Tag: Budget

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 […]

Nov 16, 2006 (LBO) – Sri Lanka to halve the surcharge on individual deposits and hopes to increase the tax free threshold for retiring employees as well as remove tax on capital gains and benefits.President and Finance Minister Mahinda Rajapakse told Parliament the taxable interest level will be raised from 108,000 to 300,000 rupees and […]

November 16, 2006 (LBO) — The multiple bank value added tax system of Sri Lanka which also has a non recoverable ‘VAT’ tax on financial firms became more complicated with a five percent charge on smaller business and a range of new adjustments.Jewellery manufactures who export would have to pay a one percent ESC on […]

Nov 15, 2006 (AFP) – Sri Lanka plans to announce a war budget Thursday in which it will hike defence spending next year by 45 percent amid a spiralling conflict with separatist Tamil Tiger rebels, officials say. However money sent by Sri Lankans working abroad grew by 23 percent to 1.73 billion dollars and helped […]

November 14, 2006 (LBO) – Sri Lanka may have to settle for high inflation in the coming months as the government is keen to keep up the high economic growth momentum, treasury secretary P B Jayasundara said Tuesday. Though the budget will announce measures to contain demand pressure, it may not go as far as […]

November 10, 2006 (Dow Jones)–The Sri Lankan government is likely to lift taxes and increase foreign borrowing in its 2007 budget in a bid to meet bloated defense costs and fund large development projects, say analysts. They expect the budget deficit next year at 7.5%-8.0% of gross domestic product, down from an expected 9% this […]

November 10, 2006 (LBO) – Sri Lankan share prices are breaking records amidst flying bullets, but financial markets are uneasy that the government may use next Thursday’s budget to tax capital gains, analysts said. One of Asia’s best performing indexes, the island’s tiny stockmarket is up over 30 percent since January, largely on deal making […]

November 8, 2006 (Dow Jones)–The Sri Lankan government expects the budget deficit to narrow to 5 percent of gross domestic product in 2007 from an estimated 9 percent this year due to higher tax collections and increased borrowings, the deputy finance minister said. “A key focus will be the small and medium scale industries.We plan […]