- The Ceylon Federation of MSME criticizes the 2026 Budget for not providing relief to struggling MSMEs.
- President Mahendra Perera warns that reducing the VAT threshold to Rs. 36 million will force more small retailers into the tax net.
- The 18% VAT burden is expected to be passed on to consumers, worsening cost-of-living pressures.
- Many MSMEs still face liquidity challenges and lack access to new loans, especially those with non-performing loans.
- The Federation plans to urge authorities to create practical mechanisms to help genuinely affected MSMEs regain access to capital.
Source: ft.lk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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