Budget 2013 boost to investment banking

Indunil HEWAGE

Capital formation is an integral part of economic growth and the Budget 2013 has encouraged local banks to do investment banking without depending on the local funds. To facilitate this process, exchange control requirements have been relaxed and commercial banks have been permitted to borrow up to $ 50 million from global financial market.

DFCC and NDB Banks had been asked to raise 10 year bonds to provide long-term funding for SMEs and plantation sectors and Lankaputhra Development Bank to get Rs. 500 million bond to implement a credit guarantee scheme. Regional Development Bank will extend credit facilities based on SME group guarantees, said S R Attygalle Deputy Secretary to Treasury.

He made these sentiments speaking at a post budget seminar organized by the Ceylon Chamber of Commerce. Commenting on the local tourism industry, Attygalle noted that the tourism industry would hit the $ 1 billion revenue mark by the end of this year with millions of tourists arrivals.

The government has also put in several proposals in the Budget 2013 to elevate IT/BPO/KPO industries as well.