Sri Lanka’s CCC optimistic that government’s tax revisions will stimulate economy
The Ceylon Chamber of Commerce (CCC) of Sri Lanka has stated that it was optimistic that the revisions in taxes and levies announced by the government of Sri Lanka will stimulate the economy.
The slew of tax proposals put forward as part of the stimulus package will revive economic growth and activity in the short-term, the CCC has noted in a statement.
“Our expectation is that recent statements by the government in curtailing non-priority public spending and the constrained approach to Ministerial Portfolios signals the seriousness of the efforts by the government to manage the fiscal deficits,” the statement noted.
The Chamber has welcomed the focus on improving the profitability of State-Owned Enterprises (SOEs) commencing with the establishment of a committee to select competent leadership for these state institutions.
The application of best practice management and financial discipline to SoEs was a key recommendation within the Ceylon Chamber’s Sri Lanka Economic Acceleration Framework (SEAF) 2020-25.
The Chamber has expressed hope that the positive benefits accrued from the near-term fiscal stimulus will be sustained over the medium and long-term.
“This will require government’s focus on continuing progressive reforms on several key agendas including but not limited to those related to Local and Foreign Investment, the expansion of exports and productivity enhancements in the public sector,” the statement has further stated.
“The Ceylon Chamber in its capacity as the premier representative of the private sector looks forward to ongoing engagement with the Government with respect to maximizing the translation of economic stimulus measures into accelerated growth and inclusive benefits to all segments of citizens and businesses,” the statement has added.
OSL take:
The actions taken by the government of Sri Lanka related to the granting of tax concessions would undoubtedly have a positive impact on the overall performance of the country’s economy. Also, Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region. Therefore foreign businesses/investors could explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/09122019/Z_4 |