Sri Lanka budget 2011 for stability, knowledge economy

Nov 25, 2010 (LBO) – Sri Lanka’s 2011 budget has been made to keep the economy stable allowing monetary policy to maintain low inflation and also speed the country towards a knowledge economy, Treasury Secretary P B Jayasundera said. “This entire fiscal strategy is to bring stability in macro terms,” he told a seminar organized by the Institute of Chartered Accountants of Sri Lanka.

“[To] consolidate the low interest rate regime, consolidate the exchange rate strategy, and for the monetary fiscal co-relations to be established.”

He said several taxes have been removed, setting the path to a less complicated tax structure.

Jayasundera said each budget was not meant to be used to change taxes by gazette notification, and people have to learn to live within the stable tax framework. Taxes should be changed only if they do not work, he said.

In Sri Lanka taxes are changed by gazette notification literally while people sleep to help cover unplanned expenses of rulers who live beyond levels the ordinary people can afford.

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Jayasundera said expenditures have been contained in the budget the government has generally “conducted every single policy in a responsible manner.”

“The resp