In a previous tweet, we gave an explanation of what the increase in someone’s electricity bill would look like in rupee terms, instead of focusing only on the % increase.

https://twitter.com/DefaultLk/status/1558362262909648896?t=9Qf5N9qFBNs8zUOBVW9R8Q&s=19

#DefaultLK #EconomicCrisisLK 1/ Although the bills go up, a less focused fact is that the subsidy for lower-end users actually increases substantially (details below). Looking at the whole evidence implies that there is little to suggest the tariff hike is as regressive as a first glance might suggest.

How do the proposed electricity tariff revisions affect you? #defaultlk 1/There are ~1.1 million users consuming between 0-30 kWh and ~1.5 million users consuming between 31-60 kWh per month. A user in these categories will experience a maximum of Rs 255 and Rs 500 increase per month on their electricity bill, respectively.

Ministry of Finance removed license requirements for imports and replaced it with a surcharge on the duties - as Sri Lanka struggles with both a rupee and dollar deficit. (1/5)

#EconomicCrisisLK #DefaultLK The surcharge on import tax (customs duty) helps manage import demand while increasing revenue for the government - an attempt to hit 2 birds with 1 stone. (2/5)

A host of new tax proposals have come in from the Prime Minister's office - not limited to VAT and TelecomLevy.

Other tax rates (including income tax) have been raised, thresholds are brought down, withholding taxes are reinstated too. (1/5)

#EconomicCrisisLK #DefaultLK Tax hikes are important for a few key reasons
1) Reduces need to borrow to finance budget deficit
2) Reduces excess demand in the economy to reduce imports and support the LKR
3) Allows the financing of strong social spending programs (especially safety nets in a crisis) (2/5)

1/CBSL held a press conference on 29th April to provide an update about the discussion with the IMF and to announce new measures to improve the domestic forex market. The thread below👇 2/During the Washington visit, greater support was shown by the US Department of State, the Indian Government, the IMF, and the World Bank. Technical negotiation rounds with the IMF have started.

Cabraal suggests a 'do-over' of one of the same catastrophic mistakes that led to #DefaultLK

What happened the last time and should we let this happen again?
#EconomicCrisisLK 1/ Remittances dried up as foreign earners moved money to a grey market, massively undermining confidence in the local banking system. (2/4)