Sri Lanka: A Systematic Country Diagnostic - World Bank

[Godman]

How is the tax hike increased the investor confidence.

Why is the sudden urge to increase the tax? Don't you think UNP has screwed up the economy?

You already know it. So why ask me? The article says it.Our Tax revenue is below the level needed to pay back maturing debt. You are just showing your ignorance by asking the first question and then trying to say the UNP screwed up.

Be happy that I even bothered reading someone in my ignore list join samv. He was spamming dumb posts and even dumber meme to destroy SL threads and you are not only supporting him but doing the same aswell. There is no need even answer such an obvious and childish question. Consider this the last question I answer and don't quote me anymore because it's not going to do any good.

First you were against economic reforms by current govt saying a very dumb thing like this

We enjoy both the comforts of socialism and capitalism. Therefore the planned economic reforms should not damage it

Any idiot knows that only countries with very high Tax revenue can afford to a have an welfare economy however a developing country can not afford to have a welfare economy.
You have pretty much made this question invalid with your previous statement

Sri Lanka should have at LEAST 15% tax per GDP. Our current revnue of 11% is considered "pathetic" for our level.and it's not the loans either but the bloated public sector as well. The one who over took loans should have known to put tax revenues in a decent level before over taking loans as well as trying to keep loss making SOEs alive by though debt.
The thing the current govt screwed up was being late for the urgent tax hikes which should have came in 2015 instead of one time taxes or issuing bonds to repay maturing loans back then.
Sri Lanka had been suffering from frequent BOP crisises through history and what we are facing now is something that was predicted years before. It takes time for the loans mature until then the "illusion" of prosperity remains. A government may appear to be able to cover everything but when the time to pay back loans come the expenses skyrocket to a level govt revenue cannot handle.

Fitch and S&P clearly said it as the reason for the downgrade and this entire thread is pretty much about it! They are expecting to upgrade the ratings after the maturing debt is take care of.The rating agencies even said that Sri Lankas tax revenues are low compared to countries with the same rating

All the inefficient SOEs should be privatized. The govt shouldn't be running businessea like SriLankan which was doing well as a joint venture but crashed to the ground when it was nationalised and MR bro-in-law became it's chairman along with Mihin both are having hundreds of billions debt to make things worse they don't make any profit.

The economy is currently being put on the right track. Although the government aims for 15% tax revenue in the next three years it's still slighly sufficient if public sector reforms and a privatization program is launched and subsidies are cut. However Sri Lanka will be needing tax revenue of 20% for rapid and sustainable development.
The govt is still being too populist and should increase VAT to 20% as economist recomend.

A govt can't spend nor take loans when Tax revenue is below a certain level and that's the issue with SL. After a period of brief "prosperity" a crisis comes.

The tax reforms are putting the country on right track that doesn't go into a massive trap.
What remains is public sector reforms , privatization program and economic reforms.

Anyway remember not to quote me anymore because I won't bother reading your stupidity and blind servitude and your desire to stop Sri Lanka ls progress and destroy it.
You couldn't even stand Sri Lanka developing ties with Germany and the only thing you could say was this.

I think Kalu Suddas can cheer now.....

You don't see yourself as a Sri Lankan but a supporter of MR alone. Ties with Germany and Austria brings immense benefits for Sri Lanka and their support within the EU is vital. You have chosen the interests and power of MR over Sri Lanka's future and made a meaningless and stupid rant.
You have fallen to the level of samv who can only run around Sri Lankan threads spamming these stupid nonsense unable to see Sri Lanka moving forward. So don't bother quoting me anymore. I have no respect to such low leven actions only disgust so there is nothing wrong with adding you to my ignore list

 

[samv]

You already know it. So why ask me? The article says it.Our Tax revenue is below the level needed to pay back maturing debt. You are just showing your ignorance by asking the first question and then trying to say the UNP screwed up.

Be happy that I even bothered reading someone in my ignore list join samv. He was spamming dumb posts and even dumber meme to destroy SL threads and you are not only supporting him but doing the same aswell. There is no need even answer such an obvious and childish question. Consider this the last question I answer and don't quote me anymore because it's not going to do any good.

First you were against economic reforms by current govt saying a very dumb thing like this

Any idiot knows that only countries with very high Tax revenue can afford to a have an welfare economy however a developing country can not afford to have a welfare economy.
You have pretty much made this question invalid with your previous statement

Sri Lanka should have at LEAST 15% tax per GDP. Our current revnue of 11% is considered "pathetic" for our level.and it's not the loans either but the bloated public sector as well. The one who over took loans should have known to put tax revenues in a decent level before over taking loans as well as trying to keep loss making SOEs alive by though debt.
The thing the current govt screwed up was being late for the urgent tax hikes which should have came in 2015 instead of one time taxes or issuing bonds to repay maturing loans back then.
Sri Lanka had been suffering from frequent BOP crisises through history and what we are facing now is something that was predicted years before. It takes time for the loans mature until then the "illusion" of prosperity remains. A government may appear to be able to cover everything but when the time to pay back loans come the expenses skyrocket to a level govt revenue cannot handle.

Fitch and S&P clearly said it as the reason for the downgrade and this entire thread is pretty much about it! They are expecting to upgrade the ratings after the maturing debt is take care of.The rating agencies even said that Sri Lankas tax revenues are low compared to countries with the same rating

All the inefficient SOEs should be privatized. The govt shouldn't be running businessea like SriLankan which was doing well as a joint venture but crashed to the ground when it was nationalised and MR bro-in-law became it's chairman along with Mihin both are having hundreds of billions debt to make things worse they don't make any profit.

The economy is currently being put on the right track. Although the government aims for 15% tax revenue in the next three years it's still slighly sufficient if public sector reforms and a privatization program is launched and subsidies are cut. However Sri Lanka will be needing tax revenue of 20% for rapid and sustainable development.
The govt is still being too populist and should increase VAT to 20% as economist recomend.

A govt can't spend nor take loans when Tax revenue is below a certain level and that's the issue with SL. After a period of brief "prosperity" a crisis comes.

The tax reforms are putting the country on right track that doesn't go into a massive trap.
What remains is public sector reforms , privatization program and economic reforms.

Anyway remember not to quote me anymore because I won't bother reading your stupidity and blind servitude and your desire to stop Sri Lanka ls progress and destroy it.
You couldn't even stand Sri Lanka developing ties with Germany and the only thing you could say was this.


You don't see yourself as a Sri Lankan but a supporter of MR alone. Ties with Germany and Austria brings immense benefits for Sri Lanka and their support within the EU is vital. You have chosen the interests and power of MR over Sri Lanka's future and made a meaningless and stupid rant.
You have fallen to the level of samv who can only run around Sri Lankan threads spamming these stupid nonsense unable to see Sri Lanka moving forward. So don't bother quoting me anymore. I have no respect to such low lives only disgust so there is nothing wrong with adding you to my ignore list

LOL, if there is a lowlife here it is you. Look at how you go off the rails anytime someone criticizes Ranil or yahapalanaya screaming and shouting like a madman. Fact is the country has been completely and utterly f**cked by your boss and his goons. Look around and open your eyes you moron. The economy, the rupee, the stock market - everything has been butchered.

 

[HeinzG]

LOL, if there is a lowlife here it is you. Look at how you go off the rails anytime someone criticizes Ranil or yahapalanaya screaming and shouting like a madman. Fact is the country has been completely and utterly f**cked by your boss and his goons. Look around and open your eyes you moron. The economy, the rupee, the stock market - everything has been butchered.

Nice post man. Where are you getting these? Are these your own creations?

It will be better if they were in English.

 

[HeinzG]

Any idiot knows that only countries with very high Tax revenue can afford to a have an welfare economy however a developing country can not afford to have a welfare economy.
You have pretty much made this question invalid with your previous statement

USA has a tough direct tax system, but there is no social welfare system. It's not necessary to have a very high tax system to employ a social welfare system. It's rather unfortunate people like you thinking on that level. What is necessary is a proper planning of the economy.

It's a government's responsibility to ensure that the social welfare should reach the needy people. Government cannot step aside from such responsibilities citing economy is bad.

In the Sri Lankan context, it's the present government that has screwed the economy in the first place.

Sri Lanka should have at LEAST 15% tax per GDP. Our current revnue of 11% is considered "pathetic" for our level.and it's not the loans either but the bloated public sector as well. The one who over took loans should have known to put tax revenues in a decent level before over taking loans as well as trying to keep loss making SOEs alive by though debt.
The thing the current govt screwed up was being late for the urgent tax hikes which should have came in 2015 instead of one time taxes or issuing bonds to repay maturing loans back then.
Sri Lanka had been suffering from frequent BOP crisises through history and what we are facing now is something that was predicted years before. It takes time for the loans mature until then the "illusion" of prosperity remains. A government may appear to be able to cover everything but when the time to pay back loans come the expenses skyrocket to a level govt revenue cannot handle.

What are fact that you use to come to such conclusion. Or is it your own hypothesis. You need to explain that further. I agree on you with the bloated public sector but writing off public employees is not the answer to the economic woes of the country.

You also mentioned about loss making SOEs. First it's the government's responsibility to make the SOEs profitable. Loss making should not be an excuse to sell them.

Any of the current issues won't have occurred if the UNP government had not marginalized the Chinese investments in Sri Lanka; specially the Port City project. We lose more than 1 years worth of development there. China is currently is not in a good relationship with Sri Lanka. They are not giving any money to us but now demanding the payment on time. Moreover foreign investors are not dumb enough to realize the bad treatment Chinese investments and investors faced in Sri Lanka after the government change. It's natural that we do not receive any investments under these conditions.

You couldn't even stand Sri Lanka developing ties with Germany and the only thing you could say was this.

You don't see yourself as a Sri Lankan but a supporter of MR alone. Ties with Germany and Austria brings immense benefits for Sri Lanka and their support within the EU is vital. You have chosen the interests and power of MR over Sri Lanka's future and made a meaningless and stupid rant.
You have fallen to the level of samv who can only run around Sri Lankan threads spamming these stupid nonsense unable to see Sri Lanka moving forward. So don't bother quoting me anymore. I have no respect to such low leven actions only disgust so there is nothing wrong with adding you to my ignore list

Neither Germany nor Austria has giving significant support to Sri Lanka as the Chinese. But RW government has chosen to attack the Chinese on global scale. You need to understand EU or US is not the entire world.

It's pointless to go after the EU for bailouts and economic aids. These countries were always tried to bring countries like Sri Lanka down. UNP needs to understand this reality.