Sri
Lanka,
Long Defended
by IMF, Now
Slammed for
Rajapaksa Tax
Games
By
Matthew
Russell Lee
UNITED
NATIONS,
December 3 --
The
International
Monetary Fund,
after giving
Sri Lanka's
Rajapaksa
government
money in July
2009 just
after its
"Bloodbath on
the Beach,"
has today
belatedly
acknowledged
that things
did not work
out as the
government
projected.
In
an IMF report
embargoed
until 4:30 am
on the US'
East Coast on
December 3,
the IMF says
of Sri Lanka
that "revenue
performance
has been weak
thus far in
2013.
To some
extent, low
revenues
reflect
the weaker
imports, but
the numerous
tax exemptions
and tax
administration
weaknesses
remain the
important
causes of
lower-than-expected
revenues."
In
many places,
this is called
"corruption."
But the IMF at
least at the
staff or
communications
level has
repeatedly
resisted
criticizing
Sri Lanka in
any way. Inner
City Press has
periodically
posed Sri
Lanka
questions to
the IMF's
"Online
Briefing
Center"
during their
bi-weekly
briefings.
Spokespeople
Gerry
Rice and
William Murray
have proceeded
as if the
questions
weren't posed,
leaving
a lower-ranked
"IMF
Spokesperson"
whose name
can't be used
to send boiler
plate defenses
of Sri Lanka's
performance.
Recently
leadership of
the IMF's Asia
Pacific unit
switched;
could that be
related to
this less
craven
assessment?
Now,
IMF Directors
see "remaining
vulnerabilities,
including the
recent rise in
nonperforming
loans, and
risks from the
increase in
external
borrowing by
banks and
private
entities on
commercial
terms.
Given Sri
Lanka’s high
level of debt
and potential
vulnerability
to
external
shocks, they
emphasized
that close
monitoring is
warranted."
On
human rights
as well - and
these are not
unrelated.
Watch this
site.
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