Advocata Chief criticises growth hindering rigid policies

Monday, 27 January 2025 01:23 - - {{hitsCtrl.values.hits}}

By Janani Kandaramage

Chairperson Murtaza Jafferjee

Advocata Institute Chairman Murtaza Jafferjee on Friday delivered a sharp critique of the economic policies, labelling them as rigid and counterproductive.

Speaking at a forum hosted by HNB Leasing titled, ‘Sri Lanka Motor Industry: Outlook for 2025’ last Friday, Jafferjee — a staunch advocate against the vehicle import ban, reiterated the rigidity of the current monetary policy that incentivises imports, but hinders the growth of domestic goods.

“The rigidity of the system incentivises imports but hinders the development of local goods,” he stated, noting the need for a more balanced fiscal and monetary policy framework.

Jafferjee argued that Sri Lanka must pivot towards supporting domestic industries through progressive taxation and strategic policy adjustments, encouraging a more sustainable economic model.

Addressing the taxation structure for vehicles, Jafferjee pointed out its inequities. He noted that vehicles are taxed based on their category, a system that unfairly burdens specific segments of the population.

“This creates a disadvantage for certain groups, making vehicle ownership less accessible to many,” he said.

To resolve these disparities, Jafferjee called for a flat tax system that would level the playing field and encourage equitable access to vehicles while stimulating broader demand. His call for progressive policies and fair taxation echoed throughout the discussion.

Pic by Upul Abayasekara