COLOMBO: Sri Lanka on Tuesday announced a goods and services tax rise after the International Monetary Fund held back a bailout loan tranche because of its failure to meet revenue targets.

The island nation defaulted on its $46 billion foreign debt last year during an unprecedented economic crisis.

Its government has dramatically hiked taxes and cut generous consumer subsidies to repair its ruined finances in line with an IMF rescue plan.

Government spokesman Bandula Gunawardana said another tax rise was needed after the IMF held back a $330 million loan tranche because Sri Lanka’s tax revenue was still not meeting outlays.

Published in Dawn, November 1st, 2023