Hike taxes to address debt woes, IMF urges crisis-hit Sri Lanka

Cabinet clears proposal to limit Prez powers as Oppn gains momentum

Sri Lanka must tighten monetary policy and raise taxes to address its debt crisis, a senior International Monetary Fund (IMF) official said on Tuesday, even as Lanka’s President Gotabaya Rajapaksa and the cabinet put in motion plans to reduce his wide-ranging powers.

Anne-Marie Gulde-Wolf, acting director of the IMF’s Asia and Pacific Department, said “The requirement for fund lending will be progress toward debt sustainability,” calling on Sri Lanka for measures to increase tax revenues to address critical spending needs. “Monetary policy has to be tightened to keep inflation in check,” she said.  

The Asian region faces a “stagflationary” outlook