🇱🇰 GOVERNMENT IS BURNING CASH TO KEEP DIESEL PRICES DOWN

Shakir Thowfeek good initiative

Suneth KR True, it markets better. But a subsidy has an end date and a tax cut doesn't. Once a tax is cut, bringing it back looks like a price hike, so governments rarely do it. The 2019 tax cuts showed how that ends.

Jayan Chinthaka Why can't they prosecute Kanchana and get all commissions back to the treasury??

Jayan Chinthaka That's a good point, but don't you think current taxes are high? They just keep collecting and collecting, and people don't have money to spend. Even the government keeps that money in the treasury, so the economy is barely functioning. I don't think this is good for the long term. We might have to go to the IMF another two times in the next decade. The government needs to reduce business taxes and allow economic growth. I'm not saying to cut taxes overnight like they did in 2019.

Suneth KR I know times are tough for everyone, but we need to look at the bigger picture. Sri Lanka collects only around 15% of its GDP in taxes, while many Asian countries collect over 20%. The bigger issue is that around 75% of our tax revenue comes from indirect taxes like VAT, which puts a heavier burden on ordinary people. Meanwhile, interest payments alone consumed around 46% of government revenue in 2025. The 2019 tax cuts contributed to the revenue crisis that eventually led us to the IMF, so reducing business taxes now only makes sense if the lost revenue is recovered by closing tax loopholes, removing unnecessary exemptions, and bringing more people into the tax system. But collecting taxes is only half the job. The government must also ensure that allocated funds are spent efficiently and on time. Ultimately, we need a fairer tax system, better public spending, and accountability for every rupee collected.

Jayan Chinthaka This time, the government has collected sufficient tax revenue from other sources and already has Rs. 1 trillion in its coffers.

Sagara Wijekoon That Rs. 1 trillion is mostly borrowed money, not extra tax. Finance Ministry figures show governments borrowed more than they needed every year: Rs. 605 billion in 2022, Rs. 642 billion in 2023 and Rs. 131 billion in 2024, most of it under the previous government. In 2025 the extra borrowing was only Rs. 20 billion. That build-up is why there’s cash in the Treasury. The government still spent Rs. 779 billion more than it earned in 2025, and interest alone took about 46% of revenue.

Tariq Starlord Sooo..Kanchana's commission story was just another lie,we gullible stpd A holes were made to believe??Answer needed ASAP🤮

Tariq Starlord Cost reflective pricing is the only machanism. These subsidies disturb the equilibrium of all markets including the most important currency market.