Govt approves Rs 16 b economic stimulus package
Approval has been granted to Cabinet memorandum submitted by
President Mahinda Rajapaksa as the Finance and Planning Minister to a
supplementary estimate applicable to the economic stimulus package and
the package to encourage the foreign exchange inflow and savings,
Information and Media Minister and Cabinet Spokesman Anura Priyadarshana
Addressing the weekly Cabinet press briefing at the Government
Information Department Auditorium yesterday, Minister Yapa said the
total amount of this package is Rs. 16,000 million.
Under this package Rs. 1,500 million has been allocated to establish
a State institution under the supervision of the Sri Lankan Tea Board
and intervention in the tea auction to stabilise the level of Rs. 300
Rs. 100 million has been allocated for the provision of one month
working capital at a concessionary interest rate for tea factories and
another Rs. 2,500 million has been allocated to supply mixed fertilizer
for tea growers at Rs. 100 per 50 kg bag.
Cabinet approval has been granted to allocate Rs. 200 million to
encourage local manufacturers of tyres for buses and trucks while
another Rs. 450 million has been allocated to grant subsidy for rubber
manufacturers to ensure a guaranteed price for rubber under this
Rs. 50 million has been allocated to grant interest subsidy for
cinnamon exporters to ensure a stable price for cinnamon.
Rs. 8,000 million has been allocated to grant a five per cent export
incentive for exporters who maintain a same level of exports, employment
and value addition equivalent to 2008.
Under the same package, Rs. 200 million has been allocated to provide
an interest subsidy and loan restructuring facility for tourist hotels
registered with the Tourism Ministry.
Another Rs. 3,000 million has been allocated for other subsidies.
The five per cent export incentive earlier (in 2008) applied only for
the apparel and leather exporters, will be extended to all other