Former minister challenges economic policy with poverty and investment claims

Former minister G. L. Peiris has accused the Sri Lankan government of failing to ease poverty, arguing that taxation and weak investment conditions are undermining households. His remarks are political criticism, and the figures he cited were not independently established by the report carrying his comments.

Peiris said a World Bank report put poverty at 30% and claimed six million people could not obtain a nutritious meal. He also criticised the impact of the 18% value-added tax and other indirect taxes across income groups. These numbers should be read as his cited claims, not a newly verified survey presented here.

He argued that foreign-exchange reserves had been heavily spent and that major foreign investment had not arrived over two years. He referred to a US government assessment of unclear policies, weak coordination between institutions and an unfavourable tax environment.

Peiris further claimed that only 28% of funding allocated in the previous budget had been spent by September. He said vehicle imports had reduced foreign-exchange holdings despite expectations of substantial government revenue.

The comments raise questions about living costs, spending delivery and investment policy, but do not by themselves settle those questions. No government response to his latest criticism was included in the available report.