Business Times

Govt. to tackle fiscal deficit without compromising public investment : PBJ

By Bandula Sirimanna

The Sri Lankan government is to tackle the fiscal deficit of 6.2% of GDP without compromising public investment of Rs.490.5 billion that is going to the improvement of infrastructure facilities including roads, ports, and power plants and to uplift the eucation sector.

Dr P.B.Jayasundera

In this respect, the private sector should make at least Rs.2000 billion investment, four times greater than the public investment to turn the country’s budget a surplus budget, a top official said.

Addressing a post budget seminar in Colombo organized by the Inland Revenue Department on Monday, Treasury Secretary Dr. P.B Jayasundera said the country has managed to reduce the budget deficit without pruning public investment for infrastructure development which is essential to promote private investment. Public investment fell last year from an actual 6.4 % of GDP in 2010 but is projected to rise to 6.6 % in 2012.

He noted that Sri Lanka has been able to maintain economic growth at 8 % of GDP in 2010 and it will prevail in 2011 as well. The targeted economic growth for 2012 is 8.2 % and this reflects three consecutive years of 8 % growth, he revealed. This will be above the inflation rate of 6.2%.
The government has given many tax concessions including tax holidays for SMEs to allow this sector to contribute its share to the national economy, Dr. Jayasundera said. The 2012 budget is focused on clarity consistency and continuity and it was prepared in consultation with around 3,000 persons representing various sectors and organizations including local chambers of commerce and industries, he disclosed.

Sri Lanka’s SMEs will be granted unprecedented tax concessions and other benefits from the 2012 budget to make it as key drivers of economic growth. A 3-year tax holiday will be given to those engaged in agriculture, agro processing, industrial and machine tool manufacturing, electronic, export of non-traditional products, IT and allied services, Dr. Jayasundera said.

He revealed that state commercial banks have been directed to convert at least one of its bank branches in each district to a project financing unit to cater to the needs of SMEs sector.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Cold war between Treasury, Central Bank
Arbitrary tender cancellation delays Sri Lanka’s crude oil importation
Overall budget analysis for listed firms good : Analysts
Inconsistencies in land take-over law
Most Sri Lankans say lives not impacted by budget-poll
Understanding Budgets
Comment - Bits and pieces budget, doublespeak
Coconut oil is good for you after all!
Sri Lanka Design Festival ends on successful note
Sri Lanka reaches750,000 tourists level this week
Women are better judges than men in assessing emotions
Good response to little Pradeep’s plea to become a banker
Highlights/analysis of the budget
Budget ignores workers in the productive economy : CFL
Budget proposal to reclaim 37, 000 hectares of plantations not sending right signals
No IMF pressure on the 2012 budget : Minister Amunugama
Govt. to tackle fiscal deficit without compromising public investment : PBJ
Provincial class budget, inward look
Fixed broadband not enough for SL, mobile needed : Etisalat CEO
Lucky Lanka Milk founder wins Entrepreneur of the Year award
Japanese Peace Envoy Akashi here for Southern expressway opening
Sri Lanka Asia Asset Finance to raise over Rs.425 mln thro’ IPO
Factors impacting oil prices
LOLC Factors launches Gold Cheque Financing for SMEs in the North
Entrust Securities, Sri Lanka’s first ever licensed Non Bank Primary Dealer, to start trading on Tuesday
Nestle eyeing new segments in SL
Allianz Lanka launches new ‘Medi Care’ product
Janak Hirdaramani – pioneer in the apparel industry
Lanka IOC Chairman on working visit to Colombo
SMB Leasing PLC moves to new office
Three-pronged approach in BT-RCB budget poll
UAE minister says Sri Lanka has a lot of potential
Worrying developments and threat to academic autonomy in Sri Lanka universities
State enterprises should not be privatised: Top global economist
Social impact bonds mooted to help thousands of entrepreneurs
20 % of world’s richest take large slice of global resources
Higher costs, lower margins for telcos in 2012: Fitch
Lanka Ventures looks to Bangladesh, East Africa for power generation
Focus on increasing export competitiveness
Ageing bank directors seek divine intervention to stay in office
Massacre of the rich and the innocents


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution