'Development-centric budget'

By Lalin Fernandopulle

Top corporate personalities commended the 2013 Budget as a development-centric budget with a mixture of benefits to various segments of society.

The Chartered Institute of Logistics and Transport, past chairman, Dr. Parakrama Dissanayake said, "In the context of the financial woes in the developed world, I consider this Budget as a development- centric one with a mixture of benefits to various segments of our society."

Tax incentives granted to new organisations that list in the Colombo Stock Exchange is an attractive proposal which will create transparency and accountability the foundation for good governance in organisations.

Insurance Association, President Ramal Jasinghe said that there are many proposals in the 2013 Budget to promote capital market development which will impact favourably on the insurance industry.

The one percent levy from the annual profits of banks, finance and insurance companies to create a crop insurance scheme through the NITF will burden insurance companies, banks and finance companies. If a crop insurance scheme is to be developed, it could have been done by creating a separate entity or a pool without levying an annual charge of this nature, he said.

Chevron Lubricants Lanka PLC, CEO Kishu Gomes said that given the global economic backdrop the government has done its best to maintain the growth momentum in the short-term while creating the right platform for enhanced growth rates in the medium to long-term.

The proposals for fiscal management and various incentives to local manufacturers would help local currency to achieve stability and help local manufacturers who depend on imported raw materials.

The decision to maintain corporate and personal taxes speaks for consistency in policy. Tax incentives to companies listing in the stock exchange with a 20 percent float will encourage more entities to list in the stock market that will bring out many benefits across several stakeholder groups, he said. Exports are further encouraged based on the direction taken a few years ago. Additional support for agriculture and livestock will help drive economic growth at rural level which will help Sri Lanka to be less dependent on imports.