Progressive and business-friendly Budget: Intl. Chamber of Commerce SL

The International Chamber of Commerce (ICC) Sri Lanka has commended the 2018 Budget as being “progressive and business-friendly”.

Following is the full statement issued by ICC Sri Lanka.

Mangala Samaraweera, Minister of Finance and Mass Media, presented the National Budget for 2018 with the theme ‘Enterprise Sri Lanka’ under the Government’s Vision 2025 plan. The National Budget targets a three-year economic delivery program to achieve per capita income of $ 5,000 in the medium term, one million new employment opportunities, foreign direct investment of  $ 5 billion and doubling exports to $ 20 billion by 2020. 

In addition, in 2018, it is expected to achieve a 5% growth rate while maintaining inflation at 6%, with a surplus of GDP of 1%, and reducing the budget deficit to 4.5% of GDP.

The Unity Government’s new Budget can be viewed as one of the most progressive ‘business-friendly’ budgets presented by the nearly three-year-old Government. 

“The new Budget’s proposals on liberalisation and promoting entrepreneurship and skills, while boosting exports and helping SMEs, will strengthen the macroeconomic framework in the coming three years,” said International Chamber of Commerce Sri Lanka (ICCSL) Chairman Dinesh Weerakkody. 

He added: “The Budget under Vision 2025 incentivises the private sector by revamping trade policies to enable an export-driven economy.” 

ICCSL is happy to support the Government’s efforts in creating a shipping and logistics hub.  The Budget removes restrictions on foreign ownership of ship agency and freight forwarding businesses. This will harness a more competitive environment while promoting international shipping and logistics companies to set up here in Sri Lanka. 

This ICCSL sees this as a positive move in promoting Sri Lanka as a maritime hub. Moreover, the Sri Lanka Ports Authority Act and Merchants Shipping Act is to be amended by way of introducing an independent ports regulator which will be line with creating a modern day logistics and maritime industry.    

ICCLS sees the Government’s efforts to increase revenue to Rs. 2.32 trillion or 16% of GDP through three avenues as a positive drive in achieving Vision 2025.The Government’s decision to end protectionist policies and abolish para-tariffs for 1,200 items will help exporters reach international markets and this is significant in furthering a market-led economy. ICCSL also commends the Government’s attempts to increase FDIs by lifting the restrictions of listed companies having foreign ownership of land.  

“We are ready to support the Government in its efforts to carry out several legislative reforms. We have complex and archaic labour laws and bureaucracies that hamper foreign companies engaging with us. Amendments to anti-competitive laws, the Monetary Law Act and the Banking Act, including logistic hub regulations, will further strengthen economic growth and facilitate a resilient financial sector. However, the proof of the Budget proposals would be in their implementation and realisation,” said ICCSL Chairman Dinesh Weerakkody.