Page 59 - Management Digest Udyama Vol 1 Isuue 2

Market earnings records its 2 triple-digit growth
nd

Potential rise in taxes leads to a
further downgrade in the target
for market valuations:

Considering the dire need for
tax revenue, there seems to be a
reasonable chance that tax rates
are likely to be raised either at
the consumer level or corporate
or both. Current Govt Revenue is
less than half of its expenditure
and it is potentially the 2nd
consecutive year that the Govt is
likely to register a double-digit
(10%+) budget deficit. Whether
Sri Lanka goes through an IMF
program or not, Govt may have
to revise its tax rates in order to
improve the Govt coffers.
Earnings expectations arise…
…But 2022E growth dips
amidst possible economic
shock and potential tax hikes

September 2021 57