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Sri Lanka's Unique Revenue Problem

Tax to GDP and GDP per capita for most South Asian countries shows a positive relationship as can be show by the infographic below.

For example Bhutan had a tax to GDP of 10% in and GDP per capita of 4% in the year 2000. By 2020, tax to GDP had risen to just over 12% with GDP per capita being just under 16%.

However, Sri Lanka has a unique revenue problem. The share of tax revenue to GDP has declined with an increasing GDP per capita, across 2000 to 2020.

Stay tuned for an insight that will dive deeper into explaining and breaking down this phenonmenon. Coming soon...

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