Moody’s expresses confidence in new inland revenue act

COLOMBO (News 1^st) - The Moody’s investor service has revealed through a statement that Sri Lanka's large debt burden and weak debt affordability are weighing on the country's sovereign credit profile. Sri Lanka's government debt to GDP ration for the year 2017 according to Moody’s is around 80%, much higher than other countries in the SAARC region as well as countries in the African region. Meanwhile, Sri Lanka’s government revenue as a share of GDP is lower than many peers. However, the Moody’s Investors Service notes that the new Inland Revenue Act would rationalize the existing income tax structure and help broaden the income tax base by removing exemptions. Moody’s Investors Service said they expect government revenue to rise 0.4 percentage point to 15.2 percent of GDP in 2018 and increase a further 0.8 percentage point to 16 percent of GDP in 2019.