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| Monday, 01 November 2004 |
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CNCI Budget proposals Continued from last week It is observed that the Government does not possess adequate resources to revamp the much needed railway network. As it is, it needs urgent restructuring and improvements to make it a viable concern and to largely supplement the country's transport needs. As the stated policy of the Government does not have the option of privatisation, even having abolished the Railway Authority, the government need to generate funds for the Railway development. It is therefore proposed that. * The Government explore possibility of obtaining foreign aid/funding for the purpose AND/OR * Explore possibility of generating the required funds by realising the value of many unused/idle assets belonging to Sri Lanka Railways eg. Large tracts of prime property. 4.4 Sea Facilities While recognising the improvements effects to the Port of Colombo, it is seen that its competitiveness need be further developed to withstand the competition, Colombo would face once the proposed Indian Regional Development Plans are implemented. It is noted that the rates changed by the Port are not competitive with those in the Region and this need to be rectified. 5. Matters of National Importance 5.1 Education system 5.1.1 Primary and Secondary Education It is a long-felt need that the education system in Sri Lanka should be revamped in line with the advancement of Technology, changing needs of the entrepreneurs and to be in step with the global trends. It is proposed that the school curriculum should be reviewed to, * Meet the National needs * Lay emphasis on English Language Skills and Information Technology (IT) Skills * Gain knowledge on world economic scenario. * Instil awareness on competitiveness and entrepreneurial skills. 5.1.2 University Education It is acknowledged that the University education is purely academic and not job oriented. It was not long ago that the country was ably managed and administered by those who graduated even in Arts, Classics and Languages from our Universities and turned out to be eminent and capable Civil Servants. It is accepted that majority of the present day graduates are below the accepted standards. Therefore, it is high time that the relevant authorities re-examine the areas of inadequacy in University Education and remedy the matters urgently. It is proposed as a short-term measure to, * Reintroduce viva for admissions * Ensure English Language, proficiency It is also proposed that, * The teaching methods be reviewed and encourage reference studies rather than lecture notes oriented examinations. * University authorities interact with business and industry in order to direct the attention of University students for suitable employment compatible with their knowledge. 6. Industry Specifics 6.1 Industrial Development Frequent changes in policy are a major contributor for the collapse of certain industries. Sudden changes in policy without studying the implications they have on different sectors of industry, results in either their collapse or becoming sick industries at great cost to the economy and to the stakeholder. A recent example of this is the Textile Industry. Potential investors in industry are either cautious or adopt a short-term return basis. Result is the retardation of the industrial development in the country. Any changes in Government policy should therefore be studied in detail, its impact on the different sectors of the industry examined, views of the Industrial Chambers obtained and the policy changes effected. No changes in duty structure should be effected unless it has been studied and agreed upon by the Tariff Commission. It is proposed that Industrial Zones be created in each district and in the suburbs of Provincial towns towards industrial development in the country. The prospective entrepreneurs should be attracted by, * Giving them a rebate on the VAT they pay * Payment of EPF/ETF of the employees by the state and free them from rigidities of labour laws. * Industries being relocated too be given enhanced capital allowances and write off of relocation expenses in the first year itself. * Research and development One of the major causes hampering the development of the industrial sector is the insufficient investment on R and D by the industries. Cost of equipment for R and D being relatively high is a major factor deterring investment in R and D. We therefore advocate that industries be encouraged to invest on R and D by making the import of equipment duty free and allowing twice the cost of equipment to be claimed as capital allowance for tax purposes. 6.2 Sri Lanka Customs Sri Lanka Customs to introduce the following measures in order to safeguard the consumer and the local manufacturers from substandard and obsolete imported Consumer items. * All consumer items are imported should have the following marked by its manufacturer on the product or the container of that product, * Shelf life of the product - at the time of import, shelf life should be for another year or 75% of the accepted shelf life * Maximum retail selling price of that product * TIN number of the importer in Sri Lanka * The revenue so lost be recouped by increasing the surcharge of customs duty on finished products. * Reintroduce the duty rebate scheme for Exporters to enable them to reclaim the import duty paid on their inputs such as raw materials and packaging. 6.3 Banking and Debt Recovery Legislation * Debt recovery legislation be strictly enforced to punish those unscrupulous persons engaged in fraudulent transactions and cheque frauds. Banks too be advised to exercise care when opening current accounts without adequate references. * Early steps be taken to effect changes to the Recovery of Loans by Banks (Special Provisions Act No. 4 for 1990) in keeping with that of what is prevalent in USA where foreclosure is the last resort. 6.4 Environmental * Encourage setting up of recycling plants/industries for recycling of polythene, paper and glass. Needless to say it will have the duel benefit of employment and environmental protection. * Complete the waste disposal plants at Ekala and Ratmalana industrial zones on which work were suspended after completing substantial work few years back work was suspended due to lack of funds. * Country is still to implement the hazardous industrial waste disposal system, for the location itself is still to be finalized. This needs to be fast tracked if the country is to avoid greater cost by delaying it. 6.5 National Identity Card Introduce the National Identity Card number as the identification number for all contributors of EPF and ETF. This will enable seasonal, temporary workers etc to claim their benefits which is now very often lost. It will also have the added advantage of keeping a track of benefits such as Samurdhi being claimed by those already employed. 6.7 Small industries We endorse the Government's policy of encouraging the small industrial sector. It is seen that marketing is one of the drawbacks of this sector. We therefore suggest that some of the procurements of the State sector be reserved for the Small Industries or preference be given to this sector. (Concluded) |
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