Rs. 3 b for technology and research development

Minister of Technology and Research Pavithra Wanniarachchi has said allocations and incentives provided by the Budget 2012 will be utilized to the maximum in order to give the necessary support for the accelerated Economic Development of the country.

The Government identifying the need of rapidly developing Technology and Research activities in all sectors of the country’s economy has allocated a sum of Rs.3176 million from the Budget 2012  to the Ministry of Technology and Research. In order to achieve the Government’s target of doubling the per capita income by year 2016 it plans to provide all necessary facilities for new inventions in all related sectors.

It is also proposed to allocate an additional sum of Rs.500 million for the National Science Foundation to provide incentives with the Small and Medium sector in mind for specialized research activities.  Special encouragement will also be given to farmers, small and medium businessmen and students to lure them in to research activities in their day-to-day businesses.

Plans are also underway to increase the number of Researchers in Universities and Research institutions from 4000 at present to 20,000 by year 2020. All institutions engaged in Research & Technology activities will be exempted from VAT while the income tax is reduced to 20%. Ceiling of Tax on Income generated from research activities will come down from 24-16%. In order to promote the private sector to engage in research work by utilizing facilities available with the State Institutions a reimbursement of three folds on expenses incurred for Research and Development will be awarded as a tax concession. It is expected to provide such