Regional chambers, associations express mixed sentiments

The budget 2007, with its unusual twist in terms of a 10 year development strategy was received with mixed sentiments from regional chambers and sectoral associations, Federation of Chamber of Commerce and Industry (FCCISL)said.

“On the whole the budget presented by the President was a people friendly one with a special concern for the SMEs. However a private–public partnership is very important to ensure the effective implementation of these ambitious proposals. Such a partnership will ensure quick delivery, transparency and the right checks and balances necessary for optimal resource utilization,” FCCISL President Nawaz Rajabdeen was quoted as saying.

“The proposals to provide employment opportunities for 8000 graduates in three government sectors, sweeping expenditure cuts and reforms in public sector enterprises, the imposition of a 2.5% Regional Infrastructure Development levy on vehicles and plans to raise revenue generated by Provincial Councils from present 0.5% of the GDP to 1%, during the next two years are all steps in the right direction.

However the private sector as a whole is concerned about this increase in government expenditure and the long term sustainability of some of these moves,” he added.

On the tourism visa levy, Sri Lanka Hoteliers Association President Hiran Cooray said, “I think at this point in time such a levy is uncalled for. We have never come to such low levels in tourism before. Therefore this added levy is going to hurt the tourism industry a lot. It is absolutely bad timing. Unfortunately tourism has been ignored in the overall budget as well”

“As far as the Gems and jewelry sector is concerned we welcome the Removal of Port and Airport Levy on Gems, Diamonds and Gold. VAT on Jewellery reduced from 20% to 5%. It would have a positive impact to increase production and exports. The overall budget looks like a pro-development budget with a long term sustainable vision. This is illustrated by the concessions given to the SME sector,” former President of the SAARC chamber Macky Hashim said.

National Construction Association of Sri Lanka (NCASL) Council Member Saliya Kaluarachchi said that the incentives provided for the construction industry are a welcome move.

Sri Lanka Chamber of Small Industry (SLCSI) President Aloy Jayawardane welcomed the proposal to allocate Rs.13,295 million to be allocated under the SME sector at concessionary rates of interest for a variety of SME enterprises. He stressed that the SME development was at the core of sustainable economic development and gainful employment creation in Sri Lanka, where 70% of the population lived in the rural areas.

Women’s Chamber of Industry & Commerce (WCIC) Chairperson Ramya Weerakoon stressed that many of the proposals by her chamber have been incorporated into the budget. She stressed that this was important as it was a majority of women who contributed the three key foreign revenue sources for the government. She also welcomed the moves to improve regional development and the proposal to make a minimum wage standard for emigrant labour.

The regional chamber heads from both Anuradhapura and Ampara welcomed the Agricultural resurgence (Krushi Navodaya) program.

“This comprehensive package of credit and tax rebates for machinery, equipment and extension services for agriculture with Rs.2 billion each year over the next three years earmarked for this project has been a need of the entire agricultural sector for a long time,” Anuradhapura District Chamber of Commerce, Industry & Agriculture (ADCCIA) President Amal Piyathilaka said.

Ampara District Chamber of Commerce & Industry (ADCCI) President Daya Gamage said that “34% of Sri Lanka’s agricultural produce comes from Ampara. But the farmers were getting a raw deal for decades. Therefore this move is welcome. It is also important to implement its effective implementation,” he added.

Chamber of Commerce & Industry of Trincomalee District (CCITD) President R Rajarammohan said that while welcoming the increased provisions for the North and East rebuilding, the volatile situation would dampen any effective implementation steps. “It is important to create a stable situation at the ground level before talking about economic progress in the North and East he added. He also noted that the growing disparity in development and the lack of opportunities for people in the war ravaged areas would only further fuel the conflict.