Business Community hails Budget

Channa KASTURISINGHE

COLOMBO: The country's business community represented by various trade chambers and associations have commended the 10-year comprehensive economic framework introduced by Budget 2007 which is heavily focused on the development of vital infrastructure especially in the regions.

Representatives of trade chambers said that the Government's intention to expedite key roads and power sector projects was clearly evident in the Budget proposals.

They said however, the public and private sector partnership and support of political parties in achieving these development targets was vital.

The National Chamber of Commerce of Sri Lanka (NCCSL) yesterday commended the joint consultative approach by the President and the Ministry of Finance had with the private sector in the preparation of the Budget proposals.

"We could in fact have one to one meetings with President Mahinda Rajapaksa and other officials prior to the Budget and I am happy that some of our proposals towards the future well-being of the country have been taken seriously," NCCSL, President Nirmali Samaratunga told the Daily News.

She said that the proposals favoured local industries particularly small and medium scale sector as well as agriculture and construction sectors in general.

Samartunga welcomed the continued commitment of the Government to develop regional infrastructure which is a pre-requisite for bridging the urban-rural divide leading to poverty alleviation. "But speedy implementation of these proposals is essential," she said.

The NCCSL President said that she expected all political parties including the main opposition would support the implementation of the Budget 2007 proposals.

The Federation of Chambers of Commerce and Industry (FCCSL) which represents several regional chambers welcomed the Government's long-term development vision and urged for public-private sector partnership in its effective implementation "On the whole the Budget presented by the President was a people friendly one with a special concern for the SMEs," FCCISL President Nawaz Rajabdeen said.

He said the Budget also included incentives and support for the private sector.

"The proposals to provide employment opportunities for 8,000 graduates in three Government sectors, sweeping expenditure cuts and reforms in public sector enterprises, the imposition of a 2.5% Regional Infrastructure Development levy on vehicles and plans to raise revenue generated by Provincial Councils from present 0.5% of the GDP to 1%, during the next two years are all steps in the right direction," Rajabdeen said.

He welcomed the plans to construct 13 flyovers and highways covering various districts and the move to provide insurance for the public servants.

The Ceylon Chamber of Commerce (CCC) in a statement expressed satisfaction over the commitment made to reduce the budget deficit, thereby lowering inflation while sustaining the growth momentum.

"Speeding up of Norochcholai power plant and South harbour development, plans to compete Southern Highway project by 2008 and lowering the electricity tariff for industries which will enhance the country"s competitiveness and exports are among the salient proposals," the CCC said.

Meanwhile some stock market analysts said certain proposals in the budget would be favourable for some private sector companies.

For example, the decision to increase Port and Airport Development Levy from 2.5% to 3% aimed at developing Ports and airports would positively impact John Keells Holdings which has already acquired significant interest in SAGT.

The President of the Association of Gem and Jewellery Industry, Tennakone Rusiripala welcomed the proposal to reformulate the taxation strategy relating to the gem and Jewellery industry.

Former FCCISL and SAARC President Macky Haishim said that the overall budget was a pro-development budget with a long term sustainable vision.

"This is illustrated by the concessions given to the SME sector," he said.

Women's Chamber of Industry & Commerce (WCIC) Chairperson Ramya Weerakoon said that many of the proposals by her chamber has been incorporated into the budget.

She also welcomed the moves to improve regional development and the proposal to make a minimum wage standard for locals working overseas.