The World Bank said Sri Lanka’s economy is expected to grow by 1.7 per cent in 2024 after contracting by 3.8 per cent in 2023.
The World Bank said that the outlook is clouded with uncertainty and that growth prospects depend on progress with debt restructuring and the implementation of critical structural reforms.
The World Bank released on Tuesday its latest Sri Lanka Development Update, Mobilizing Tax Revenue for a Better Future, saying that improved revenue mobilisation is critical to Sri Lanka’s return to macroeconomic stability.
A government-led tax reform package has been under implementation since May 2022, which includes the introduction of new taxes, a wide range of adjustments to the tax rates and bases, and an intention to improve the efficiency of tax collection and increase compliance, it said.
He said current efforts to mobilise tax revenue should be coupled with continued reforms towards transparency of expenditures to build public confidence and to deliver better public services.