National Chamber welcomes Budget 2009

The National Chamber of Commerce of Sri Lanka (NCCSL) yesterday welcomed the 2009 Budget as a very positive one in the light of the challenges facing the country.

The NCCSL in a release said the need of the hour is a prudent mechanism to monitor the implementation of these development proposals in a transparent manner. The NCCSL further commenting on the 2009 Budget said:

This budget is focused on developing domestic agricultural and industrial sectors while giving incentives to promote exporting Industries.

However, the challenge is on the local industries to make use of these incentives and to increase their production volumes and to offset any shortfall on imports. We are happy to note the Budget 2009 has also given concessions and assistance for export and tourism development.

Increased Budgetary allocations on infrastructure will create more employment opportunities and benefit the private sector.

The increase in Public sector salaries and reduction on taxation for private sector employees will certainly enhance the consumption. Long awaited reduction on fuel prices is welcomed and hope it is sustained for a longer period.

A prudent mechanism to monitor the implementation of these development proposals in a transparent manner is the need of the hour.

With regard to the agriculture sector, local farmers could enhance their competitiveness with increased import duty on wheat from 6% to 10% and imposition of 5% cess on import of wheat flour. In addition, a 15% cess was also imposed on the imports of other grains that could be locally grown will further benefit the local farmers.

Maintaining the fertiliser subsidy at Rs. 350 for 50 Kg will continue to assist the development of the paddy sector. Cess on import of fruits and vegetables will encourage the local grower.

A 25% cess on imported maize and animal feed will encourage the local production but we hope this will not result in a shortage or a price escalation during the transition period. Another notable encouragement to the agriculture sector is the offer of fertilizer for farmers who use organic fertiliser and methods.

Local industries are being given a boost by the increase of commodity levy for sugar imports to Rs. 16 per kg will encourage the local sugar and other substitute manufacturers. However this increase will adversely affect the local food processing industry as sugar is one of its main raw materials.

The local furniture industry is being assisted by imposing a 15% cess on importation of furniture, whilst a Rs. 200 per kg cess on all imported leather products will assist the footwear industry. In addition, importation of raw material for the leather industry is made free from import duty and VAT.

However the cess on paper imports, we fear will have an adverse impact on the packaging industry including making our exports uncompetitive.

Ayurveda sector will gain by increase of cess on the imports of Ayurveda medicine. Import cess on readymade garments and other clothing material was increased by 50% to give a boost to the local handloom industry.

Increasing the cess for importation of certain electricity items, ceramicware and products like chocolates and biscuits by 50% will enhance the competitiveness of local products.

Other local industries such as Jewellery industry will benefit as the raw material such as silver and copper used in the local industry is made import duty and VAT free. To promote the local production of salt, import duty of Rs. 10 kg is welcomed.

 

Kerosene price reduction helps fisheries - Deputy Minister

Shirley WIJESINGHE

Commenting on Budget 2009, Deputy Minister of Fisheries Neomal Perera told Daily News that reduced prices of kerosene was a real relief for multi-day trawler fishermen. They could cut down their fuel expenses by Rs. 25,000 per one trip, he said.

'' This budget is specially for the ordinary people. A price reduction of Rs.20 in kerosene a big boon for lower middle income earners'', Deputy Minister Perera said.

Perera said more allocations have been made through Budget 2009 for the development of infrastructure facilities in rural areas. More than Rs.16 billion has been allocated for the Ministries of Nation Building for the development of East as well as the North after liberalised from LTTE grip to restore democracy.

These allocations will be applied to rehabilitate roads , schools , hospitals and water supply projects through The Maga Neguma and Gama Neguma master development drives. He also appreciated the Government proposal to extend the subsidy of fertiliser to the plantation sectors too. '' I see the proposals of Budget 2009 as a practical application for the benefit of the small man and not restricted to mere words'', Perera said.

People-friendly budget proposals - Governor Alavi Mowlana

Dharma Sri ABEYRATNE

President Mahinda Rajapaksa has done yeoman service for the working community by presenting the fouth budget which has people-friendly proposals, Convener of the Trade Union Joined Federation, Governor Alavi Mowlana said.

"Even though almost all countries in the world are struggling with the present financial crisis, the President has to be praised since he has suggested a number of benefits for the working class such as increasing the cost of living allowance by Rs. 1,000 while the pensioners cost of living allowance has been increased by Rs. 560, the festival advance has also been increased upto Rs. 5,000, Mowlana said.

"Inflation is a common problem for all countries. But the President has introduced proposals to bring down fuel prices and to bring down the cost of living as we Sri Lankans use petroleum fuel for various sectors such as transport, fishing, generating electricity and much more", Mowlana said.

The President has also considered the brave security personnel. The monthly allowance of a soldier has been increased by Rs. 2,000.

Therefore the budget is people-friendly. Moreover the budget is targeted for benefiting the working community", he said.

Ceylon Chamber on the budget

The Budget has been presented in a difficult and challenging environment. Globally, growth forecasts for both developed and emerging economies are being downgraded following the financial crisis spreading to the real economy. This has slowed down growth in demand for our exports, and may also affect investments adversely.

While the Budget spells out the revenue and expenditure plan for a year, the current economic environment requires a review of the local and international developments to identify various measures that may be required to mitigate risks and exploit opportunities for the economy. The Ceylon Chamber of Commerce acknowledges the opportunities granted and efforts made by the Government to consult the various stakeholders in formulating the Budget for 2009. We stress the importance of continuing this dialogue.

The Chamber is in the process of reviewing the proposals in greater detail and, will in due course make submissions on implementation on the proposals.

We will extend our fullest co-operation and look forward to working closely with the Government in assisting to implement the proposals and addressing issues that emerge in the future.