Is Wealth Tax the solution to Sri Lanka’s low tax revenue collection?

Successive governments have run fiscal deficits. Inadequate revenue collection and unrestrained government expenditure have worsened the country’s fiscal position.

Unemployment benefit scheme more critical than a private sector pension plan

Labour Minister Nimal Siripala de Silva is proposing a private sector pension scheme and an insurance scheme to cover employees who lose employment according to mawbima.lk.

IPS’ proposals for Budget 2022 – Part II

The Institute of Policy Studies (IPS) ahead of the Budget 2022 presentation has forwarded the following proposals too to the Finance Ministry for consideration.

IPS’ proposals for Budget 2022 – Part I

Ahead of the presentation of the national budget for 2022, the Institute of Policy Studies of Sri Lanka (IPS) outlines some policy areas of concern and puts forward proposals to be considered for inclusion in the forthcoming budget:

Climb ahead: Making case for human capital investments in Sri Lanka

“Sri Lankan children make a dangerous climb for online school,” read the headline of a recent article carried by Al Jazeera.

A framework for economic recovery

For much of its post-independence period Sri Lanka has been characterised by twin deficits: fiscal deficits and deficits in the external current account. What this implies is the country spends more than it earns and consumes more than it produces.

Climate change summit in Glasgow – Do more and do it faster

As we all know, climate change (CC) is fuelling heat waves, flooding, drought, cyclones, etc. and these extreme weather patterns are costing globally US $ 320 billion a year. The main issue confronting the agriculture productivity is stemming from the fact that we have not been able to adopt mitigating strategies to arrest the adverse effects of CC.

COVID-19, global economy and Sri Lanka’s external sector outlook

Global economic developments have impacted Sri Lanka’s external sector performance and the economy overall.

Shake off the shock to the system, rethink SME ecosystem

In Sri Lanka, small business is a very big deal. The numbers tell the story. The Census and Statistics Department, in its decennial Economic Census of 2013/14, found that over 99 percent of all business establishments are micro, small and medium enterprises (MSMEs).

Litro Gas Lanka’s efficient cost leadership ensures price increase covers costs

The energy industry globally operates with fluctuating prices that determine the final price of LPG across markets. Globally, the LPG prices have been shifting with the demand and currency discrepancies, causing costs to soar and markets to tumble, as one of the world’s most efficient and low-cost energy sources goes through turbulent times.

Amidst pandemic-induced volatility GSP+ to EU is critical for Sri Lanka

The recent European Union (EU) monitoring mission visit to Sri Lanka on the Generalised Scheme of Preferences (GSP) Plus trade concessions scheme, has ignited much speculation locally, on the potential costs of losing GSP+ to the EU.

‘Made in Sri Lanka’ project proposed to generate jobs by promoting MSMEs

The CMA Sri Lanka COVID-19 SME Development Committee has formulated the ‘Made in Sri Lanka’ project to obtain the government support in budget 2022.

A brief overview of the new Securities and Exchange Commission Act

The new Securities and Exchange Commission Act No. 19 of 2021 (‘the Act’) has been certified by the Speaker on 21st September 2021 and has thus become law. It repeals and replaces the Securities and Exchange Commission Act No. 36 of 1987.

How do we market Sri Lanka globally as a unique country with green socio-economic system

One consignment of potassium chloride fertiliser arrived on September 14, presumably to be applied for the paddy sector. The potassium chloride is not an organic material. However, the input materials approved for organic farming need not only be organic.

Fertiliser fiasco: Discretion is better part of valour

In his novel published in 1891, tiled ‘The Light that Failed’, Rudyard Kipling wrote the phrase ‘biting the bullet’ to express the thought that fortitude can be gained by ‘biting a bullet’! As things are, should the President and government continue ‘biting the bullet’ or compromise in sincerity as discretion is the better part of valour.

COVID-19 and Sri Lankan economy: Policy choices and trade-offs

Sri Lanka’s macro-economic outlook amidst the COVID-19 pandemic came under the spotlight at a webinar panel discussion held on October 11, to mark the release of the IPS’ flagship report ‘Sri Lanka: State of the Economy 2021’.

Eravur Fabric Park could transform sustainable textile manufacture in Sri Lanka

Since the first announcement in June 2020, expectations have been high on the potential of the Eravur Fabric Processing Park to catalyse a new era for Sri Lankan textile and apparel manufacture.

Local pharmaceutical manufacturing: Potential to be next thrust sector in Sri Lanka

Pharmaceuticals have been manufactured by the private sector in Sri Lanka for well over half a century, with pioneers such as Dumex (now Astron Limited), GSK, Gamma and J.L. Morison Son & Jones, now known as Morison Ltd. Since then, the industry has taken a winding path, facing challenges and chalking up victories.

Rising price of rice in Sri Lanka: Roots and remedies

Rice is the dietary staple and the major domestic crop cultivated in Sri Lanka since ancient times. Therefore, the production and availability of rice are closely tied to food security as well as political stability in the country.

Fertiliser unavailability, food insecurity and irrational policymaking

The answer to our current fertiliser and pesticide predicament is in a remarkable statement made five centuries ago by the father of the science of pharmacology,

Balanced plant nutrition critical for sustainable tea cultivation

Sri Lanka is a humid tropical country with two main monsoon seasons endowed with well-distributed year-round rainfall. Tea is the only major perennial commercial economic crop grown widely in all three elevations and rainfall zones and in 14 districts under varying temperature, rainfall, elevation, topography and terrain.

DIMO Plantseeds introduces Veera to further uplift dairy industry in Sri Lanka

DIMO has introduced Veera, a hybrid silage maize seed variety, to the Sri Lankan market through its subsidiary Plantseeds, with an aim to uplift the local dairy industry.

Healing the Ozone Layer: Need for National Cooling Policy for Sri Lanka

The ozone layer is located in the lower stratosphereat a height of 15 to 30 kilometres above the earth, protecting it against the sun’sharmful ultraviolet (UV-B) radiation.

Industrialist wants BOI rules relaxed to save foreign exchange outflows

Venora Group of Companies Chairman Sagara Gunawardena has called for the relaxation of Board of Investment (BOI) regulations that limit the companies operating in Export Processing Zones from selling in the local market.

Sri Lanka pavilion opens at Expo 2020 Dubai; to showcase country’s many facets

The official opening of the Sri Lanka Pavilion was inaugurated at Expo 2020 Dubai on October 1st.

Sri Lanka tourism loss due to COVID-19 more than 5% of GDP

The COVID-19 pandemic has no doubt had enormous economic impact on the tourism and hospitality industry the world over, including Sri Lanka. For close upon two years international travel has been just reduced to a trickle, with hardly any tourist arrivals. Consequently, there has not been any healthy revenue streams to the industry, with little or no occupancy over the past 20 months.

Manike Mage Hithe: Sri Lankan music industry and creative economy

First time in Sri Lanka we can see that a Sri Lankan singer performing in India and as we know the Indian music industry is one of the largest in the world, Youhani has created history in Sri Lanka. This is important as these days we do not have many celebrations as a nation.

Carefully considered tax actions will ensure viable revenues

Raising revenue is a vital function of tax to combat fiscal constraints. In addition to financing activities of the state, it is also an important element for maintenance of law and order. Ideally, taxes should minimise discrimination in favour of or against business and consumer choice and reduce costs of compliance on organisations and government.

Sri Lanka must increase its efforts to protect and promote human capital of elderly

In Sri Lanka, 12.3 percent of the population is aged 60 or older, making it the country with the highest proportion of older adults in South Asia. The Western province has the highest percentage of the country’s elderly at 31.7 percent, while the Northern province has the least at 4.8 percent.

New SEC Act: boon or bane?

A new Securities and Exchange Commission (SEC) Act was recently passed in Parliament and it was made law last week by the Speaker.