CIMA forum on budget highlights

CIMA Sri Lanka held its annual Budget discussion forum recently, with a keynote address delivered by Minister of Finance Ravi Karunanayake.  In his address to the audience, the Minister emphasised the importance of addressing financial discipline through the Budget 2017 and ensuring a Sri Lankan oriented economy, with local professionals occupying a more active role in the country’s business and financial landscape.  

In keeping with this theme, the Minister encouraged CIMA professionals too to become more involved in the thinking process, and ended his address with the following, “I call upon Sri Lankan entrepreneurs, come forward – this is the time we need you.”

CIMA’s forum this year focused on the impact of the Budget from an economic, taxation and business perspective. KPMG Sri Lanka Principal Tax and Regulatory Suresh R.I. Perera initiated the forum by providing an overview of Budget 2017 and a detailed overview of its taxation components. His evaluation was that the Budget proposal to increase direct tax and reduce indirect tax, along with the tax rates would assist in economic development. Mangala P.B. Yapa, Managing Director (Designate), Agency for Development, Ministry of Development Strategies and International Trade provided insights on the business perspective of Budget 2017.  

This presentation largely featured the Budget’s proposals to attract more investments to accelerate economic development – such as in the forms of special investment packages, facilitating the movement of investors through a long term entry visa category and granting of concessions to exporters, amongst others. 

The third discussion topic shed light on macro-economic impact to business, with a presentation by Anila Dias Bandaranaike, former Assistant Governor of the Central Bank of Sri Lanka. Anila’s assessment was that the Budget is consistent with the Government’s development plan with emphasis on balancing short term goals with long term ones, whilst acknowledging factors which hinder economic development (such as income inequality, shortcoming in the educational system, skilled labour shortage, demographic transition and environment concerns).  

Discussions were followed by a panel discussion moderated by Brandix Lanka Ltd. Chief Financial Officer Hasitha Premaratne, with the participation of Siyapatha Finance PLC Chairman and Sampath Bank PLC former Managing Director Aravinda Perera; Unilever Sri Lanka National Finance Director Priyadharshana Ekanayake; and Ministry of Finance Tax Policy Advisor Thanuja Perera.

Held at the BMICH, this event was well attended by many business executives representing a wide breadth of industries.