Strengthening Sri Lanka’s SSB Regulations: Addressing the Rise of Non-Sugar Sweeteners
Non-communicable diseases (NCDs) accounting for nearly 75% of all deaths, have emerged as a major health challenge in Sri Lanka over the past few decades. Unhealthy dietary patterns – including excessive intake of sugar, salt, and fats – continue to play a significant role in this escalating issue.
VAT Hike in Sri Lanka: Who Really Pays the Price?
Earlier this year, Sri Lanka introduced major changes to the Value Added Tax (VAT) system. The VAT rate increased from 15% to 18%, and tax exemptions were removed for 97 items, including essential goods such as gas and stationery. While these revisions aimed to boost government revenue, they have also significantly increased the tax burden on low-income households, making life even more challenging for the most vulnerable during this ongoing crisis. This blog offers a comprehensive overview of the recent VAT revision and potential solutions for easing the VAT burden in Sri Lanka.
Easing Sri Lanka’s Fiscal Burden: Who Needs a State Pension?
The recent economic crisis has highlighted the need to address weaknesses in Sri Lanka’s economic policies for long-term structural change. One significant issue is the financial burden of public sector pensions. The Public Services Pensions (PSP) is the largest pension scheme for permanent public sector employees in Sri Lanka. With around 700,000 public sector pensioners, this system places a significant financial burden on the government. On top of that, an IPS analysis reveals that public service pensions are not a progressive welfare programme, with half of the pension benefitting the top 20% income bracket. Such obligations further exacerbate inefficient fiscal policies, constraining resources available for crucial areas like health and education services. This blog aims to provide a comprehensive overview of the current challenges and potential solutions for easing the pension burden in Sri Lanka.
Sri Lanka’s Battle Against NCDs: Is the Sugar-Beverage Tax Doing Enough?
Non-communicable diseases (NCDs) lead to around 120,000 deaths in Sri Lanka each year, constituting 83% of the overall recorded deaths. The revised National Policy and Strategic Framework for the Prevention and Control of NCDs is a positive initiative by the government to address this. Such policies can play a crucial role in promoting healthier lifestyles, preventing NCDs, and improving overall public health. However, the question that lingers is, how effective are the existing measures, and where can we make improvements?
In the battle against NCDs, the government implemented a crucial policy in 2017 – the Sugar-Sweetened Beverage (SSB) tax. This tax aimed to curb the consumption of SSBs closely linked to health problems like obesity, diabetes, and dental issues. While this measure holds great promise, evaluating its effectiveness is difficult owing to data gaps. However, an IPS analysis of how SSB taxes are helping to reduce their consumption in Sri Lanka provides some initial insights.
Traffic Light Labels: Do They Promote Healthier Food Choices in Sri Lanka?
In line with globally recommended practices to reduce the dietary risk of non-communicable diseases (NCDs), the Sri Lankan government implemented a traffic-light labelling (TLL) system for sugar-sweetened beverages (SSB) in August 2016. The purpose of the regulations was to educate the public on the sugar content in SSBs to promote healthy diets in Sri Lanka and reduce NCDs associated with a high sugar intake. Six years on, it is time to assess the effectiveness of TLL in encouraging healthier food choices. Based on an ongoing IPS study – ‘Strengthening Fiscal Policies and Regulations to Promote Healthy Diets in Sri Lanka’ and written ahead of World Health Day 2022, this blog – discusses consumers’ knowledge of TLL and how it impacts their SSB choices.
Demystifying Hawala/Undiyal – The Not So Dismal Science:[…] believed that informal fund transfer operations in Sri Lanka have expanded considerably due to the wide gap between the…