Category: Economy and Markets

Nov 17, 2006 (LBO) – After creating two new state banks in successive budgets, Sri Lanka’s government is planning to merge and consolidate them with a network of existing rural banks. Sri Lanka already has two development banks, as well as medium term credit facilities that are channeled through commercial banks.The SME Bank was created […]

Nov 17, 2006 (AFP) – Sri Lanka is set to borrow heavily abroad and at home in a bid to finance a record 2.18 billion dollar budget deficit next year, official figures showed Friday. The overall budget deficit for 2007 was estimated at 7.2 percent of Gross Domestic Product while the government revised the 2006 […]

November 16, 2006 (LBO) – Sri Lanka is expecting a 9.1 percent budget deficit in 2007, with the revised budget deficit for 2006 being estimated at 8.7 percent of GDP. Sri Lanka’s Central Bank is estimating the debt to GDP ratio to fall to 91.5 percent from 93.9 percent by year end. For the second […]

November 16, 2006 (LBO) – The government says the upcoming budget would be growth oriented, with medium term objectives in view, while the opposition which is supporting the budget in parliament, warns that the poor would be hurt if fiscal weaknesses continue. Singapore and Hong Kong which have inflation of around two percent do not […]

November 16, 2006 (LBO) – Sri Lanka is to give a range of tax incentives and relaxed foreign borrowing restrictions to boost shipping and allied maritime activity, as part of budget proposals announced Thursday.“Sri Lanka is an island nation which is active in international trade, and we want develop shipping, and shipping service activities as […]

November 16, 2006 (LBO) – The government is giving tax benefits to the domestic construction industry in Sri Lanka to help them undertake large projects such as building flyover and townships.The government said it wanted to implement a a co-ordinated program with organizations in the industry and skills development institutions to produce craftsmen to fill […]

November 16, 2006 (LBO) – Sri Lanka is offering a 13.295 billion rupee credit line on concessionary terms to develop small and medium scale industries, President Mahinda Rajapakse said Thursday.He said over 100,000 such industries will be eligible to tap the funding line with interest payments spread between 6.5 percent to 14.0 percent. Sectors eligible […]

November 16, 2006 (LBO) – Sri Lanka’s government has introduced a controversial new tax to encourage dividends payment of listed companies, while giving incentives for the unit trust industry.Firms that do not distribute dividends would be subject to a penal withholding tax, according to new proposals released in the 2007 budget. “A company should try […]

Nov 16, 2006 (LBO) – Local jewellers have got a host of tax reductions in the country’s budget proposals for next year, as well as restrictions on jewellery imports.The Port and Airport Development levy on gems, jewellery and gold is to be removed and the Value Added Tax on jewellery reduced from 20 percent to […]

Nov 16, 2006 (LBO) – Sri Lanka is imposing a 10 dollar fee on tourists visiting the island, while locals opting to travel abroad will pay less when they apply for a passport.These new proposals under the citizenship act will take effect from December 1, 2006. Please click to read the Budget 2007 speech: Sri […]

Nov 16, 2006 (LBO) – Sri Lanka’s leather and shoe industry is to be exempt from import taxes on raw materials and machinery, while imported shoes are to be slapped with higher duties.All materials imported for the processing and manufacture of leather and leather related products is to be exempt from import duty and Value […]