Sri Lanka, Nov. 3 -- An economist has warned that reducing taxes could undermine the Government's efforts to raise Sri Lanka's tax-to-GDP ratio to 17% next year, urging policymakers to focus instead on strengthening revenue collection and addressing persistent weaknesses in public spending.

With fewer than ten days remaining before the 2027 Budget is presented to Parliament, the warning comes amid indications from the President that tax reductions could be announced in the upcoming Budget.

Economist Rehana Thowfeek said the Government should carefully weigh any decision to reduce taxes, particularly as the country prepares to enter a budget year without the constraints of IMF programme parameters for the first time since the economic cr...