IT, BPO, Telecom sectors to get top billing in budget

The Mahinda Chinthana Policy of the Government has identified certain sectors to be developed, for the country to become a knowledge and financial hub. To achieve this the budget will lay special emphasis on the IT BPO sector and the telecommunication sector, said a top official of the Ministry of Finance. The official said that another thrust area is agriculture and livestock, to be self-sufficient in food and liquid milk as well as other dairy products. The Government is encouraging people to have large farms.

He said that any product with local value addition will be protected from undue international competition by way of incentives. As the Government’s vision is to make Sri Lanka an international trade hub certain tax revisions will be done to make it a reality. He said that the Government is looking at many options.

The official said that if there is local production, Government will take steps to protect such industries but in the event there is no comparative advantage in manufacturing the product locally the Government will have to import such items. In this instance too there will be a mechanism to protect them. He said that in the area of capital market development too the Government is looking at various options. Though the stock market is performing well there are other areas which need to be developed. He said that other than Government securities there are many options for an investor.

Therefore the Government will look at what incentives are available and what more is needed in the form of incentives or what adjustments need to be done to encourage other options such as debentures, IPOs.

SG