| Policy recommendation | Potential outcome |
|---|---|
Increase tax revenue | Increase income tax rates, reduce income tax thresholds, increase VAT rate and reduce VAT threshold |
Strategy for debt sustainability | Setting up an independent debt office |
Tightened monetary policy | Continuation of high interest rate |
Flexible exchange rate regime | No fixed exchange rates |
Reform SOEs | Listing minority stakes of some SOEs in the stock market, SOEs become more transparent, restructure Sri Lankan Airlines |
Strengthen the Social Safety Net | Samurdhi becomes more targeted welfare |
Reform price controls | Cost-based fuel pricing formula, Electricity pricing formula, electricity bill increase |
Central bank independence | Repeal Monetary Law Act and pass the Central Bank bill to reduce political intervention in CBSL |
Trade liberalization | Relaxing import restrictions |