Here are some of the taxation policies that led to Sri Lanka's economic downfall:

Sweeping tax cuts in 2019:

In November 2019, the Sri Lankan government implemented a number of sweeping tax cuts, including a reduction in the
value-added tax (VAT) from 15% to 8% and the abolition of several other taxes. These tax cuts were implemented in
order to stimulate economic growth, but they had the opposite effect. By reducing government revenue, the tax cuts
made it more difficult for the government to finance its spending, which led to a budget deficit.

Lack of transparency and accountability in the tax system:

The Sri Lankan tax system is known for its lack of transparency and accountability. This makes it difficult for the
government to track tax revenue and ensure that it is being collected fairly. As a result, there is a significant amount of
tax evasion in Sri Lanka, which further reduces government revenue.

Weak tax enforcement:

The Sri Lankan government has a weak track record of enforcing tax laws. This makes it easy for businesses and
individuals to avoid paying their taxes, which further reduces government revenue.

Inefficient tax administration:

The Sri Lankan tax administration is inefficient and bureaucratic. This makes it difficult and time-consuming for
businesses and individuals to comply with tax laws, which discourages them from paying their taxes.

These are just some of the taxation policies that led to Sri Lanka's economic downfall. It is important to note that these
policies were not the only factor that contributed to the crisis. Other factors, such as the COVID-19 pandemic and the
war in Ukraine, also played a role. However, the taxation policies were a major contributing factor, and they will need to
be addressed if Sri Lanka is to recover from its economic crisis.

In addition to the above, here are some other factors that contributed to Sri Lanka's economic downfall:

High levels of government debt:

Sri Lanka's government debt has been rising steadily in recent years. In 2022, it stood at around 110% of GDP. This high
level of debt makes it difficult for the government to borrow more money to finance its spending, which has further
exacerbated the economic crisis.

A weak currency:

The Sri Lankan rupee has been depreciating rapidly in recent months. In 2022, it lost around 80% of its value against the
US dollar. This has made it more expensive for Sri Lanka to import goods and services, which has further increased
inflation and put pressure on the economy.

A lack of foreign investment:

Sri Lanka has been unable to attract significant foreign investment in recent years. This is due to a number of factors,
including the country's economic instability, its political uncertainty, and its poor business environment. The lack of
foreign investment has made it difficult for Sri Lanka to finance its development and grow its economy.

The economic crisis in Sri Lanka is a complex issue with no easy solutions. However, it is clear that the country's
economic policies need to be overhauled in order to recover. The government needs to reduce its debt burden, improve
its tax collection, and create a more business-friendly environment. Only then will Sri Lanka be able to attract foreign
investment and grow its economy.