‘Due recognition given to NCCISL proposals through budget 2013’

Ramani KANGARAARACHCHI

The Government has given due recognition to the proposals made by the National Chamber of Commerce of Sri Lanka (NCCISL) through its 2013 budget speech, Budgeting and Finance Committee Chairman H. A. Ariyarathna said at a media briefing held at the Chamber on Friday. He said the government had widened the SME defintion by increasing the threshold turnover to Rs 500 million and has offered a tax amenity for the past and brought the sector under a consessionary tax rate of 10 percent.

It has also encouraged the banking sector by offering many incentives to provide funding to the SME sector. Ariyarathna hoped that SMEs would make use of these measures and become more responsible businessmen by contributing to the national economy. He appreciated the policy measures proposed to stimulate and encourage research and development leading to production of quality seeds and planting material in the agricultural sector.

The NCCISL members have got an alternative of raising long term funding for their business as the government has taken measures to deepen the capital market. This would make the banks become more competitive and encourage borrowing by the business community.

The incentives given to modernize factories with the latest technology, would improve competitiveness amongst exporters. The scheme is to re-imburse the cost of international product safety requirements to be incurred by the exporters and it would address the non tariff barriers in importing countries.

Deputy President Tilak Godamanna, said that positive measures have been taken to accelerate the development of renewable energy sources, such as mini hydro, solar and biomass by way of granting investment incentives and tax concessions. While these measures would reduce the country's dependency on thermal power, they will also offer attractive investment opportunities to the local investors in alternative energy. The Chamber Secretary Sujeewa Samarasinghe said that it would have been better if measures could be taken to streamline the national holidays, introduce certain labour reforms and ease the investment approval processess by many government instiutions.