Budget has covered all segments - Treasury Secretary

Charumini de Silva

The Government has looked at a wide range sectors in a long-term prospective. This budget went through all segments of the economy ranging from micro level farmers to the foreign corporate investments.

Dr P B Jayasundara

Speaking at the Budget 2011 seminar organized by the Ernst and Young Treasury Secretary Dr P B Jayasundara said President Mahinda Rajapaksa with an enduring vision introduced post income to the working force by also introducing a pension scheme to the private sector and also to the Sri Lankan expatriates working overseas.

Sri Lankan expatriates have remitted over US $ four billion this year becoming the biggest segment of direct foreign remittances to the economy. “But none of the Governments gave priority to this important segment.

The market did not address the aging issue. However, there are still unorganised sectors such as three-wheeler drivers, farmers and many others and this segment should also be looked after,” he said.

Access to finance is vital for a country’s development. The budget has been very favourable for the banking sector and we could expect that the banking industry doing well with the reduction of VAT on financial services from 20 percent to 12 percent. The reduction of corporate taxes from banking sector from 35 percent to 28 percent will benefit the banking industry.

This will enable the banking sector to work as a catalyst of development by providing financial assistance for the entrepreneurial at very competitive rates, he said.

It is timely that the banks perform quality lending for a wide range of economic activities for a rapid growth in this investor friendly environment. Although the banks individually perform well the banks have not presented real balance sheets. Now the banks can have balance sheets, which will match the real economy.

‘Industries must go for IPOs’

Indunil Hewage

Initial Public Offerings need to be promoted while encouraging industrialists to list their shares and debt in the share market to make it as a capital formation to sustain their ventures, Treasury Secretary Dr P B Jayasundara said.

Addressing a press briefing on the 2011 budget, he said the Board of Investment (BOI) will be restructured in the future making it as a powerful facilitator for the local industrialists and investments. The BOI would continue to promote local investments and investors, create better outlook, simple tax regime whilst promoting a skilled workforce in the country.

“To implement more local businesses and investments in the country, industrialists have to take untiring efforts to retain the money they earn from their ventures to make these efforts fruitful,” Dr Jayasundara said.

New and effective ways and means also have to be explored by the relevant authorities in the IT and BPO, tea, apparel, rubber, spice and other export oriented industries to become over US $ billion earning businesses in the country.

“These industries need to create value added products for the Sri Lankan brand to grasp more financial opportunities in world trade. It is time to shift to new technologies and research to be more competitive in the world market in the face of stiff competition faced from similar international players,” he said.