Sabry says no quick fixes for crisis; comprehensive, long-term targeted program key

Foreign Affairs Minister Ali Sabry PC 

Foreign Affairs Minister Ali Sabry PC on Wednesday emphasised the need for a comprehensive, long-term targeted program as the primary solution to address the economic crisis facing the country.

Minister Sabry underscored the complexity of the economic challenges and stressed that short-term fixes would not suffice. He highlighted the necessity for strategic planning and sustained efforts to achieve economic stability.

He also emphasised the imperative of trapping tax evaders in the tax net to ensure the country's continued status as a welfare state. In this regard, a program is slated for implementation this year to enhance tax compliance, he said..

Sabry made these observations during a press briefing at the Presidential Media Centre (PMC) under the theme ‘One Way to a Stable Country’.

Minister Sabry provided an overview of positive economic progress. Notable achievements include a substantial reduction in inflation from 70% to -2.5% and a 100% increase in tourist arrivals. These indicators, according to the Minister, affirm that the country is moving in the right direction economically.

He stressed that as politicians, they have the authority to make diverse decisions. Nonetheless, it is the citizens of the country who must shoulder the resulting burdens. To propel the nation beyond its current challenges, it must attract new investments and foster job creation. It is important to integrate the creative youth community into the job market. It is noteworthy that this year's Budget has been formulated with these objectives in mind, particularly, with a forward-looking perspective. Furthermore, the 2024 Budget is designed to set the country on a course toward a new economic paradigm.

The Minister said substantial funds have been allocated for digitisation, modernisation of agriculture, and education. In the execution of these initiatives, it is important to steer clear of bureaucratic obstacles and promote collaborative efforts. Key decisions include granting rights to individuals living in apartments and rented houses, as well as providing land rights to farmers.

Emphasising fiscal responsibility, Sabry noted that 70% of this year's Budget has been earmarked for loan instalments and interest payments. He drew attention to Sri Lanka's position as the 8th country with the lowest taxes globally, emphasising the need to focus on bringing tax evaders into the system.  Among the countries above us are Haiti, Somalia, Sudan, Iran, Venezuela and Nigeria.

To address this, focus should be on identifying and apprehending those attempting to evade taxes, with emphasis on restoring transparency, the Minister stressed. 

The implementation of a dedicated program for this purpose has been planned to commence this year. These measures are essential not only to ensure free education, healthcare and other facilities at an elevated standard but also to alleviate the burdens on the people.

“It is crucial to recognise that there are no quick fixes for the economic crisis in the country. A viable way forward would be the implementation of a comprehensive, long-term targeted program,” Minister Sabry pointed out.