Sri Lanka's Supreme Court ruled this week that the Inland Revenue bill the government was hoping to table this month is 'inconsistent' with the constitution, the Daily Mirror reported.
Passing the bill would require amendments or a referendum to be passed in parliament, the Speaker of the House Karu Jayasuriya told parliament today.
Earlier this year, IMF officials indicated the release of the third tranche of the IMF loan would be "contingent on the gazetting of the new Inland Revenue Act bill", Moody's said in a statement published June 30, whilst also highlighting that Sri Lanka's very low level of government revenues was "a key constraint on the sovereign credit profile."
The bill has resulted in protests in the South by those who are against what they say is the IMF's imposition.