SME thrust

Monday, 12 November 2012 00:03 - - {{hitsCtrl.values.hits}}

The Small and Medium Enterprises (SME) sector, which employs 35% of the labour force representing 25% of the national economy, was a net beneficiary of the Budget 2013.

Regional Development Banks (RDB) to extend credit facilities based on SME group guarantees
SMEs with an annual turnover of less than Rs.500mn to be taxed at 10%
Exempt SMEs from Nation Building Tax (NBT) and Value Added Tax (VAT) with effect from January 2013
Expand micro-finance and leasing facilities through Samurdhi banking societies up to Rs. 500,000
Lankaputhra Development Bank to implement a Credit Guarantee Scheme to underwrite credit risks of institutions which lend to small businesses

The following proposals were also made to support industries from which the SME sector can benefit:

Increase the replanting subsidy from Rs. 300,000 to Rs. 350,000 per hectare from 2013 to encourage replanting among small holders
Provide Rs. 2 bn for the development of eight fishery harbours
Organic fertiliser to be procured at a guaranteed price of Rs. 400 per 50kg bag by Ceylon Fertiliser Corporation
Seed paddy requirement for the Maha cultivation to be provided free of charge to all farmers in weather-affected areas
High import taxes on milk powder will be maintained to encourage local milk production
Increase taxes on imported canned fish and lower the taxes on required raw materials to encourage the local fish canning industry
5,000 acres of underutilised plantation company land to be reallocated on a 30-year lease to develop small holder plantation crops among 12,500 entrepreneurial youth

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.