Budget 2012:

Overseas business co-operation, a reality

by Jagath C. Savanadasa - President Sri Lanka -Nepal Business Friendship Business Council

The Sri Lanka - Nepal Friendship and Business Council notes that the Budget proposals contain excellent projections that will enable the country to progress, once they are implemented.

It is also encouraging to find that the proposals will not cause undue difficulty to any section of society.

This should be the vision and goal of a national budget. It also has taken into consideration the elderly, retired and pensioners, granting them a measure of relief.

As a Business Council we are pleased that there is a devaluation of the rupee. Many key institutions in their pre-budget representations had called for a flexibility of the exchange rate and suggested a devaluation in the face of external realities.

Hopefully, the devaluation will help to improve export earnings or at least sustain current levels of earnings.

We are of the opinion that a significant budget proposals relates to overseas business cooperation announced by President Mahinda Rajapaksa. The President said that he intended to exchange technical services with countries of parallel economic standing or lower than Sri Lanka's. He hopes to allocate Rs. 2500 m in this respect and utilise expertise and experience available in the government sector in areas such as poverty alleviation, rural economic uplift, construction, health and irrigation.

It is our belief that Nepal could be a friendly country in the South Asian region that could benefit from this proposal.

There is an added dimension in this proposal, if implemented effectively our experts in the fields referred to could help develop the areas outlined in certain countries. In the process they also could acquire for themselves a reputation which could stand them and the country in good stead for the future, internationally.

The budget proposals also outlined the proposals to establish joint ventures between tea producers and export companies and the reduction of income tax payable by such ventures.

These companies should be engaged in the export of tea under Sri Lankan brand names to quality for the concessions.