Sri Lanka aims to hike taxes in budget to soften crisis

By BHARATHA MALLAWARACHI
Associated Press

COLOMBO, Sri Lanka (AP) — Sri Lanka’s president has proposed to more than double the country’s tax revenue as the island nation struggles to come out from its worst economic crisis. Unsustainable debt, a severe balance of payment crisis on top of lingering scars of the COVID-19 pandemic have led to a severe shortage of essentials such as fuel, medicine and food, and the soaring prices have caused severe hardships to most Sri Lankans. Presenting the annual budget in Parliament, President Ranil Wickremesinghe on Monday put the country’s plight down to the reduction of government revenue and stressed the need to increase it. He said the revenue has declined significantly to 8.3% of the GDP in 2021, which he said was one of the lowest in the world.