AmCham hails 2011 Budget:

Potential for trade, investment growth

By Lalin FERNANDOPULLE

The American Chamber of Commerce in Sri Lanka (AmCham) welcomes the 2011 Budget and the changes to the country’s fiscal and monetary framework, said President, AmCham, Vijaya Ratnayake.

He said the reduction of taxes in the banking and financial sectors and the medium term fiscal strategy are positive moves in achieving economic growth.

“The 2011 Budget marks the biggest overhaul of economic policy in recent years and it will encourage the creation of a business-friendly environment for all sectors”, Ratnayake said.

The 2011 Budget introduced a range of tax reductions and incentives for industries and export trade to boost economic growth and achieve the development target envisioned in the government’s program for the next six years.

Ratnayake said a business enabling environment will help enhance trade and investment between Sri Lanka and its trading partners.

The 2011 Budget is business oriented and will help boost investor confidence and attract foreign direct investment.

USA is a key market for Sri Lanka’s apparel exports which enjoys special trade concessions under the US GSP. Apparels account for a major share of the export earnings of the country with a workforce of over 300,000 directly benefitting from the sector.

“Trade and investment between Sri Lanka and USA will be further developed by the favourable measures introduced in the budget”, the chamber head said.

Trade between Sri Lanka and the USA has been low due to lack of awareness and promotion of products. Sri Lanka’s exports to USA in 2009 was valued at US$ 1592.28 million.

Apparel and clothing, rubber based products, precious and semi precious stones, coffee, tea and spices, plastics, fish and crustaceans, chemical products, electrical machinery and equipment and parts are some of the main items exported by Sri Lanka to USA.

Sri Lanka imports aircraft, spacecraft and parts, cereals, machinery and mechanical appliances, cotton, paper and paperboards knitted or crocheted fabrics, plastics and man-made filaments from USA.

Ratnayake said AmCham is confident that with focused implementation of the budget proposals the country will be able to achieve the desired goals of development.

The chamber plans to focus on knowledge sharing between member companies and business development through its membership with the US Chamber of Commerce and the Asia Pacific Council of American Chambers of Commerce (APCAC).

The US Chamber of Commerce is the world’s largest business federation representing the interest of over three million businesses of all regions as well as state and local chambers and industry associations.

APCAC consists of 27 members of American Chambers in 21 economies. APCAC membership manages trade volumes in excess of US$ 400 billion and direct investments of nearly US$ 300 billion.

AmCham Sri Lanka will use these resources to achieve its plans and objectives. The chamber will provide match making opportunities to its members with potential trading partners, networking opportunities for the AmCham community, setting up strategic alliances with organisations that share similar goals, facilitating good governance between member companies and establishing committees within business sectors.