CA Sri Lanka’s 2nd Tax Symposium ends with focus on macroeconomics, IMF proposals, and way forward

Panel sessions underway at the CA Sri Lanka tax symposium

The second Tax Symposium of the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) got underway on 13 July where experts utilised the event to discuss and delve at length into the tax policy, as well as the growing demand for improved tax administration, governance, and transparency for the benefit of the economy. 

The symposium was graced by CA Sri Lanka’s President Sanjaya Bandara, Vice President Heshana Kuruppu, Faculty of Taxation Chairman Tishan Subasinghe, Tax Symposium Committee Chair Sarah Afker, as well as members of Council and acting Chief Executive Officer Prasanna Liyanage.

The two-day event, which concluded on 14 July paid special attention to macroeconomics, as well as the proposals by the IMF, taxation, and the way forward for Sri Lanka. A key highlight of the forum was the special segment where officials from the International Monetary Fund (IMF) and the World Bank were invited to help participants understand property tax and wealth tax proposals, which will be implemented in due course as per a deal reached between the IMF and the Government of Sri Lanka. 

During the special segment, IMF Fiscal Affairs Department Tax Policy Division Economist Sebastian Beer, shared his views relevant to the Sri Lankan context. During his presentation, Beer, who has provided technical assistance to over 20 countries on how to structure their tax policies, helped the audience understand the impact of property taxation and how it will affect the Sri Lankan economy. 

World Bank Fiscal Policy and Sustainable Growth Unit Senior Economist Alastair Thomas, delivered a detailed presentation on wealth taxation in developing economies. He also covered capital income taxation, which is interrelated to issues surrounding wealth tax, while also explaining in detail good tax policy principles and the benefit of introducing such taxes to developing economies.

The first session on “Macro Economics: The BIG Picture” discussed the macroeconomic framework and how Sri Lanka should face the challenge in the current context amidst an economic crisis. The presenter of the session was Verite Research Executive Director Dr. Nishan De Mel, while the panelists were JB Securities Ltd. Chief Executive Officer Murtaza Jafferjee, Ministry of Finance Economic Advisor Deshal De Mel, Central Bank Economic Research Department Director Dr. P. K. G. Harischandra, and Standard Chartered Bank MD/Chief Executive Officer Bingumal Thewarathanthri. The session was moderated by CA Sri Lanka Vice President Heshana Kuruppu. 

With the IMF playing a crucial role in supporting the country to strengthen its institutional framework and with tax remaining a key contributor to ensuring the stability and growth of the economy, the second session titled “IMF Proposals and Taxation,” which was moderated by RTA Sri Lanka Managing Partner Saman Srilal, brought together four panellists who discussed at length how the IMF can support Sri Lanka in developing its tax policy on post-debt default. The panelists were Ministry of Finance Tax Policy Advisor Thanuja Perera, John Keells Group Executive Vice President Nisreen Rehmanjee, Department of Inland Revenue Senior Deputy Commissioner P. Nandana Kumara, and Gajma & Co Founder and Partner N. R. Gajendran.

The third session on “International Taxation” focused on the need for Sri Lanka to understand the global trends in taxation, such as digital taxation, transfer pricing, and BEPs, and to emulate best practices for tax administration and tax practices to ensure the country is not lagging when compared with its other counterparts. The session, which was moderated by KPMG Sri Lanka Partner Sharmila Jayasekara, featured PricewaterhouseCoopers Senior Consultant Deepani Herath, Department of Inland Revenue Senior Deputy Commissioner Saman Dissanayake, EY Kuwait Tax Services Director Samantha Weerasekara, The Forum Ltd. Director Hiranthi Rathnayake, and Moore Shisei Tax Corporation Senior Partner/Managing Partner Mika Yamada.

The symposium concluded following the fourth and final session, which took on a discussion format to focus at length on the way forward for Sri Lanka in 2024. The objective of the session was to outline the key changes Sri Lanka needs for the coming year with special focus on governance, SOE reforms, anti-corruption, and transparency to steer economic growth and stability. Moderated by BDO Partners Tax Services Partner Sarah Afker, the panellists comprised Transparency International Sri Lanka Executive Director Nadishani Perera, Attorney-at-Law Harsha Fernando, Ceylon Chamber of Commerce Chief Economist Shiran Fernando, and TW Corp Ltd. Chairman and CEO Thilan Wijesinghe.