IMF: Sri Lanka Budget Should Be Consistent With Programme Parameters

COLOMBO (News 1st); Peter Breuer, Senior Mission Chief for Sri Lanka confirmed that the IMF has reviewed the government's budget and discussed it with the authorities.

He noted that an important issue for the next review will be ensuring that the final budget passed at the end of this month is consistent with the programme parameters.

"This is something we will be monitoring very carefully."

The Sri Lankan government has decided not to proceed with the imputed rental income tax as a revenue measure.

Questions were raised over a possible alternative to this measure, during a press briefing organized by the International Monetary Fund.

Peter Breuer, Senior Mission Chief for Sri Lanka, addressed these concerns, stating, that the imputed rental income tax was a measure proposed by the previous administration as part of a possible revenue package for 2025.

He said that the new authorities have proposed a slightly different package that aligns with their current priorities.

"Both the staff and the authorities have assessed that this package is sufficient to meet the revenue targets under the programme. However, should these measures prove insufficient, additional revenue measures would be needed," he added.