Colombo, July 5 -- Granting ad hoc, non-transparent and large tax exemptions in the past has created significant issues, obviously on the fiscal space and revenue - not only in terms of losses in foregone revenue for the government but rise in corruption vulnerability, according to Evan Papageorgiou, IMF Mission Chief for Sri Lanka.

Addressing a virtual press conference on Thursday, he said the revision of tax exemption frameworks is a key cornerstone because the authorities have also committed to refrain from granting tax exemptions until the new tax exemption framework is updated to meet best practices, in line also with technical assistance.

"Under the IMF programme, we have structural benchmarks to amend the Stamp Duty (Amendment) A...