IPS Executive Director Delivers CA Sri Lanka’s 23rd Annual Tax Oration
02 December 2019
Colombo, Sri Lanka
IPS Executive Director, Dushni Weerakoon, delivered the 23rd Annual Tax Oration at the invitation of the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), on the topic of ‘Tax Policy, Fiscal Consolidation and Growth Challenges in Sri Lanka’, on 02 December 2019.
She noted that finding the right tax structures to balance fiscal needs and growth-friendly economic outcomes is not easy. The decisions are not based on economic considerations alone; politics and voter preferences play a significant role in shaping a government’s approach to fiscal policy setting.
As Sri Lanka pays renewed attention to reviving growth through a fiscal policy stimulus through tax cuts and spending increases, any disruptions need to be carefully managed with the debt-outlook in mind. Thus, Dr. Weerakoon argued for modest public investment targets, whilst relying on private investment for growth and more FDI rather than loans to support infrastructure needs. She also noted that any short term disruptions to fiscal consolidation efforts should be backed by convincing medium term economic measures to retain investor confidence for effective debt sustainability.