Sri Lanka Evaluates IMF Tax Proposal Amid Economic Recovery Efforts

Sri Lankan President Ranil Wickremesinghe is assessing an IMF proposal to adjust tax bands and reduce the top tax rate. The country is in talks with the IMF for a $2.9 billion bailout package, contingent on external debt restructuring. The government aims to provide relief to mid-level taxpayers affected by recent tax reforms.

Sri Lanka's President Ranil Wickremesinghe announced the government's consideration of an IMF proposal to revise tax bands and lower the top tax rate. This comes as Sri Lanka negotiates a $2.9 billion bailout package with the IMF, conditioned on external debt restructuring.

The IMF recently released the third tranche of the bailout, acknowledging positive economic reforms in Sri Lanka, two years after the nation declared its first-ever sovereign default since independence.

The government proposes adjusting Personal Income Tax slabs to offer relief for mid-level taxpayers impacted by recent reforms. Both government and IMF proposals aim to provide relief but differ in tax thresholds and rates.

(With inputs from agencies.)