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.

Sri Lankan student in UK dies in house fire in East Ham

Faizul Ihzan, aged 30 from Sainthamaruthu, Sri Lanka  died on Saturday  during a house fire in East Ham, UK which took place on Friday night (November 12). Firefighters found the body as they were tackling the blaze at the terraced house in Tilbury Road, shortly after 8pm.

His sister and her two children escaped from the fire and were taken to hospital by ambulance suffering from smoke inhalation, a spokesman for London Fire Brigade said.
More than 20 firefighters wearing breathing apparatus tackled the blaze at the family home.

Lanka’s BPO/IT sector can contribute 20% of GDP by 2020

Newly established BPO academy aims to train 1000 students by next year

By Azhar Razak

Sri Lanka’s Business Processing Outsourcing and Information Technology (BPO/IT) sector has the potential to contribute 20 percent to the country’s economic output by 2020 if emerging opportunities are harnessed properly, a top industry expert has said.

According to BPO Certification Institute, Executive Vice-President and Global Operations Head, Sanjeeva Shukla, Sri Lanka could maximise revenues by concentrating on the opportunities provided by the niche sub-segment of the BPO industry, Knowledge Process Outsourcing (KPO) which includes functions such as Legal Process Outsourcing (LPO) and Finance and Accounting Outsourcing (FAO).

Apparel exporters concerned over EDRS halt

By Azhar Razak

Sri Lanka Apparel Exporters Association (SLEA), the trade association representing apparel exporting firms in the island, says the government’s failure to fully implement the promised Export Development Rewards Scheme (EDRS) for the sector has hampered relations between policy-makers and apparel exporting stakeholders. The newly-appointed SLEA chairman, Rohan Abeykoon, however, says he is confident the upcoming budget will help apparel exporters mitigate some of the immediate challenges since a comprehensive five-year industry strategy has been handed over to the government.