Category: Budget

Nov 09, 2007 (LBO) – Sri Lanka’s most powerful business chamber welcomed a government commitment to lower the budget deficit next year, but said reaching the targets was important. “We have repeatedly pointed out in the past that implementation is the key to success in achieving the budgetary targets,” the Ceylon Chamber of Commerce said […]

Here are some of the key government revenue proposals presented in the 2008 budget: – Tax Reliefs for new investments in the Eastern Province – The following tax relief will be available on investments in any undertaking of any nature, where i. The investment is over Rs.50 MN, and ii. Provides employment opportunities for not […]

Nov 08, 2007 (LBO) – Sri Lanka’s cash strapped government is taxing booze, smokes and cars again to boost government revenues and finance subsidies, the 2008 budget presented to parliament showed. “We have sharply increased taxes on alcohol and cigarettes to discourage consumption,” the budget speech tabled in parliament by President Mahinda Rajapakse said. The […]

Nov 08, 2007 (LBO) – Sri Lanka’s Central Bank has once again promised to bring inflation now raging near 20 percent to single-digits in 2008, while maintaining high growth. “With the persistently tight monetary policy stance and complementary fiscal performance, inflation is expected to be at a single digit level in 2008,” the bank said […]

Nov 08, 2007 (LBO) – Though budget numbers tabled in Sri Lanka’s parliament suggested that no money had been printed in 2007, other documents showed a large bank-financed hole in state finances just weeks earlier. The budget showed that 10 billion rupees would be paid back to the banking system by the end of this […]

Nov 08, 2007 (LBO) – Sri Lankan exporters Thursday welcomed incentives in the government’s 2008 budget but warned reduced tax holidays and higher license fees could hurt growth. “The tax and other benefits to the gems and jewellery industry are positive signals as they will stimulate more exports in this sector,” Lakshman de Silva, acting […]

Nov 07, 2007 (LBO) – Central Bank governor Ajith Nivard Cabraal said that tight monetary policy and efforts to reduce the budget deficit should trim sky-high inflation in the coming months. He said the government has to maintain a balance between controlling inflation and maintaining steady economic growth. Cabraal said Wednesday the island had coped […]

Nov 07, 2007 (LBO) – Sri Lanka is seeking a balance between subsidies and development in a budget for 2008 to be presented today, as officials said planned capital spending had been sacrificed in 2007. “We are at a time when we need to present long-term answers to the problems of the country,” deputy finance […]

Nov 07, 2007 (LBO) – Sri Lankan President Mahinda Rajapakse said Wednesday that Tamil Tiger separatist terrorism has to be defeated in order to achieve peace in the island.Sri Lanka has been left with a weak and unstable economy owing to 25 years of terrorism, poor infrastructure development and inadequate attention to developing the domestic […]

Nov 07, 2007 (LBO) – Sri Lanka ship owners won a tax concession in the government’s budget for 2008 presented in parliament Wednesday by president and finance minister Mahinda Rajapakse. . Ship owners registering their vessels under the Sri Lankan flag will be exempt the Port and Airport Development Levy (PAL) and would not be […]

Nov 07, 2007 (LBO) – Sri Lanka’s government which has been unable to provide adequate public goods such as roads, power or water to its people for years, is getting back into one of the most basic of businesses: shop keeping. “It is proposed to set up a State Trading Wholesale Establishment, which will be […]

Nov 07, 2007 (LBO) – Sri Lankan President Mahinda Rajapaksa said Wednesday that fuel prices will be maintained at current levels “temporarily” and revenue losses would be offset by higher levies on imported consumer goods. Due to a long-term policy of giving benefits to privileged classes of society based on muddled political thinking, Sri Lanka […]