The opposition claims the country’s economy collapsed owing to incorrect policies of the present government and not due to the coronavirus pandemic.
Speaking during a media briefing in Colombo today, Parliamentarian Lakshman Kiriella said Sri Lanka is the only nation in the Asian region to face an economic crisis due to the COVID-19 pandemic.
MP Kiriella said all countries including India managed the economy and the foreign reserves during the pandemic. He said however Sri Lanka’s foreign reserves depleted by over 50 percent.
MP Lakshman Kiriella said the present administration after coming to power reduce the VAT rate as a favour to big spending businessmen who backed them during the past two elections.
He said the massive VAT rate reduction costs the state Rs. 600 billion while the sugar tax scam was also a major hit to the Treasury.
MP Kiriella said therefore the present government’s financial policies contribute to the downfall of the country’s economy.