Sri Laka's premier representative of the private sector optimistic that recent tax revisions will stimulate growth

As the premier voice of the private sector, the Ceylon Chamber says it is hopeful that the government's announced tax and levy revisions will stimulate the economy. As part of the stimulus package, the slew of tax proposals put forward will stimulate short-term economic growth and development, the Chamber said in a statement.

"We hope that recent government announcements to limit non-priority public spending and a restricted approach to ministerial portfolios reflect the extent of government efforts to control fiscal deficits," it said. The Chamber welcomed the focus on improving the profitability of state-owned enterprises (SOEs), starting with setting up a committee to select competent leadership for these state institutions.

A key recommendation within the Sri Lankan Economic Acceleration Framework (SEAF) 2020-25 of the Ceylon Chamber was to apply best practice management and financial discipline to SoEs. The Chamber expressed hope that medium- and long-term sustainability of the positive benefits accrued from the near-term fiscal stimulus. It will entail policy attention on pursuing progressive reforms on many main agendas, including but not limited to those related to local and foreign investment, increasing exports, and improving public sector productivity.

The Chamber is also looking forward, as sponsored in its SLEAF, to an environment of policy consistency and evidence-based decision-making that will provide a basis for accelerating sustainable growth. As the leading representative of the private sector, the Ceylon Chamber looks forward to continued engagement with the government to maximise the translation of economic stimulus measures into accelerated growth and comprehensive benefits for all segments of citizens and businesses.

OSL Take: The Ceylon Chamber of Commerce has also noted that new urbanization initiatives with new opportunities for investment have open doors to gauge the business/investment opportunities in Sri Lanka. The government of Sri Lanka is engaged in an aggressive development program urbanisation and the continuous progress in developing the ease of doing business environment in the country has expanded the business/investment opportunities in key economic sectors. The country’s geographical positioning in the Indian Ocean and the many trade agreements, as well as trade concessions enjoyed by Sri Lanka, have made the country a business hub in the South Asian region.

VBS/AT/05022020/Z_TB5