'Country should benefit from peace dividend'

by Lalin FERNANDOPULLE

The business community said last week the new President elect should ensure political stability and create a conducive environment for economic growth in the country.

It is significant for the country as it has ended a war that blocked political stability and prospects for economic growth.

President of Young Entrepreneurs of Sri Lanka (YESL) Patrick Amarasinghe said the country should benefit from the dividends of peace and all election pledges should be fulfilled. He said the high and complex tax structure should be simplified to help Micro entrepreneurs to develop their businesses.

"A tax-friendly environment will help reduce the number of defaults by Micro Entrepreneurs and encourage them to expand businesses", he said.

"The limited access to funds by the SME sector has hampered growth in rural industries. Banks should lend without seeking collateral from the SMEs for loans", Amarasinghe said.

President, Sri Lanka Chamber of Small Industries, Aloy Jayawardene said banks should honour requests made for loans from the SME sector without looking for security.

"The SME sector cannot purchase machinery and expand industries due to the need for collateral and taxes on imported raw material", he said.

Chairman, All-island Poultry Association, Dr. D.D. Wanasinghe said the high cost of poultry feed has plunged the industry into one of its worst situations and measures should be taken to stop the poultry feed mafia which is getting out of control. A new level playing field has to be created if the industry is to survive", Dr. Wanasinghe said. General Manager Waters Edge Hotel, Thusitha Samaraweera said work on the Kalpitiya tourism development zone and the East coast which is ideal for tourism should be expedited to attract a larger number of tourists this year.

"Aggressive promotional campaigns to tap the Japanese and the USA markets are needed if Sri Lanka is to achieve the target of two million tourists by 2016", he said. Chairman, Planters' Association of Ceylon, Dhamitha Perera said each plantation company has to bear around Rs. 35 million a year due to the tax burden imposed on the sector.

"The Association requests for a retention of the zero rated VAT enjoyed by the plantation sector and also Cess Funds to be ploughed back to the industry", he said.

Chairman, Aitken Spence Maritime Cargo, Dr. Parakrama Dissanayake said the delay to implement the Colombo South Harbour Expansion Project has caused immense loss to the port sector and shipping lines.

"Regional ports will gain if the port sector development is not completed on schedule", he said.

Senior Banker and Capital Market Analyst, Mangala Boyagoda said since domestic savings are low the country would need to attract more foreign capital for development.

"Earlier the customer was the king but in the modern context the investor is the king. More investments will help stimulate the economy", he said.

Central Bank Governor, Ajith Nivard Cabraal outlining the bank's Road Map for 2010 urged the Government to cut down on unnecessary expenditure and use funds for development activities in the country.