Tuesday, 26 November 2013 01:09
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Heads of JKH, Carson, Spence, Hayleys, Hemas and CT Holdings say Budget 2014 is broadly progressive at sell-out Daily FT-Colombo Uni. MBA Alumni Association forum
Economist Coomaraswamy and IMF’s Mathai say good Budget but list several concerns
Treasury Secretary Dr. Jayasundera says all-encompassing Budget has delivered clarity, consistency and continuity
By Shabiya Ali Ahlam and Cassandra Mascarenhas
Six of the country’s biggest listed conglomerates yesterday welcomed the 2014 Budget as being broadly good, despite listing a few concerns – a stance also maintained by two top economists at the sell-out Daily FT-Colombo University MBA Alumni Association Forum yesterday at The Kingsbury with Treasury Secretary Dr. P.B. Jayasundera as the Chief Guest.
Coming together for the first time on a common platform, Aitken Spence Chairman Harry Jayawardena, JKH Deputy Chairman Ajit Gunewardene, Carson Cumberbatch Director Mano Selvanathan, Hayleys Chairman Mohan Pandithage, Hemas Holdings Chairman Husein Esufally and CT Holdings Managing Director Ranjit Page shared their perspectives on Budget 2014 along with KPMG Sri Lanka Managing Partner Reyaz Mihular, Economist and Advisor Dr. Indrajit Coomarasawamy and IMF Resident Representative Dr. Koshy Mathai.
The business leaders’ description of the 2014 Budget presented last Thursday by President and Finance Minister Mahinda Rajapaksa ranged from “progressive” and “good” to “commendable”.
Their commendation included proposals concerning consolidation within financial sector, expanding the coverage of VAT at retail trade, boost for dairy, agriculture and exports, as well as import replacement sectors.
Moves to support research and development and position Sri Lanka as a hub for professionals especially to encourage return of expatriates as well as enhancing Sri Lanka’s status as Knowledge Process Outsourcing were also welcomed.
The Government’s official stance on banning Terminal Handling Charge (THC) on shippers was hailed as a boost for exports. Support for plantations was welcomed. Another was increasing cess on imports to encourage local manufacturers.
These six firms account for nearly Rs. 370 billion in turnover last year and Rs. 25 billion in net profits and largely mirror the economy, hence the invitation for them to share their view from the top.
The business leaders also had a few suggestions in addition to concerns.
They urged putting an end to revenue leakages, widening the tax base and inculcating a pride in paying taxes. On the trade side, a more pragmatic approach to new Free Trade Agreements was called for, with hassle free access to ‘Made in Sri Lanka’ products.
Welcoming the five hubs + tourism push, the Forum was also told that Sri Lanka needs to assess ‘what next?’ for the country and how best Sri Lanka can be internationalised to become a true hub like Dubai or Singapore. The Government sticking to the stated budget deficit requiring diligent revenue effort and prudent management of expenditure was also emphasised.
Coomaraswamy described it as a “clearly crafted Budget” sans major populist measures and Mathai confessed “it is a very, very good Budget”. They also commended the fiscal consolidation and discipline shown in the Budget 2014, in addition to a host of other measures.
However, among their recommendations were to make the revenue effort more buoyant, automatic fuel price revision, reforms, and boosting public investments and exports.
