Sri Lanka met 29 IMF commitments and failed 3 by end-May 2023

Abstract

Sri Lanka had met 29 of the 100 trackable commitments of the International Monetary Fund (IMF) programme and had failed on three as of the end of May 2023. Two of the failed commitments relate to revenue. The first is to increase tax revenue to 2.1 per cent of Gross Domestic Product (GDP), or Rs. 650 billion, by March 2023. Total government tax revenue was only Rs. 578 billion in the first quarter of 2023. The second commitment is to increase the tax rates pertaining to the Betting and Gaming Levy in line with aMay 30 tax proposal. This involves increasing the annual levy on gaming to LKR 500 million, the annual levy on betting carried through agents to Rs. 5 million, the annual levy on betting carried using live telecasting to Rs. 1 million, the annual levy on betting carried without live telecasting to Rs. 75,000 and the levy on gross collection to 15%. A bill was published on the 4th of April but an amendment to the act has not been made.