Budget incentives for companies formed outside Colombo
 

by Irangika Range

The budget has identified the need of strengthening the local enterprises in the country and for the first time it has introduced SME focused strategies which will vastly improve the micro, small and medium scale industries in the country said Minister of Advanced Technology and National Enterprise Development Rohitha Bogollagama at the 10th Export and Enterprise Development Forum last week.

This was a major move to promote local export sector at the forum and many problems were discussed directly in the panel, the Minister said.

Minister Bogollagama said that the Government has understood the need of regional development and this has been addressed in the budget by granting incentives for any company setting up a new industry in districts outside Colombo and Gampaha with the investing capital not less than Rs. 30 million. They will also gain exemption from income tax for a period of 10 years.

"We also facilitate SMEs to acquire advanced technologies to improve the quality of their products to be competitive in the international market.

This step will enhance direct benefits to large number of SMEs with their investment limit, which has reduced to Rs. 2 million from Rs. 5 million.

We should use maximum local capabilities to develop the national economy which will drive Sri Lanka as the best among other countries.

This budget has mainly concentrated on the service sector oriented developments while local entrepreneurs are encouraged to export.

As our professionals are fast emerging as global professional service providers and all these professionals' service extended by local professionals outside or inside Sri Lanka for foreign currency be exempted from income tax.

Local industries such as handloom, gift wear, printing and packaging, prawn farming, deep sea fishing, cashew industry, livestock would vastly benefits on positive incentives which have been provided by the budget, will promote the ability to produce modern marketable designs, quality production and adopt appropriate pricing methods.

All these strategic plans have been reflected in the Mahinda Chinthana and it is a specific and strong alignment with Millennium development goals which will help the country to reduce its level of poverty over time.

Implementing export oriented developments with the strategic alliance of private sector and the public sectors to formulate long time and short time plans, we have already exceeded our export income target of Rs. 620 billion in this year in spite of national disaster, he said.