Budget 2016

[puliyanamTop contributor]

Hope Ravi K delivers some goods to the Market and economy

[BackstageTop contributor]

Puli, RK said to expect a storm, but today is the best weather we have had in some time. So much for Fat Friday !

[BackstageTop contributor]

So far no signs of a revolution in the Pitakotte area, though some serious discussion on the ceiling price of plain tea has been observed since last night.

Can we expect a ball-by-ball commentary from Sashi ?

[sashimaalTop contributor]

Live feed:

https://www.youtube.com/watch?v=vz7n-jGZPQs

[puliyanamTop contributor]

Key points:

– Budget will provide Sri Lanka a new beginning for the development of the country
– Attention on agricultural development to become the rice grannery of Asia
– Sri Lanka is faced with a difficult economic environment
– Special attention to develop state enterprises neglected by the former regime and to create more international trade
– Tourism faced setbacks in the past after some tourists faced violence in the island
– Finances were heading down a dangerous path under previous government even after the end of the war
– We have inherited a difficult situation with the budget deficit

[HUNTERTop contributor]

Thanks. Keep going Puli.

[puliyanamTop contributor]

Reiterated his request for expats to bring back undeclared funds
– Criticizes irregularities, high debt cost on large infrastructure projects of the previous government
– We have to pay attention to savings, be careful with tax payers’ money
– Tax reform is necessary to increase revenues
– Taxes should be simplified for ordinary people to understand. Value added taxes was down to 26 percent of government’s revenue in 2014 from 40 percent in 2005

[puliyanamTop contributor]

Productivity, skills and effeciency of public sector should be improved.

14: 56 - Majority of those who can afford to pay taxes are not incldued in the present public taxing schemes

14: 55 - Outdated regulations included in a majority of the 35 varieties of taxes and other service charges imposed on people at present

14: 51 - Debt servicing resulted due to exobitant amounts of foreign debt obtained by previous regime, has imposed a limitation in spending

14: 47 - Although it was made to seem as if SL had achieved a fast paced economic growth during the former government- the country was in fact saddled with a large amount of foreign debt

14: 46 - Sri Lankans should take into account the famous words of US President John F. Kennedy - "ask not what your country can do for you--ask what you can do for your country."

[puliyanamTop contributor]

– It is questionable why Sri Lanka took a long time to implement zero budgeting system
– From 2016 January, a new zero based budgeting system to be applied, government institutions should justify expenditure headings. Most countries uses such policies based on accounting principles.
– Pension system will be a huge burden in the future to tax payers. New government servants should have a new pension scheme reducing recurrent expenditure
– Dramatic fall in tax revenue from 19 percent of GDP in 1990 to 10.2 percent in 2014
– Government debt to GDP ratio is 72 percent
– Public and private sector partnership for the construction of budget houses for middle level income earners needed
– Railway system will be modernised to meet demand and minimize traffic on the roads that is a drain on productivity
– Committee to develop SME business sector

[puliyanamTop contributor]

:13 - Public sector transportation to be developed



15:11 - Government and private sector collaboration to initiate housing projects for low and middle income level families

15:10 - Measures should be taken to ensure rapidly increasing cancers, kidney disease and dengue epidemic cases are minimized

15:10 - Aging population should be provided with healthcare schemes.

15:07 - Modernisation of education sector needed - students' life skills and independant thinking should be nurtured. Exam centered education system should be replaced with a skills-centered scheme.

15:05 - Trend of low level of private investments which was at about 22% during the past few years, has to be changed

15:02 - Measures should be implemented to organise and manage the rising pension payments owing to the rise in aging population

[BackstageTop contributor]

Wow , Puli very impressive. Keep it going.

[The AlchemistTop contributor]

Good on you Puli. thanks a lot. BTW for you Budget watchers, 160 hostages taken in Mali @ Radisson Hotel - CNN

[puliyanamTop contributor]

Proposals
– Committee to develop SME business sector
– Policy for micro, small and medium entrepreneurs to cover all issues, regulate the sector
– 500 million rupee initial fund to protect micro, small and medium scale sector
– Micro, small and medium entrepreneurs to get 50 percent discount on income tax from April 2016
– Selected lenders will finance Micro, small and Medium entrepreneurs without collateral
– Venture Capital will be availble for startups
– Incubators to be set up in mini industrial parks across the country and private sector companies invited to operate in them. A three years tax cut of 50 percent to be granted.
– Need to convert agriculture to agribusiness; Rs1000mn provision for a program to convert underutilized state lands to agricultural lands
companies that promote greenhouse technology and drip irrigation to be provided 50 percent tax cut in order to encourage the production of high yielding seeds.

[කිත්සිරි ද සිල්වාTop contributor]

Thanks Pully.
(Wow " Drip irrigation to be provided 50 percent tax cut " ).

[sashimaalTop contributor]

Thanks Puliy

[BackstageTop contributor]

Help for Chicken exporters.

[puliyanamTop contributor]

– Maximum retail price of a 400g packet of local milk will be reduced from Rs325 to Rs295, Subsidy of Rs30 to those produce 400g milk; Rs1000 million to be used for the project
– Fisheries Industry: We export 150 million dollars worth fish annually. To encourage local industry I propose, 1 million life insurance for fisherman. Also we encourage tin fish production. Accordingly 300 million rupee concession to be given to Lak Sathosa to see tin fish at a price of 125 rupees.
– Tea Sri Lanka has less value-added tea in the market. So we encourage more value added tea based products.
An Active Committee would be establish to look over tea industry. We are planning to move towards to a Tea blending country. But to protect the “Ceylon Tea branding” I propose to look into labeling strictly.

[කිත්සිරි ද සිල්වාTop contributor]

" Tea Sri Lanka has less value-added tea in the market. So we encourage more value added tea based products ".

Good move.

[puliyanamTop contributor]

– Two year tax exemption for Tea and Rubber growers
– New economic zone in Vavniya to be setup
– 750 million rupees allocated for the harbor development of Chilaw, Mirissa, Kalmuniai, Karainagar, Poornawella
– Sri Lanka to give 50 permits through Central Bank to import gold.
– Auctions for gems to be held in the country

[puliyanamTop contributor]

5:47 - SL being a location free of bird-flu has opened up export markets for poultry, particularly in the Middle Eastern region

[puliyanamTop contributor]

Gem and jewelry auctions will be held in Sri Lanka every April and in October with an intention to get a better rate
– Investor friendly foreign exchange control
– Liberalising the lubricant market, remove lubricants from BOI negative list

[puliyanamTop contributor]

LLUB and LIOC?

[Axe]

More proposals towards Rubber and Tea industry! Sha!

[puliyanamTop contributor]

– Abolish SIA Securities Investment Accounts, propose investors to be allowed to bring in money through any bank account

[කිත්සිරි ද සිල්වාTop contributor]

Looks investor friendly on the face value of it but will it not open a back door for many others?

– Abolish SIA Securities Investment Accounts, propose investors to be allowed to bring in money through any bank account