2011 BUDGET IN A NUTSHELL

The Government has implemented a US$2 billion reconstruction programme in the North. These major reconstruction activities are expected to be completed by 2012.
‘Mahinda Chintana - Vision for the Future’ targets a per capita income in excess of US$ 4,000 by 2016.

It has been targeted to increase private investments from both foreign and domestic sources from the present level of 19-21 percent of GDP to a range of 26 -28 percent over the next 6 years.
 

This together with public investment of around 6-7 percent, the government is confident that total investment can be raised from around 25-27 percent to 32 - 35 percent of GDP, to support the targeted economic growth in excess of 8 percent in the medium term and 10 percent thereafter.

Apparel sector’s major concern ‘not addressed in budget’

Sri Lanka’s apparel stakeholders say they are disappointed that the latest budget has not addressed their key industry concern with regard to the non-implementation of the Exports Development Rewards Scheme (EDRS).

“We are disappointed that the biggest concern of the apparel sector which was the non-functioning of the EDRS was not addressed in the budget,” Sri Lanka Apparel Exporters Association (SLAEA) chairman Rohan Abayakoon told The Bottom Line.

Immediate excise tax hike shocks motor franchisees

By Azhar Razak

Sri Lanka’s brand new motor vehicle franchise holders have expressed shock and anger over the government’s decision made in the Budget 2011 to drastically increase excise taxes with immediate effect, which they say should have only been made effective from January 1, 2011 similar to and in conjunction with other duty revisions.