National Chamber of Commerce welcomes 2013 Budget

By Shabiya Ahlam

The National Chamber of Commerce of Sri Lanka (NCCSL) last week welcomed the Government’s 2013 Budget presented by President and Finance Minister Mahinda Rajapaksa.

NCCSL, which safeguards interests of the local entrepreneurs and businessmen, was contended to observe that the 2013 Budget followed the same overall policy direction set by the Government without resorting of any policy reversals or any inconsistencies.

“We are happy that most of our recommendations in particular to SMEs, exports, agriculture and Ayurveda sectors, along with the relaxation of foreign exchange regulations have been incorporated,” NCCSL Chairman of the Banking, Insurance and Financial Services Committee H.A. Ariyaratne told journalists.

From its inception, the NCCSL has been encouraging and promoting the SME sector in Sri Lanka in the view of high contributions made by this sector towards economic development, employment generation, and regional development.

The chamber acknowledges the fact that the Government has widen the definition of SME by increasing the threshold turnover to Rs. 500 million, while it also has offered a tax amenity for the past and has brought the sector under concessionary tax rate of 10%.

Encouraging fund availability for the SME sector, the Government has offered incentives to banks as well.

NCCSL is confident that SMEs will make good use of the measures put forward and grow to be responsible businessmen contributing to the Government revenue and national economy.

The proposed policy measures pronounced in Budget 2013 to stimulate and encourage research and development leading to production of quality seeds and planting materials was noted with satisfaction by the NCCSL.

NCCSL’s Sujeiva Samaraweera said: “Though not immediate, the importance of the policy measures on research and development will be certainly felt in the long run.”

The chamber extended its gratitude to the Government for incorporating measures to deepen the capital market which would give its members alternating ways of rising long term funding for business activities.

To improve competitiveness amongst exporters, NCCSL acknowledges the Government for proposing incentives enabling the upgrading and modernising of factories equipped with new technologies.

The statement put forward by the NCCSL stated that the Government has also introduced a scheme to reimburse the cost of international product safety requirements, a cost incurred by the exporters, as a measure to address the non-tariff barriers in importing countries, whereas a further assistance, the budget has proposed the port and airport levy be reduced to 2.5% from the current 5% rate.

Accelerating the development of renewable energy sources, positive steps have been taken by the government which includes granting of investment incentives and tax concessions to the Energy sector. The statement issued by NCCSL stated: “While these measures would reduce the country’s dependency on thermal power, they will also offer attractive investment opportunities for local investors in alternative energy.”

NCCSL was also pleased with the incorporation of the suggested policies and measures put forward and taken on board, concerns prevail with regard to the National Budget 2013.

Samaraweera stated: “We would have been happier if the Government could make measures to streamline the national holidays, introduce certain labour reforms and most importantly simplify the approval processes by many Government institutions.”

He added; “When it comes to brining Foreign Direct Investment to Sri Lanka, it would be better if all Government institutions speak the same language and reduce red tape. This would encourage and attract FDI into Sri Lanka while increasing the Ease of Doing Business status of the country.”