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Budget 2021: Disgruntled voices from different sectors
View(s):Prime Minister Mahinda Rajapaksa in his Budget speech proposed to further extend loan recovery periods and other concessions granted under the Central Bank’s re-financing facilities programme until September 30, 2021 for the tourism sector, but those in the trade have expressed reservations.
“I propose to provide the banks with a Treasury guarantee covering 50 percent of such loans. I also propose to make necessary amendments to simplify the taxes and fees levied by local government institutions on tourism with an upper cap,” the Prime Minister said.
However, Hotels Association President Sanath Ukwatte said they are planning to meet the Minister of Tourism and Chairperson of the Tourism Development Authority and discuss areas of concern and issues that have not been addressed by the Government in its next years’ financial plan.
“Being one of the worst hit industries due to COVID-19, the industry will need many more financial reliefs and moratoriums that we expected from the 2021 budget. Before the tourism sector allocations are finalised we are planning to meet the minister and senior officials. It is important that the Government has a clear long term plan for the tourism industry,” he said.
Meanwhile, he said the tourism industry is not in favour of the compulsory working age limit being made 60 years.
“This is an industry with opportunities for the younger generation. A maximum age limit should not be imposed on the industry,” he said.
While proposing a daily wage of Rs. 1,000 for plantation workers from January 2021, the Prime Minister in his Budget speech said he intends to present to Parliament in January a legal framework that will change the management agreements of plantation companies that are unable to pay this salary and provide opportunities for companies with successful business plans.
He said the Government is to review the privatization agreements of unsatisfactory plantation companies and to setup alternative investments that can be commercially developed.
Roshan Rajadurai of the Planters’ Association of Ceylon said the daily wage proposal has been included even in previous election manifestos; therefore this is not a new proposal. He said the Government should have a methodology on introducing the daily wage.
“There are over 400,000 small holders who are presntly struggling due to the pandemic. While all other industries have been crippled badlydue to COVID-19, the tea industry here is surviving and has the ability to contribute to the economy,” he said.
He said the Government needs to have a mechanism to evaluate underperforming plantation companies and it has not yet made known the criteria of evaluation.
Meanwhile Rohana K Amarakoon and IT Entrepreneur speaking to the Sunday Times said, “Given that Sri Lanka is facing a massive economic downfall after the COVID-19 pandemic , the budget 2021 should have reflected the changes that must be made to get the economy onto a sustainable track, but when considering the proposal introduced, it is evident that there is no difference when compared with the previous budget.
To be competitive and enter the global market during a post COVID-19 situation we must grasp Sri Lanka’s long term economic trajectory and how it fits into the global context.
When facing productivity issues, the Budget has not focused on implementing solutions like the need to have digital adoption. If the government focuses on enhancing the entrepreneurs by introducing their products in the online markets, that will lead them to the particular market.
If we are focusing on the digitized working environment first and foremost the Government has to introduce a faster internet speed, he said.
Meanwhile in Sri Lanka not all students had access to online education that had been introduced by the government as a solution to disruptions to education caused by the pandemic control measures. Rather than providing tablets for students there are better options that can be implemented.
For instance there are families consisting of two or three children, how could their parents buy a laptop for each of them? This is not practically possible. Without making it a luxury item the government should have made concessions in these products.
All Island Three Wheel Owners Association Chairman Sudhil Jayaruk commenting on the budget saud, “The three-wheeler industry is an important source of employment for many non-agricultural, informal sector workers but it is sad that little attention has been given to them in this Budged”.
“Previous years, a meeting is convened before the budget report is prepared and our suggestions and views are sought, but this time nothing like that happened,” he complained.
“Sri Lanka has an extensive three-wheeler taxi service of around 800,000 vehicles, seeing the budget we are losing faith in the new government”
“Earlier,we requested to establish a regulatory authority for three-wheelers engaged in passenger transport services.They have been struggling to regulate the profession for the past 20 years.We hoped that at least this government would have addressed our issues, but it seems it’s the same as before” he added.