November, 20, 2020
National Chamber views on the new Government’s Maiden Budget
National Chamber at the outset acknowledge and appreciated the Government efforts to maintain consistency in taxation policy framework commenced last year with introduction of certain tax cuts and relaxations, without resorting to ad-hoc revenue enhancement measures in the midst of extremely difficult times confronted with Covid-19 pandemic on behalf of the membership, business community and general public at large.
National Chamber observed the budget proposals deliberated under agriculture, local dairy industry, fishery economy, plantation, etc with budgetary allocations under the Ministries of Agriculture, Irrigation, Water Supply, Plantation, Trade, Fisheries and Land, etc together with wide spectrum of tax exemptions extended would auger well for SMEs of the economy where National Chamber having remarkably high level of representation.
National Chamber is cognizant that budgetary framework revolves around the sustainability of local entrepreneurship under “Vistas of Prosperity and Splendour” while keeping certain import restrictions in order to maintain economic stability of the economy as elaborated under Foreign Trade and National Economy of the budget speech. Chamber sincerely expect that the Government would endeavour to reconnect with global value chain eventually starting with the regional trade collaborations at the appropriate time moving forward.
"We are of the view that up-skilling of the technical know-how of the local work force would be of paramount importance in order to improve productivity level and quality of the output of the local entrepreneurs. While appreciating budget proposals directed towards in the areas of technological infrastructure, connect Sri Lanka, techno parks, distance education, and specifically opportunities for vocational education and expansion of university facilities we stressed that such efforts need to be continued under “Vistas of Prosperity and Splendour” vision of the government in order reap the benefits in the medium and long term horizon.”
"Finally, we are of the view that the successful implementation of the budget proposals of 2021 hinges on the achieving the revenue targets of the government which would be challenging under current prevailing circumstance and expect more light will be shed in this area through deliberations within next few days finally extending the assurance in the minds of rating agencies, investors and foreign financing agencies.”