News
VAT hike will send local business reeling, warns CCC
Sri Lankan businesses that cater to the domestic market alone would struggle as citizens will reduce consumption due to the increase in VAT and income tax, Chairman of the Ceylon Chamber of Commerce (CCC) Duminda Hulangamuwa said in a televised interview recently.
“With an 18 percent VAT and a 36 percent upper threshold in PAYE tax, people will reduce consumption. I told the government that an 18 percent VAT was too much. I told them it would be great if we can keep it at 15 percent. If people reduce the volume of consumption, the government will not be able to achieve tax goals, even if it increases tax to 25 percent,” he said.
Hulangamuwa said that given the current context, the government will have to borrow from the market to meet its needs. When that happens interest rates will go up, he said.
“In this context, tourism is the lowest hanging fruit. We need to change some laws, we need to develop our airport and try to increase the flights that are coming in. I think tourism is the easiest way for us to revitalize the economy. Boosting exports takes at least two to three more years at least,” he said.
Following the conclusion of bilateral discussions between President Anura Kumara Disanayake and Prime Minister of India, Shri Narendra Modi, official-level talks between the delegations of Sri Lanka and India commenced this morning (05) at the Presidential Secretariat in Colombo.
Representing the Government of Sri Lanka were Prime Minister Dr. Harini Amarasuriya, Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath; Minister of Labour and Deputy Minister of Economic Development, Anil Jayantha; Secretary to the President Dr. Nandika Sanath Kumanayake; Governor of the Central Bank of Sri Lanka, Dr. P. Nandalal Weerasinghe, along with other senior officials.
The Indian delegation included Minister of External Affairs Dr. S. Jaishankar, National Security Advisor Ajit Doval, Foreign Secretary Vikram Misri and His Excellency Santosh Jha, High Commissioner of India to Sri Lanka, along with several other senior officials of the Government of India.
Indian Prime Minister Shri Narendra Modi, who arrived in Sri Lanka on the invitation of President Anura Kumara Disanayake on Friday [04] night, visited the Presidential Secretariat this morning (05).
The Indian Prime Minister was warmly welcomed by President Anura Kumara Disanayake upon his arrival at the Presidential Secretariat.
Prime Minister Modi is currently on a state visit to Sri Lanka, reaffirming the theme “Friendship of Centuries — Commitment to a Prosperous Future” which symbolises the longstanding ties between Sri Lanka and India. The Indian Premier is scheduled to remain in the country until tomorrow (06).
[PMD]
The official welcoming ceremony for Indian Prime Minister Narendra Modi, was held this morning (05) at the Independence Square in Colombo.
On arrival at the Independence Square the Indian Prime Minister was warmly welcomed by President Anura Kumara Disanayake.
Discussions between Sri Lankan and Indian delegations at the presidential secretariat
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Indian Prime Minister Shri Narendra Modi arrives at the presidential secretariat
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