Sri Lanka faces dual crises in environmental governance and tax policy inconsistency. The recent Diyasaru Park controversy—where a musical event damaged this critical wetland habitat—highlights systemic neglect of biodiversity protection, despite Colombo’s RAMSAR designation. Meanwhile, the 2025 Budget’s tax reforms reveal glaring contradictions: while foreign investors in projects like Colombo Port City enjoy 40-year tax holidays, local exporters and service providers face new 15% taxes on foreign-sourced income. This undermines efforts to attract forex inflows and violates principles of tax fairness. Experts warn that such policies, coupled with misapplied OECD global tax rules, risk eroding investor confidence and worsening Sri Lanka’s economic fragility.