Milinda Moragoda, Founder of the Pathfinder Foundation, has criticized Sri Lanka's current tax policies, stating they hinder the nation's economic recovery. He argues that while these taxes have somewhat stabilized the economy, they have also worsened conditions for the poor and are driving the middle class into poverty.

Moragoda highlighted a significant brain drain as professionals and skilled workers leave the country, while entrepreneurs relocate abroad due to the unfavorable business climate. This exodus, coupled with decreased new investments, undermines economic growth, which is projected to remain below 3% for the next eight years.

To address these issues, Moragoda advocates for reduced taxation, deep reforms, privatisation, and increased foreign investment. He emphasized the need for political resolve to implement these changes and modernize the economy.

With national elections approaching, Moragoda urged political parties to present comprehensive tax policy proposals aimed at fostering economic recovery and growth. He warned against the continued reliance on high taxes and tariffs to support an oversized government sector, calling instead for a fair, low-tax regime with a strong social safety net for the poor and vulnerable.