MONETABRIEF – Sri Lanka is planning to give tax incentives for 50 factories around the island to create rural employment, President Anura Kumara Dissanayake said.
A tax incentive package would be present in the upcoming budget to set up the factories over the next three years after discussing with the International Monetary Fund.
"We have to create rural jobs," President Dissanayake told a rally. "We will start a discussion with the IMF. They do no like some tax holidays.
"We will say the economy is stable and we need the tax incentives."
Sri Lanka has monetary instability due to cutting rates with printed money based on mathematics (historical inflation) rejecting classical economics.
The currency crises from the spurious monetary doctrine are then followed by high taxes including income taxes, unlike in East Asian power houses where income taxes are around 20 percent or below.