|
|
 |
 |
| Sunday, 16 February 2003 |
 |
|
 |
News |  |
| News Business Features Editorial
|
Government to relax exchange control Radical and far reaching changes to the existing economic structure are on the cards, with the government all set to abolish the Foreign Exchange Control Act and introduce a new Exchange Management Act; establish an Assets Management Company; create a new Revenue Authority and restructure the Public Service through an ordinance called the Public Management Reform. The changes, described as new initiatives, are part of a comprehensive prosperity plan that seek to rebuild the economy and put the country back on a sound economic footing. According to government sources, the plan, which is part of the ambitious 'Regaining Sri Lanka' programme, offers both short and long term initiatives that will create two million jobs over the next few years; overcome the crippling debts and return the country to a sound economic footing; find resources to rebuild the country and increase income levels through higher productivity and increased investment. Replacing the Foreign Exchange Control Act with the Exchange Management Act is expected to help attract foreign exchange held abroad by Sri Lankan and in the process increase the country's foreign exchange reserves. It is also aimed at attracting more foreign investors to engage in business in Sri Lanka. The Assets Management Company is expected to help banks recover bad debts by purchasing the non-performing loans that burden the banks. The government also plans to set up a new establishment in line with the Asset Management Company, to provide development funding for the private sector. Tax collection is to be centralised with the setting up of the Revenue Authority, which is expected to prevent tax dogging and increase tax revenue, which had dropped from 17.8 per cent in 1995 to 14.2 in 2002. The Public Service is to be restructured with the Public Management Reform which will streamline the system and trim it down to size through the 'Golden Handshake' where a generous one off payment will be made to those who wish to retire prematurely and pursue other avenues of employment. Augmenting these new initiatives, the government also plans to offer generous tax incentives for companies that put forward clear proposals for expansion with facilities for real job opportunities; formulate special programmes to develop micro and small enterprises and launch a national campaign to improve productivity of individual enterprise. On the agricultural front, the Government hopes to help farmers by initiating several projects to improve paddy production, the supply chain and the drip irrigation system. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
