Economic expert and Government Advisor Dr Shantha Devarajan expects Sri Lanka’s economic growth to turn positive in 2024.
In an exclusive interview with the Sunday Times, Dr Devarajan revealed economic growth was still negative but much less than in 2022, and it is expected to turn positive in 2024.
He further said that the economic prospects for 2024 will be good if the government continues on the reform programme, as confidence in the economy returns.
Stating that Sri Lanka’s economic performance this year was certainly better than last year, Dr Devarajan pointed out that Sri Lanka brought inflation down from 70 per cent in September 2022 to 2 per cent in September 2023.
“Economic growth was still negative but much less than in 2022; it is expected to turn positive in 2024,” he added.
Commenting on the proposed taxes for 2024, including the wealth tax, Dr Devarajan said Sri Lanka needs to increase its tax revenues and that as a general principle, the rich should be taxed more than the poor.
He pointed out that one of the greatest sources of wealth among the rich is their property, adding that this is largely untaxed.
“So, a property tax makes perfect sense if you want to raise tax revenues without hurting the poor,” he added.
Dr Shantha Devarajan, Professor of the Practice of International Development, Edmund A. Walsh School of Foreign Service, Georgetown University, Washington D.C., made the remarks while responding to questions on Sri Lanka’s economy, the International Monetary Fund (IMF) and related matters. (NewsWire)