Start making use of benefits given to industries: Rishad

Thursday, 18 July 2013 00:00 - - {{hitsCtrl.values.hits}}

Adds that Treasury assistance to industries is considerable

Industrialists should make the maximum use of the many facilities and benefits given to them by the Government. “To develop our industrial sector, the Government has given many facilities to our industries and industrialists should start making the maximum use of them. As the

facilitators of industrial development in Sri Lanka, we thank Dr. P.B. Jayasundara, the Secretary to the Ministry of Finance and Planning, for directly meeting our industrialists this week and successfully explaining and updating them on the Government policies on industries,” said Rishad Bathiudeen, Minister of Industry and Commerce. Bathiudeen was acknowledging the assistance given by Finance and Planning Secretary Dr. Jayasundara at the forum on ‘Government Strategy for Industrial Development of Sri Lanka’ held on 16 July at the Ministry of Industry and Commerce. The forum was attended by more than 95 leading exporters, chamber representatives and industrialists of Sri Lanka. In addition to clearly portraying Secretary Jayasundara’s views to the crucial industry and export community, the two hour long in-depth forum also successfully resolved several sector specific issues raised by various industry sectoral representatives present at the session. “There are many tax concessions given to the industries. Furthermore, the recent budgetary measures by President Mahinda Rajapaksa have resulted in many new industrial initiatives that our industrialists should explore. Dr. Jayasundara illustrated these to the industrialists well,” Bathiudeen added. “The biggest obstacle we had for our development, the war, is over. In the post-conflict era, the biggest beneficiary is the private sector. There are no more security worries, long transport delays at checkpoints and the additional security related insurance costs that you were once burdened with,” said Dr. P.B. Jayasundara at the forum. Speaking on taxes, Jayasundara said: “Under the vision of President Mahinda Rajapaksa, you all have got a bonus. He took a policy decision to rationalise tax. On the other hand, I ask exporters if you can’t pay 12% export tax, then why export? Our taxes for SMEs are 12%, as it is for the tourism sector. You need to get your [export] products in good shape and make Sri Lanka the wonder of Asia.” Speaking on recent economic growth, Jayasundara stated: “The Government has been criticised by some people on recent policy decisions made but we took painful decisions and managed to keep the balance in the economic system. Also, our economy is strong. The Bank of Ceylon raised $ 500 million at short notice and the Central Bank has done a first class job with the rupee. “For the fourth consecutive year, we have a declining budget deficit, the last being 5.8%. The long term signal of this trend is that more ‘good money’ will come to you. I am very optimistic about how Sri Lanka’s environment will turn out but I am not sympathetic about the change in rates of taxable computed profits. Taxes should be paid. Please help us to protect this tax regime since the Government needs money to provide facilities. Countries will prosper if tax rates prosper and countries will slide if taxes fall.” Stressing on the need for export competitiveness, Jayasundara added: “We have to look for export markets elsewhere. The strategy of President Mahinda Rajapaksa is to ask for markets. Don’t worry about competing there once you get there. First, ask for unrestricted market access from trade partners. We simply met Chinese and showed them our product list, that’s all and China has responded to us very positively. Under the Mahinda Chinthana, we need to give a Sri Lanka brand identity in the sense that there are a few products coming only from Sri Lanka. This is the kind of vision that we all should share. “You can continue to talk about theories on exports as well as on export competitiveness. But as practitioners, you should understand that exports need not always be aimed at only lucrative markets. For example, there is a food import need in several African countries through the UN and WHO due to famine. Also, I believe that we need to deepen our economic ties with both India and Pakistan. These two markets will provide unlimited potential if you are ready.” Anura Siriwardena, Secretary of Ministry of Industry and Commerce, said: “We need to appreciate the support from the Treasury and their ongoing initiatives to uplift our industries. Without the assistance of the Treasury, our industrial development could lag behind. Minister Bathiudeen thanks Secretary Jayasundara for his ready availability to meet the industrialists directly.”