Sri Lanka is built on loans, not tax revenue, and social reform must come from all sectors, according to Industries Minister Ramesh Pathirana.
In his address to parliament on Friday, August 12, Minister Pathirana stated that while Sri Lanka has made significant progress in academics and infrastructure, the country has been built on loans rather than tax revenue.
“In 1948, only 10% of households had electricity; today, 99 percent of households have power, and electricity capacity has increased to 4,293 MW,” Pathirana said.
“We have increased the number of schools from 3,091 to 10,155.” “From 52 percent to 98 percent, primary school enrollment has increased,” he said.
According to the minister, Sri Lanka was on its way to becoming a developed nation immediately after gaining independence from the British, with Malaysia being the only country in the region ahead of Si Lanka.
“We have accomplished a lot in this time as a country that is still preoccupied with caste, religion, and race,” Pathirana said.
“But we did it through loans, not tax revenue,” he explained.
“We are having difficulty repaying those loans because, during [ex-President] Gotabaya Rajapaksa’s administration, we decided not to take any more loans.”
Pathirana stated that the pandemic has made this decision difficult.
“We should take that responsibility,” he said.
According to the minister, only about 1,000 people have paid more than one million dollars in taxes, and only about 31,000 out of 246,000 income taxpayers have paid taxes in 2021.
Pathirana said tax reforms could be painful for taxpayers in the future, hinting at what to expect from the upcoming interim budget.
Because of the country’s situation, we must pursue these reforms,” he stated.
He went on to say that in order for the country to develop, social reform should come from all sectors of society.
“It doesn’t matter if more than 1.1 million students have become three wheel drivers,” he said, despite the fact that the number of schools has increased.
“It makes no difference how many buildings we construct if we are not teaching these children English.” It makes no difference if no technical knowledge is provided.”
Pathirana stated that not only politicians, but also officials who carry out decisions, must take responsibility for social development.
“Every year, we have 40,000 graduates.” If the majority of them lose their jobs despite having degrees, education officials must accept responsibility for failing to provide them with the necessary skills for the job market,” Pathirana said.
“Change should come from everyone and not just from politicians,” he said.