Ceylon Institute of Builders welcomes Budget 2013

The Ceylon Institute of Builders (CIOB), the premier professional body of building and construction industry professionals in Sri Lanka, welcome the National Budget for year 2013 and recognise it as development-oriented, and as a fiscal strategy to consolidate the post-war economic development momentum in the country.

The CIOB recognises the difficult and challenging circumstances within which the Government had to present the Budget 2013, particularly in the context of external factors such as global economic slow-down mainly in the US and in Europe, political unrest in the Middle East, natural disasters in many parts of the world etc. and internal factors such as extreme weather conditions including the drought lasted for several months in many parts of the island.

The CIOB is however pleased to note that the Government has faced these challenges with confidence and futuristic strategy which is reflected in the Budget 2013.

“The CIOB is particularly happy to note that the construction industry has been recognised as a high-growth industry in the Budget 2013 and that a number of fiscal measures have been introduced to further stimulate the growth of the construction industry in Sri Lanka. Amongst these measures are the reduction of taxes on importation of construction machinery and equipment, expansion of guarantees provided by the Construction Guarantee Fund etc.

In the area of non-fiscal measures, CIOB welcomes the relaxation of bitumen imports, earmarking of a section of the Northern Expressway to local construction companies and encouraging manufacturing of construction materials locally,” said Dr. Rohan Karunaratne, President of Ceylon Institute of Builders.

“The CIOB is also pleased to note that the Government has accepted a long time industry request, i.e., ensuring a part of the construction projects awarded to foreign contractors. With the 2013 Budget, the Government has clearly decided to impose conditions at the time of approval by the Government, requiring direct involvement of local contractors with regard to foreign investment in the local construction industry,” Dr. Karunaratne further stated.

The CIIOB also welcomes the considerable tax reliefs granted for the SME sector as the construction industry is comprised of a large number of construction SMEs which will stand to benefit from the proposed tax reliefs.

It is the view of the CIOB that these fiscal and other budgetary measures announced in the Budget 2013 will address some of the immediate concerns of the construction industry and further stimulate the growth of the industry.

While congratulating the Government on the presentation of a well-balanced budget, the CIOB expect that implementation of the proposed budgetary measures will be efficient, productive and will be free of complication and confusions to the local industrialists. Dr. Karunaratne also said that the CIOB also expects that the Government will continue to provide necessary protection, safeguards and assistance to the local contractors in the future also considering the contribution of the construction industry to national GDP and its potential to create employment opportunities.