Panel discussion

Wednesday, 27 November 2013 00:00 - - {{hitsCtrl.values.hits}}

The keynote address was followed by a succinct panel discussion featuring KPMG Partner Shamila Jayasekera and KPMG Managing Partner Reyaz Mihular as moderators. The panellists included Central Bank Governor Ajith Nivard Cabraal, Inland Revenue Department Deputy Commissioner General H.B.A Seneviratne, Commercial Bank Chairman Dinesh Weerakkody, and Aitken Spence CCO Vipula Gunatilleka. After the panellists put forward their individual impressions of the Budget, the floor was open to the audience for further queries.

Mihular opened the discussion by stating, “It’s important to understand the general direction and thinking behind the budget. It gives companies and individuals both certainty and confidence.” He then encouraged each of the panellists to briefly state their impressions of the Budget. Seneviratne: The direction of the Budget is fairly broad-based. The reduction of taxes is continued, there is a mix of direct and indirect taxes. Naturally, once the tax rates go down our base of expectations would be broadened. Other aspect is that the professionals were recognised and concessions given. The previous criticism was that only doctors got tax exempts. Now all professionals do, up to 16%. We currently have a project to strengthen the tax administration, a proposal in that regard. We get information from securities institutes, customs, etc. That linkage is based on the expectations of new projects which will be completed in a couple of years. Weerakody: I like that there is a focus on human capital, which is something necessary to take things to the next level. On the tax side, happy to see the reduction from 24 to 16% for professionals, which will encourage professionals to come back to Sri Lanka. On the consolidation side, we see we don’ have the balance sheet or muscle we require as international banks. In that way, it’s refreshing. On the NBT, there are integrations for banks the effectively tax rate is about 20%. Gunatilleka: This is a continuation of the journey started a few years ago, promoting the KPO sectors. One of the challenges we’ve had is attracting and retaining staff. Looking at a certain per capita income, we need to look at these sectors. These macroeconomic policies will help industries. This is a new area that must be actively looked at.