The government is optimistic about meeting its revenue targets under the tax reforms introduced in the 2024 budget if the economy expands beyond the projections set by the International Monetary Fund (IMF).
He stressed that the government aims to meet fiscal parameters through overall economic growth and increasing revenue from vehicle imports, rather than adjusting tax rates.
“We do not want a situation where imports increase by June and stop in July. It will disrupt industries and their investments. Instead, we will closely monitor the situation to balance foreign exchange outflows with revenue generation,” Hulangamuwa noted.
Speaking at the post-budget forum organized by the Institute of Certified Management Accountants (CMA) of Sri Lanka, Mr. Hulangamuwa also outlined plans to reform the new State-Owned Enterprises (SOEs) along the lines of Singapore’s Temasek Holdings.
Although this approach was initially proposed in the 2024 Budget, he noted that the new framework is unique and will introduce a centralized holding company to oversee the strategic direction and management of commercial SOEs.
“The holding company will be responsible for appointing managers and directors based on commercial criteria to make them commercially viable. “Perhaps a portion of that holding company may go to the stock market,” he said.
He explained that the reform effort aims to transform state-owned enterprises into profitable entities by ensuring professional management free from political influence.
In addition, the government plans to introduce a new public procurement law next year to encourage private sector participation in infrastructure projects. Along with this, the Public-Private Partnership (PPP) law, originally drafted under the previous administration, will be tabled with amendments as part of the Economic Transformation Act, which seeks to restructure the Board of Investment (BOI) into an investment promotion agency.
“We expect the introduction of these three laws to encourage the private sector to bring in investments and get involved in projects. Be it energy, roads, ports or logistics, all of them will come under PPP because we are focused on growth, opportunities and jobs in the country. “This is the only way we can grow,” Hulangamuwa said.
