Sri Lanka to raise VAT to 15% on 2 May

Reuters: Sri Lanka will raise Value Added Tax (VAT) from 11 to 15% on 2 May, a Treasury official said yesterday, as the island nation reaches the final stages of negotiating an International Monetary Fund loan.

The IMF has long called on Sri Lanka to reduce its budget deficit, raise revenues and bolster its foreign exchange reserves, which are likely to be the main conditions for the grant of the loan, economists say.

“The 15% VAT will be implemented from 2 May,” Deputy Treasury Secretary S. R. Attygalle told Reuters.