Businessman Dudley Sirisena has raised concerns over Sri Lanka’s 36 percent personal income tax, warning that high taxation and excessive public holidays could hinder investment and slow the country’s economic recovery.
Speaking at an event in Galle, Sirisena said the country was currently facing a severe economic challenge amid global uncertainties, including the Middle East conflict, and stressed the need for stronger cooperation between the government and the business community.
He said that while businesses were willing to support national economic recovery efforts, the current tax structure could discourage reinvestment and growth.
“We are not here to criticize or praise the government, but there is a clear effort by the new administration to overcome the economic crisis. However, to succeed, there must be a strong understanding and partnership between the government and the business community,” he said.
Sirisena noted that Sri Lanka’s economy remains fragile, warning that even a reduction of daily dollar inflows could significantly impact the country’s financial stability.
He also questioned the number of public holidays in Sri Lanka, stating that frequent holidays based on various events and commemorations were affecting productivity and economic activity.
“To build a country and strengthen the economy, there must be consistent policies. Too many holidays and high taxes make it difficult for businesses to operate and invest,” he said.
Sirisena further urged policymakers to carefully review tax policies, especially in the context of recent economic setbacks including the Easter attacks, the COVID-19 pandemic, and the broader economic crisis, which have affected businesses over the past several years.
He said that a balanced approach between revenue generation and encouraging investment was necessary to ensure sustainable economic growth.
Sirisena also highlighted the potential of tourism, particularly in Galle and the Southern Province, saying the region could play a key role in generating much-needed foreign exchange if properly developed.
He called for policy consistency, improved government-business coordination, and economic reforms to help Sri Lanka navigate current challenges and rebuild investor confidence. (Newswire)