Category: Economy and Markets

The government plans to revive the local construction industry with housing schemes for migrant workers and public servants and a cess on contractors.The government plans to revive the local construction industry with housing schemes for migrant workers and public servants and a cess on contractors. The budget on Thursday announced that the Construction Industry Guarantee […]

The government has approached the Revenue Authority of Thailand and the ADB to move the Inland Revenue Department to a new administration structure from next year. This will include investment into human resources, automation, professional tax audits from next year. A new tax code is to also be rolled out shortly, Finance Minister Sarath Amunugama […]

The government abandons single band VAT and is planning to tax weddings and wedding services, and reception hall rentals at a new higher rate of 18 percent.The government abandons single band VAT and is planning to tax weddings and wedding services, and reception hall rentals at a new higher rate of 18 percent. “The single […]

The UPFA government’s maiden budget set aside Rs.26,561 mn to support production sector activities and SMEs.The UPFA government’s maiden budget set aside Rs. 26,561 mn to support production sector activities and SMEs. Production activities included the sectors of small and medium industries, agriculture, plantation, livestock, fisheries, enterprise development and tourism. However, the government hopes to […]

Agriculture is to be exempt from income tax, with earnings from the cultivation and sale of non-processed plants, non-taxable for five years from April 1 next year. Agriculture is to be exempt from income tax, with earnings from the cultivation and sale of non-processed plants, non-taxable for five years from April 1 next year. “This […]

Finance Minister Sarath Amunugama gave a lesson to the United National Party in political-speak, by explaining his failure to keep to budget targets and pushing the budget deficit to 8.5% of GDP. Finance Minister Sarath Amunugama gave a lesson to the United National Party in political-speak, by explaining his failure to keep to budget targets […]

Highlights of Sri Lanka’s 2005 national budget. The UPFA government’s budgetary strategy for the next three years. 1. Raise government revenue, within a medium term framework, to 19 percent of GDP and generate a revenue surplus in the budget equivalent to 3% of GDP. 2. Raise public investment to eight percent of GDP. 3. Reduce […]

Three wheelers to be sheltered from future fuel price increases and three-wheeler leasing to be exempt from VAT.Three wheelers to be sheltered from future fuel price increases and three-wheeler leasing to be exempt from VAT. “About 200,000 three-wheeler operators carry one million passengers daily, occupying the least amount of road space and using the lowest […]

Putting in place a much-needed reform, the government is planning to impose PAYE taxes on public servants salaries, while giving a minimum of Rs.2,500 salary increase. Putting in place a much-needed reform, the government is planning to impose PAYE taxes on public servants salaries, while giving a minimum of Rs. 2,500 salary increase. But the […]

A person who pays an electricity bill of Rs 10,000, a phone bill of Rs 10,000, a credit card spend of more than Rs 25,000 a month, or buys a ticket to go abroad, must file a tax return if at least 4 of the conditions are met.A person who pays an electricity bill of […]

Sri Lanka’s Finance Minister lashed out at the country’s English press and an international wire service on the eve of the budget, for what he termed biased reporting of the economic situation of the country.Sri Lanka’s Finance Minister lashed out at the country’s English press and an international wire service on the eve of the […]

Sri Lanka’s government is promising to confound its critics through a budget, which will signal a shift in policy from recent years.Sri Lanka’s government is promising to confound its critics through a budget, which will signal a shift in policy from recent years. “I can only say that it will be a people friendly budget,” […]