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Sri Lanka Raises Taxes, Announces Reforms to Win IMF Aid

  • Talks with IMF in last stages, to start restructuring soon
  • Interim budget announces farm waiver, higher payouts for poor
Sri Lankan President Ranil Wickremesinghe.

Sri Lankan President Ranil Wickremesinghe.

Photographer: Buddhika Weerasinghe/Bloomberg
Updated on

Sri Lanka raised tax rates and announced reforms as it seeks to pull the bankrupt nation out of its economic tailspin amid bailout talks with the International Monetary Fund.

“The island nation will increase value-added tax to 15% from the current 12% starting Sept. 1,” President Ranil Wickremesinghe said in his interim budget speech Tuesday. “The amended budget will help in economic recovery.”