Friday Nov 22, 2024
Friday Nov 22, 2024
Monday, 20 May 2024 03:43 - - {{hitsCtrl.values.hits}}
The Government has gazetted the Economic Transformation Bill which sets ambitious targets for the country’s economy for the next two and a half decades.
The new Bill was gazetted by the office of President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation and National Policies. Cabinet approval to present the Bill to Parliament was given earlier this month.
The Bill provides for a National Policy on Economic Transformation and for the establishment of the Economic Commission, Investment Zones Sri Lanka, Office for International Trade, National Productivity Commission, and Sri Lanka Institute of Economics and International Trade.
The new Bill will repeal the Board of Investment (BOI) of Sri Lanka Law, No. 4 of 1978 and replace the BOI with the Economic Commission of Sri Lanka.
The National Policy on Economic Transformation provides for the restructuring of the debt owed by the Government.
The objectives of the Bill is for Public Debt to Gross Domestic Production ratio to be maintained below 95% by 2032 and thereafter, the central government Annual Gross Financing needs to Gross Domestic Production ratio be to be kept below 13% by 2032 and thereafter and the central government Annual Debt Service in foreign currency to Gross Domestic Production ratio to be below four decimal half per centum by 2027 and thereafter.
The policy also aims at transformation of Sri Lanka to a highly competitive, export-oriented, digital economy including diversification and deep structural changes of the national economy to boost competitiveness; achieving Net Zero by the year 2050; increasing integration with the global economy; achieving stable macroeconomic balances and sustainable debt; modernise agriculture to boost farmer productivity, farmer incomes, and agriculture exports and promote inclusive economic growth and social progress.
Once the law is enacted, it shall be the duty of the Cabinet of Ministers charged with the direction and control of the Government of Sri Lanka under Article 43 of the Constitution, to base the National Policy on Economic Transformation on the following targets, namely Gross Domestic Production growth to reach 5% annually by 2027 and above 5% annually thereafter.
It also aims at keeping unemployment below 5% of the labour force from the year 2025; female Labour Force Participation to reach not less than 40% by 2030; and not less than 50% by 2040.
The Economic Commission to be established under his law will contribute to the creation and maintenance of a robust investment climate, the promotion and facilitation of sustainable foreign direct investment which will stimulate international trade by the increase of exports and increase employment opportunities for the citizens of Sri Lanka.
The Commission will also evaluate the need for Investment Zones in Sri Lanka and provide guidance and regulatory oversight for the operation and management of such zones, promote and enable the ease of doing business for investors, investments and exporters.
The Commission will also determine the investments which are of strategic importance which include significant inflows of foreign exchange into Sri Lanka by way of foreign direct investment, the export of goods and services, and large-scale employment within Sri Lanka, and which result in significant benefits to the overall development of the economy.
