Former Deputy Leader of the United National Party (UNP), MP Ravi Karunanayake, has raised serious concerns in Parliament over the government’s decision to abolish the Simplified Value Added Tax (SVAT) scheme from October 1, 2025.
Highlighting the importance of the SVAT system for the export sector, Karunanayake warned that its removal could deal a severe blow to exporters and push the economy into a precarious position.
“The SVAT mechanism is vital for exporters, and its withdrawal appears to be influenced by policy directives from the International Monetary Fund,” he said, urging the government to reconsider the move.
The MP criticized the proposed 45-day VAT refund mechanism, noting that exporters already lack confidence in the Inland Revenue Department due to persistent delays in receiving refunds.
He also drew attention to mounting external pressures, including the imposition of new tariffs by the United States, warning that such developments, combined with the removal of SVAT, could diminish Sri Lanka’s export competitiveness and potentially lead to business closures.
