Kathmandu, May 5
Due to the bad economic circumstances, Sri Lanka’s finance minister Ali Savari raised alarm on Wednesday that the country’s foreign exchange reserves are currently less than 50 million US dollars. According to the Colombo Post, Savari told the Sri Lankan parliament that if the economic crisis did not end, it may constitute a significant threat to the country.
He explained ”All governments operated on the basis of a dependence mentality. A long-term debt burden has resulted in this situation. As reported by the Colombo Post, the incorrect policies of our time may have contributed to this.”
In parliament, the finance minister expressed his position that the income tax rate should be raised in the future. He also asked working people to give a percentage of their income to the government. ”Those who earn should make some contribution in the current situation when the society itself has been damaged,” Savari remarked. In the next two to three years, income taxes will have to be raised by roughly 15%.
The finance minister stated at the time that the progress report of the discussions with the
International Monetary Fund had been provided to all members of parliament and that
everyone should contribute from their position to help the state resolve its issue.
Meanwhile, he claimed that the Covid-19 outbreak has damaged Sri Lanka’s economy by affecting the tourist industry. Sri Lanka is turning off the lights for at least 10 hours every day. Since March 8, the currency has declined by around 90 Sri Lankan rupees versus the US dollar.
