Opposition Leader appeals to IMF on VAT relief scheme

03-Oct-2025

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Opposition Leader Sajith Premadasa urged the IMF not to abolish the Simplified Value-Added Tax (SVAT) scheme, warning that its removal would severely affect export-oriented industries.

In a meeting with IMF mission chief Evan Papageorgiou and IMF Resident Representative Martha Voldemichael at his Colombo office, he pointed out that exporters are already struggling and removal without alternatives would cause serious harm.

He also stressed that nearly 50% of the population now lives in poverty, and Sri Lanka urgently needs a targeted poverty-reduction program.

Premadasa said while IMF measures boosted consumption, they failed to support investment, savings, production, and exports. He also highlighted the need to protect SMEs badly affected by bankruptcy laws and lack of proper debt relief.

He called for people-centered reforms that both reduce burdens on citizens and protect jobs and industries. Several MPs from SJB and UNP breakaway groups attended the meeting.