Saudi FM calls Indian, Pakistani counterparts to discuss developments    Al Hilal thrash Gwangju to reach AFC Champions League Elite semi-finals    Saudi Arabia cracks down on fraudulent Hajj campaigns, urges pilgrims to use official channels    Nammos Amala Resort to open soon with Saudi-Greek designs    Saudi Arabia completes 674 Vision 2030 initiatives, achieves 93% of KPIs as ninth-year milestone marked    Literature Commission inaugurates Saudi Pavilion at Muscat Book Fair    Saudi Minister of Culture holds talks with his Costa Rican counterpart in Jeddah    Alkhorayef praises advancements in Al-Kharj food industries sector    MHRSD: 80% of recruitment offices are non-compliant with regulations    At least 50 Palestinians killed in Israeli strikes across Gaza    Teenage girl killed in French school stabbing attack    Trump claims meeting with China after Beijing denies any trade negotiations    GACA chief chairs 16th meeting of the Steering Committee on aviation's strategy    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Jennifer Lopez dazzles in Jeddah with a Formula 1 performance    Saudi Arabia open to expanded 64-team World Cup in 2034, says sports minister    Average life expectancy in Saudi Arabia rises to78.8 years    Film Commission launches 'Cinema' initiative to enhance content    Famed Philippine film star Nora Aunor dies at 71    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Sri Lanka election pledges threaten fiscal targets under IMF
Published in The Saudi Gazette on 05 - 11 - 2019

Sri Lanka's two top presidential candidates are offering election giveaways, from free housing to sanitary pads for women as well as big tax cuts that officials and a credit rating agency are warning would push the country deeper into debt.
Former wartime defense secretary Gotabaya Rajapaksa and housing minister Sajith Premadasa are in a tight race for the Nov. 16 election at a time when the economy is growing at its slowest in 18 years, and its tourism industry suffering from militant bomb attacks this year.
Gotabaya has vowed to cut a 15% value added tax by nearly half and abolish some taxes, as a way to reignite consumption, but that would lead to a loss of more than 600 billion rupees ($3.31 billion), finance ministry officials say.
Premadasa, the son of a former president, has promised free housing for all, free school uniforms and meals for students, fertilizers for farmers and sanitary pads for women, aiming to strengthen his following among the rural poor.
He has also offered to raise the threshold income for the value added tax and to reduce other taxes, raising fears that the fiscal deficit target set under an IMF program could be imperiled under either of the two candidates.
"Unless compensated by significant revenue-raising measures, delivering on the programs announced so far would delay fiscal consolidation and raise the risk that the government's debt burden may rise, from high levels," Anushka Shah, vice president at the Moody's credit rating agency said in an email.
Sri Lanka's fiscal deficit fell to 5.3% of the gross domestic product last year from a six-year high of 7.6% in 2015 under the $1.5 billion IMF loan program. The 2018 target was 4.8%.
The IMF has urged Sri Lanka to show fiscal discipline.
Premadasa is popular among the poor across all the communities for his poverty eradication policies, while Rajapaksa has gained among Sri Lanka's Sinhala Buddhists, who account 70% of its million people.
Neither candidate spelled out his revenue proposals in his manifesto.
Sirimal Abeyratne, an economics professor at the University of Colombo, said most pledges are unlikely to be implemented.
"This is our political culture. This is part of our self-destructive democracy."
But Sarath Amunugama, a former finance minister backing Rajapaksa, said the party had a plan for revenue and if needed, it would renegotiate with the IMF.
Harsha de Silva, economic reforms minister, said that under a Premadasa government, hopes would be pinned on greater private investment to drive growth and generate revenue. -Reuters


Clic here to read the story from its source.