels that will make Sri Lanka competitive, spur growth, and create rapid development.
“Especially for countries like Sri Lanka, which have a bloated government sector, the path of least resistance is to increase revenues through taxation and tariffs to meet their day-to-day requirements to avoid long-needed reforms that go to the root of the problem. However, Sri Lanka cannot afford to continue on this path for the above reasons. A low-tax, growth-oriented, investor-friendly regime that is both fair and equitable to all Sri Lankan citizens and has a well-designed and targeted social safety net to protect the poor and vulnerable must be put into place.”
News
Iranian ships stranded, Lanka fears US sanctions
‘Companies may face US sanctions’: Lanka to put ‘national interest’ first as 19 Iranian vessels seek help
(ToI) Sri Lanka said on Friday it would “prioritise our national interests” before providing assistance to the crews of 19 Iranian ships anchored in international waters near the island nation.The crews are facing shortages of food, water and fuel. A foreign ministry spokesperson cited the risk of US sanctions against Sri Lankan companies supplying the vessels as a key concern.
The United States and Iran have been at war since February 28, when the US and Israel launched joint strikes against the Islamic Republic.
“Sri Lanka will put its national interest first before considering any help, and the companies that supply ships are aware of possible secondary sanctions from the United States,” spokesperson Thushara Rodrigo told reporters, ruling out any immediate assistance to the vessels.
Rodrigo clarified, however, that Sri Lanka had received no communication from the United States warning of repercussions if it decided to assist the vessels.According to Rodrigo, the ships are stationed 24 nautical miles off Sri Lanka’s coast.The Iranian Embassy said it had no information on the matter.
In March, a US torpedo attack sank the Iranian naval vessel IRIS Dena in Sri Lankan waters, killing 87 sailors.
The ship was returning to Iran after participating in a naval exercise at India’s invitation. A second Iranian vessel was brought to a Sri Lankan port after its crew reported technical problems.
Wounded sailors were treated at Sri Lankan hospitals, while those rescued from the second vessel were safely repatriated to Iran.
Sri Lanka is still recovering from an economic crisis, with both the United States and Iran serving as important trading partners. Washington played a key role in securing an International Monetary Fund bailout and supporting Sri Lanka’s agricultural sector to help avert a food crisis.
News
Sri Lanka CERT warns of overseas university admission scams
Sri Lanka CERT has warned the public of fraudulent social media advertisements offering admission to foreign universities after receiving complaints from parents and students who have lost hundreds of thousands of rupees to scammers.
The fraudsters reportedly pose as representatives of reputed foreign universities, promising admission, student visas, work permits and even eventual citizenship in return for registration fees and initial tuition payments.
They use convincing videos, photographs and documents circulated via email and WhatsApp to gain the confidence of unsuspecting victims before asking them to transfer money to foreign bank accounts. The scammers then disappear after receiving the payments, Sri Lanka CERT said.
The agency has urged prospective students and their parents to verify the authenticity of university representatives, documents and bank account details before making payments, and to seek overseas education opportunities only through legitimate and recognised channels.
News
Navi Pillay’s Lankan affairs in focus as she wins 2026 Nobel Peace Prize
Former UN High Commissioner for Human Rights and International Court of Justice judge Navanethem “Navi” Pillay has won the 2026 Nobel Peace Prize for her contribution to international law and efforts to promote peace, the Norwegian Nobel Committee announced in Oslo on Friday.
Announcing the award, committee chairman Jørgen Watne Frydnes said Pillay had “significantly enlarged the scope and impact of international law” and helped advance “a more comprehensive global legal order” with exceptional courage. He also praised her long career, which began as a lawyer confronting deep-rooted discrimination in South Africa, and described her as a person with a “firm moral compass”.
Pillay, 85, served as the UN High Commissioner for Human Rights from 2008 to 2014. Her tenure brought her into sharp focus in Sri Lanka, particularly over her assessment of the country’s human rights situation in the aftermath of the decades-long civil war.
During an official fact-finding visit to Sri Lanka from August 25 to 31, 2013, Pillay travelled to areas including Jaffna, Kilinochchi and Trincomalee, where she met civil war survivors, families of the disappeared and local communities.
Following the visit, she warned that Sri Lanka was moving towards authoritarianism and highlighted what she described as a persistent climate of fear.
She also reported intimidation and harassment of people who had sought to meet her during the mission.
Pillay urged the UN Human Rights Council to establish an international inquiry mechanism to investigate alleged war crimes and crimes against humanity committed by both government forces and the LTTE during the final stages of the 26-year civil war.
Her observations and recommendations became a significant part of international scrutiny of Sri Lanka’s post-war human rights record.
The Norwegian Nobel Committee received 287 nominations for this year’s Peace Prize, slightly more than a quarter of them being organisations. The committee traditionally considers efforts to promote peace, international fraternity and institutions that contribute to lasting stability.
Last year, Venezuelan opposition leader Maria Corina Machado won the prize for her campaign for a democratic transition in Venezuela. She was praised as a woman who kept the flame of democracy burning amid growing darkness.
The 2026 award marks the 125th anniversary of the Nobel Peace Prize, first presented in 1901. Over its history, the prize has recognised prominent figures and organisations involved in advancing peace, human rights and international cooperation.
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