More taxes for economic growth is a fallacy in a country where there is an oversized public service and a world record of ministers, said Aloy Jayawardene, President, Sri Lanka Chamber of Small Industry (SLCSI), speaking at its 46th Anniversary and the presentation of Industrial Excellence Awards held recently in Colombo.
Premalal Fernando, Managing Partner, Hansteel Fabrico won the Platinum Award while Jude Fernando, Proprietor, Bopitiya Auto Enterprises clinched the Gold Award.
He said that with the ongoing economic downturn small and medium industries (SMIs) have taken a heavy beating since 2007 and urged the government to protect them. He said that when the IMF loan was granted they thought that a part of it would be available to assist SMIs but it was only to strengthen the rupee and the balance of payments.
He said that though the reduction of the interest rates is a welcome move, the other constraints have not been addressed. Cess has been imposed on imports of raw material imported by local manufacturers while under the Indo-Sri Lanka Free Trade Agrement, Indian manufactured products enjoy a 100% duty free concession when sending to Sri Lanka.