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Sri Lanka’s new government’s mini budget sends a filthy message; Entrepreneurs are extremely unhappy: Corporate Lawyer

Mar 20, 2015 (LBO) – Sri Lanka’s entrepreneurs are extremely unhappy with the new administration’s interim budget 2015 which was approved by parliament last month including one-off and super gain taxes, Naomal Goonewardena,partner of Nithya partners, a corporate law firm said.
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“You can’t decide anything with the mini budget except the fact that there is a filthy message about what is possible in Sri Lanka and I think that should never be forgotten,” Goonewardena said. “You should talk to the entrepreneurs who owned the companies, I’m not talking about the people who are handling the other people’s money (banks), those people can make statements and that’s fine.
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I’m talking about the people who have their own companies. They are extremely unhappy about the mini budget.” He was speaking at the "Conference of capital market 2015'held in Colombo on 18th this month organized by UTO EduConsult,Sri Lanka. Sri Lanka’s mini budget was presented with a lot of goodies for voters while imposing a one off taxes for the private sector in the Island.
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Sri Lanka imposed a 25 percent 'super gains” tax on companies earning over two billion rupees in net profit. The Finance Minister of Sri Lanka said in his budget speech that there are only 35 to 40 companies which have to pay the newly imposed tax in the island.
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Also taxes were imposed on telecom companies and satellite television connection providers.
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However the salaries of state workers were raised by over 40 percent though the budget. “We are talking about large entrepreneurs.
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A 1000 million is lot of money on their profit,” Goonewardena said.
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“They are extremely unhappy about what happened. Because you know going forward, if the UNP could do it you can just imagine what the JVP could do or any other political parties could do,” “With regard to the election you are basically dealing with one category of money and other category of voters,” “But as a message, entrepreneurs who are actually flocking out the money are deeply disappointed.” He said.
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