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Verité Research unveils 10 budget proposals for revenue and growth
Pre-budget forum focuses on the pathway to revive Sri Lanka’s economy
Ahead of the presentation of the budget for 2024 to Parliament today (13 November), Verité Research has unveiled 10 Budget proposals designed to enhance revenue and revitalise growth in Sri Lanka.The proposals were announced at a forum titled ‘Budgeting for Revenue and Growth’ hosted by the think tank on Thursday (9), which facilitated a conversation on the pathway to revive Sri Lanka’s economy.
The forum featured presentations by Professor Mick Moore from the Institute of Development Studies – UK, Professor Shanta Devarajan from Georgetown University, Professor Udara Peiris from Oberlin College and Verité Research’s Executive Director Dr. Nishan de Mel, Research Director Subhashini Abeysinghe, Lead Economist Raj Prabu Rajakulendran, Lead Economist Mathisha Arangala and Lead Data Analyst Ashvin Perera.
In his opening remarks, Nishan de Mel underscored the importance of reducing interest costs while increasing revenue for sustainable economic recovery. He noted that the interest cost for 2024 projected in the upcoming Budget was LKR 234 billion higher than what was envisaged in the current IMF agreed economic recovery plan. He showed that Sri Lanka will continue to have the highest ratio in the world of interest cost to government revenue: currently above 70%, and remaining above 60% based on the projected 2024 budget.
The forum presented five proposals aimed at increasing revenue:
1.Increase the withholding tax rates from the existing 5% to 10%. – the proposal is expected to yield an additional LKR 90 billion.
2.Adopt the published rational formula for indexing cigarette taxes – the proposal is expected to add over LKR 35 billion.
3.Reverse sugar tax reduction and remove executive discretion on tax changes – the level of discretion allowed through the Special Commodity Levy Act, to the minister, led to what is commonly referred to as the ‘sugar scam’, immediately rectifying it (as had just taken place) can add over 25 billion.
4.Recover excess costs of Ceylon Petroleum Corporation through an increased tax on the whole industry rather than an increased price, above the internationally indexed formula, by the entity – the proposal will generate about LKR 25 billion in extra taxes collected from competing producers.
5.Implement the described method to estimate and collect property taxes – the proposal will initially increase tax collection by at least LKR 17 billion.
The next segment of the forum presented five proposals aimed at revitalising the economy:
1.Introduce state-funded maternity leave benefits (MLBs) – The private sector currently bears the full cost of maternity benefits, making it costlier to employ women. Research shows that state funded maternity leave reduces discrimination in recruitment, and boosts female labour force participation.
2.Protecting the poor with cash transfers and reforming state subsidies – better targeted transfers protects the vulnerable, and makes the allocation of subsidies more efficient, and effective.
3.Implementing trade facilitation targets — Sri Lanka has requested external assistance for 69% of the trade measures while least developed countries have, on average, asked for assistance for just 40% of the measures. Proposals were described to increase pro-active implementation.
4.Accede to the Madrid Protocol on trademark registration – this gives a much needed boost for exporters to go global with high-margin, value-added products, as it would Increase the speed and ease of international trademarks registration.
5.Actions to protect the Banking sector – Addressing banking sector risks requires joint actions from the central bank, the government and the International Monetary Fund (IMF) to implement proposals that include raising the deposit guarantee limit, establishing a Financial Stability Fund for liquidity injection during bank failures, and creating an asset management company for non-performing loans.
The segment on enhancing revenue was followed by a panel discussion featuring Nishan de Mel, Subhashini Abeysinghe, Professor Mick Moore and Professor Shanta Devarajan. The session was moderated by Inoshini Perera, Strategic Advisor to the Executive Director at Verité Research. The discussion highlighted the need to improve Sri Lanka’s risk perception to reduce its cost of borrowing, emphasising the need for better governance, including the restriction of discretionary powers in the executive arm of government. The panel also discussed the need to shift the composition of public expenditure on growth-promoting activities.
The segment on revitalising the economy was followed by a panel discussion that featured Nishan de Mel, Subhashini Abeysinghe, Professor Shanta Devarajan, Professor Udara Peiris and Country Managing Partner at Ernst and Young Sri Lanka Duminda Hulangamuwa. The session was moderated by Hemas Consumer Brands – Managing Director Sabrina Esufally. The panel emphasized the need for Sri Lanka to diversify its export sectors, reduce barriers to international trade, and seize economic opportunities in tourism, IT, ports and shipping infrastructure. The discussion also touched on the importance of addressing inefficiencies in tax collection and institutional processes.
Concluding the session, Nishan de Mel stressed the need for collective engagement and urgent attention to implement these proposals, among others, so that Sri Lanka might stave off a second debt episode of debt restructuring, and make the current recovery path effective and sustainable.
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Environmental laws will be enforced equally against everyone
Prime Minister Dr. Harini Amarasuriya stated that the Government was deeply saddened by the unfortunate death of the Tusker Kavanthissa, a national treasure who sustained severe injuries from gunshot wounds. She emphasised that environmental laws would be strictly enforced against those responsible for environmental crimes, without discrimination or favouritism.
The Prime Minister made these remarks while addressing the Presidential Environmental Awards 2026, organised for the 11th time by the Central Environmental Authority under the Ministry of Environment, at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo on Monday (19 October).
A total of 195 awards, comprising Gold, Silver, Bronze and Merit Awards, were presented to institutions recognised for their sustainable management of natural resources. The Prime Minister participated in presenting the Gold Awards.
Addressing the occasion, the Prime Minister stated:
“A country’s prosperity is measured not only by its economic indicators. Clean air, safe drinking water and a healthy ecosystem are equally essential to ensuring a better quality of life for its people.
The Clean Sri Lanka programme, launched with this objective, is not merely about cleaning roads. It is a national transformation aimed at reducing waste, ensuring proper waste management and changing the way we think about and treating the environment.
We cannot allow tragedies such as the one that befell Tusker Kavanthissa to happen again. Environmental laws must not be influenced by a person’s position, wealth or connections. The law will be enforced equally against everyone. Everything from the issuance of licences to the approval of projects must be carried out on the basis of scientific evidence and with complete transparency.
Development achieved at the expense of environmental destruction can never be considered sustainable development. Wildlife officers and veterinary teams made significant efforts to save the Tusker Kavanthissa. However, the Tusker could not be saved due to the severity of its injuries and the resulting infections.
The Government is deeply saddened by this loss. In order to prevent similar incidents in the future, we will further strengthen veterinary care for wildlife and veterinary education. The Government has already taken a number of practical measures to address the long-standing human-elephant conflict.
Accordingly, 113 forest areas have been designated as reserves, bringing 71,900 hectares (approximately 180,000 acres) under protection. In addition, three elephant corridors are being established to facilitate the free movement of elephants, alongside a dedicated reserve for elephant management.
In order to strengthen the field operations of the Department of Wildlife Conservation, 100 pickup vehicles, 185 motorcycles and nine tractors have been provided. Furthermore, 3,500 elephant fence assistants and 5,000 members of the Civil Security Department have been deployed to maintain elephant fences.
Steps have also been taken to amend the National Environmental Act after 26 years. More than 1,600 new officers are being recruited to the Ministry of Environment.
Environmental conservation must not be treated as a temporary project. It must become an essential component of government policy and the daily lives of every citizen. It is vital to support small and medium-sized enterprises in adopting green technologies, promoting practical environmental skills through school and university education, and fostering environmental responsibility through religious institutions. We seek the support and cooperation of the entire public to ensure that we leave behind a safe, beautiful and clean country for future generations.
The event was attended by Minister of Environment Dhammika Patabendi; Minister of Industry and Entrepreneurship Development Sunil Handunnetti; Deputy Minister of Environment Anton Jayakody; Secretary to the Ministry of Environment K. R. Uduwawala; Chairman of the Central Environmental Authority, Professor Tilak Hewawasam; and a large gathering of government officials, foreign representatives and award recipients.
Prime Minister’s Media Division
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President pays last respects to Most Venerable Kappetiyagoda Siri Wimala Thera
President Anura Kumara Dissanayake today (20) paid his last respects to the remains of Most Venerable Kappetiyagoda Siri Wimala Thera, Anunayake of the Sri Lanka Ramanna Maha Nikaya and Chief Incumbent of the Rajopawanaramaya Temple in Gatambe, Kandy, who passed away.
The President visited the Rajopawanaramaya Temple in Gatambe, Kandy, where the remains of the Thera are lying, and paid his last respects. He subsequently expressed his deepest condolences to the Maha Sangha and the temple’s Dayaka Sabha, who are mourning the passing of the Thera.
Central Province Governor and Consultant Physician Dr Harsha Suranga Fernando, Kandy District Secretary Indika Udawatta and several others were present.
President’s Media Division (PMD)
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Ranawaka accuses govt. of using JVP cadres and police to suppress political opponents
… reminds AKD led over 560 protests during Yahapalanaya
Former Yahapalana Minister and United Republican Front (URF) leader Patali Champika Ranawaka yesterday (19) alleged that the JVP, which carried out over 560 protests during the 2015-2019 period, was now bent on preventing the Opposition from exercising its democratic right to protest.
Recalling the declaration made by the JVP at the height of the violent protest campaign in July 2022 that it would set the Parliament ablaze, the former parliamentarian lashed out at the JVP-led administration for using the police excessively to curb political opposition. Ranawaka said this while addressing the media at the former President Ranil Wickremesinghe’s Flower Road Office .
Commenting on the protest campaign launched by the Maha Sangha, demanding presidential pardon for General Secretary of the Bodu Bala Sena (BBS) Ven. Galagotaatte Gnanasara, the ex-Colombo District lawmaker alleged that President Anura Kumara Dissanayake used a combination of police, investigative units and JVP cadres to break up the monks’ protest. The government went to the extent of compelling the JVP/NPP-run Colombo Municipal Council (CMC) to deprive the peaceful protesters of basic toilet facilities, he alleged.
The government’s actions proved that only those with prior approval from JVP Pelawatte headquarters could launch protests in Colombo, its suburbs or in the provinces. The police have become a political tool in the hands of the JVP, the ex-Minister said. (SF)
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