Sri Lanka to improve local government taxation, licensing

Oct 21, 2011 (LBO) – The Asian Development Bank has given Sri Lanka a 59 million US dollar loan to ensure balanced regional development that includes modernising local government taxation, licensing, and approval rules. The ‘Pura Neguma’ Local Government Enhancement Project to be implemented with ADB loan funds is scheduled to be completed by June 2015, a statement said.

The project aims to achieve “a balanced regional development in the country while improving the Local Government infrastructure and service delivery,” the ADB said.

Total investment cost of the project of 68.77 million US dollars (7,564 million rupees) includes a loan of 59 million dollars from the Asian Development Fund while 9.77 million dollars (1,074 million rupees) will be provided by the Sri Lankan government.

The project will improve local government infrastructure and service delivery, the ADB said.

It will also help in “local government policy reform and capacity building support for institutionalization of new systems in simplified taxation, licensing, and transparent approval systems.”

The ADB project will also support improvement of information systems in local authorities by updating and computerizing databases