Empower your business in Sri Lanka and internationally with Prifinance expert corporate and financial services. Streamline company formation and investment opportunities with our tailored advice and solutions.

Sri Lanka Budget 2022 – LIVE Coverage

The Minister of Finance Basil Rajapaksa is delivering the Second Reading of the Appropriation Bill for the financial year 2022 in Parliament.

Finance Minister presenting the budget said "We are presenting the budget amid five global challenges and many countries are focussing on internal problems, there are climate problems, inflation and Coronavirus crises has disrupted economic activities.
We strongly believe that the integration of development and environment is possible.
World Bank, ADB, EU, JAICA, French Development Agency, KFD, KOICA, OPEC Fund for Intl Development and UN agencies are working with us closely.
Budget 2022 is focused on creating an economy based on production. Innovation & IT essential components.
President arrives in Parliament to listen to the Budget speech.
The biggest expense for the Government is the debt repayment
We need to look at new and innovative ways to increase our reserves
We are looking at strengthening the services sectors like IT BPO and Tourism
Elaborating on the issues created throughout history with short term IMF support
Our leaders and financial institutions in the past have gone only for short-term IMF loan programmes and have failed to go for long term programmes.
The island aging population is a challenge we need to face in the future
We are presenting the budget after getting everyone's opinions. The 2022 budget is based on the 'Sawbagyaye Dakma'
New salary structure for public servants to be introduced from next year. Salary administration to be simplified.
State Owned Enterprises (SOEs) should be more financially disciplined, says FM.
The state sector fuel subsidy to come down by 5 liters each
Eligibility for pension for MPs extended to 10 years - including the President
To strengthen the state sector, we will increase the age of retirement to 65.
State sector media institutions to be transformed with business focus financial discipline.
The Customs HS code anomalies will be rectified and a single window will be established for all exporters and importers
Samurdhi applicants will be evaluated to ensure eligibility
TRC will auction broadcast airwaves in a transparent manner.
Will expand internet coverage and provide high-speed broadband with fiber optic, 5G, and other technologies, and TRC will call transparent tenders for this purpose
Govt to establish three-wheeler regulatory commission - there are over 700,000 three-wheelers now
Social security programme to be introduced to benefit senior citizens who are without pensions
An Act to be introduced to secure the rights of differently-abled and persons with special needs.
No business registration fee for startups from next year
Consolidated large taxpayers unit to be established to tax the large 20% segment of taxpayers.
Life and non-life insurance sectors at Sri Lanka Insurance to be amalgamated.
Sri Lanka to convert into a hub of gem and jewellery purchases.
Rubber imports are banned and finished rubber exports are encouraged in 2022
Green Agriculture Development Act will be introduced to protect farmers and increase their productivity.
Sri Lanka to be made into a hub in the region to attract FDI; new currency acts to be introduced
Agro parks to be built and uncultivated land to be distributed among young people to encourage agro entrepreneurship
Discussions to be held with foreign parties to promote Green bond financing services to aid sustainable development.
New market opportunities for the apparel industry. USD 1 billion annual foreign exchange expected through apparel sector developments
The private sector encouraged to produce pharmaceutical drugs locally
Opportunities in local and foreign markets for fruit, vegetable, and liquid dairy production
State workers who hold membership in a trade union would be limited in seeking membership in a different trade union. Trade union alliances would be limited through an amendment to the existing act.
Selected Budget Expenditure Proposals:
Agriculture: Local organic fertilizer to be produced to meet the requirements of the 2022 Maha cultivation season. Various allowances for farmers using organic fertilizer. Incentives for organic fertilizer producers. Additional allocation of Rs. 10,000 million for the plantation sector.
Rs. 5,000 million to be allocated to develop agrotechnology
To increase consumption of fresh milk, a billion more rupees to be allocated in addition to funds already allocated
Export-oriented economy to be created by expanding production in raw materials for the Apparel sector, Rubber, sportswear, organic fertilizer, etc.
Batik and handloom manufacturing sector to be aided with an allocation of Rs. 1000 million
SME industries encouraged to establish industries in other areas except for Colombo, Gampaha, and Kalutara in Western Province with special support in obtaining land, electricity, and water
Basic infrastructure to be developed with an allocation of Rs. 5,000 million
Rs 3 million each for every Grama Sewa division (14,021) under the 'Gama Samaga Pilisandara' program. MPs are to be given Rs 5 million for the development of their areas.
Rs.20,000 million allocated to the Ministry of Highways.
3-wheel drivers will be given a relief with Rs.700 million allocation. Private bus owners affected to be provided relief with an allocation of Rs.1500 million.
Rs.2,000 million allocated for Urban Housing Development
Budget speech temporarily halted for 10 minutes.
Budget speech resumed.
Environmental conservation for rivers and Muthulajawela - Rs. 2,000 million. Forest and wildlife conservation Rs. 3,000 million. Rs. 3,000 million for Sports
2,000 MW to be added to the national grid 
Rs. 200 million alocated for prision reforms activities
Health and indigenous medicine improvements - Rs 5000 million. Digitization of court proceedings - Rs 5000 million.
Rs. 500 million to provide motor bikes for state sector workers
An additional Rs. 30,000 million will be allocated for teacher salaries. Graduates to be provided permanent jobs from January.
Relief pack programme for pregnant mothers to be extended for 24 months. Rs. 1,000 million for senior citizens.
Selected Revenue Proposals:
Govt revenue has dipped to 9.9 percent by 2021
One-time taxes:
1. A one-time tax surcharge of 25 percent is proposed to be imposed on persons or companies with taxable income over Rupees 2,000 million for the year of assessment 2020/2021. Rupees 100 billion is expected to be earned through this tax.
2. VAT on banks and financial service providers under supply of financial services by specified institutions is proposed to be increased to 18 percent from 15 percent. This tax should be paid monthly from 01 January 2022 to 31 December 2022. Furthermore, this tax should not be shifted to the customer. Rupees 14 billion is expected to be earned through this tax.
Cigarettes up Rs. 5 
A fine to be charged from motorists who have been involved in accidents
It is proposed to increase Excise tax with immediate effect. An additional revenue of Rupees 25 billion is expected through this tax increase.
It is proposed to release all vehicles seized at the Sri Lanka Customs owing to non-payment of applicable taxes and other reasons. Such release will be subject to the applicable taxes and fines.
It is also proposed to sell by auction the 5G frequencies to be included the information technology field.
Budget Speech concluded.

Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x