NCCSL sheds positive outlook on Govt. budget proposals

Emphasised well planed policy framework to achieve long term set targets

By Waruni Paranagamage

The National Chamber of Commerce of Sri Lanka (NCCSL) expressed a positive outlook on the Government’s budget proposals yesterday and emphasised a well planned policy framework is paramount significant to achieve the long term set targets.

NCCSL President Tilak Godamanna commenting on the budget proposals asserted that certain broad policy statements and changes included in the budget proposals were meant to keep in line with global economic direction.

However he said details and clarity are much needed to discuss further the potential of achieving long term economic target.

“The raising Rs. 90 billion on revision of National Building Tax and Rs. 75 billion on the revision and introduction of Fees and Charges, which are indirect taxes in nature, can cause a cascading effect as well as inflationary impact to the economy. Hence, further details and clarity is needed on the implementation of these proposals,” Godamanna said.

He said that the removal and reduction of certain tax concessions, enhancement of budgetary allocations for education and health, welfare aspects of an aging population, empowerment of more citizens to become land and house owners, the removal of certain barriers on land ownership of foreign entrepreneurs, initiation of rural housing projects, restructuring BOI, EDB and Tourist Board to create one agency, the establishment of rural development centres, Megapolis development in the Western province, creation of financial and business hubs in Colombo and the improvement of vocational training and technical education would move the country socially and economically forward. 

However, Godamanna pointed out that in the long run, except for certain Government revenue measures to address short term revenue targets, managing fiscal deficits were in critical context.

“The Government needs an excellent policy framework to achieve set targets. The policy implementation should be well planned and should be targeted towards the goals. Efficient and timely implementation of projects and necessary reforms is of paramount importance to make the proposals a reality,” he said.

He appreciated the Government’s movement to allocate funds towards construction and tourism industry skill development, establishment of Mahapola University and university infrastructure development.

“We warmly welcome the revamping of infrastructure projects such as Kelani Valley and Jaffna Railway lines, development of road networks, transport, the Cotta Road to Kaduwela elevated highway, the North-East highway, water transport projects, and Megapolis and western Province development projects. The allocation of over Rs. 40 billion on these projects reflects serious commitment by the Government towards these projects as well as the magnitude of the projects,” he added.

Godamanna further pointed out that private sector engagement through Public-Private Partnerships would bring out many benefits including employment opportunities in the short-run. 

He said the Megapolis and Western Province Development Project would develop Colombo as a financial hub.

Expressing his views on budget proposals, NCCSL Senior Deputy President Sujeewa Samaraweera said that the policy framework and practical implications in tax system were needed to maximise benefits. He pointed out that controlled and regulated new land policies would enhance business profits of the national business arena.    

However the NCCSL who broadly represent local SMEs of the country is in favor with proposed MSME Credit Guarantee Scheme, proposed reduction of Corporate Income Tax by 50% for Venture Capital Firms investing in SMEs for five years and more efforts towards skill development, required by SMEs.