Budget 2013 meets development targets

by Lalin Fernandopulle

The 2013 Budget meets the country's needs and development targets, Laugfs Holdings, Chairman W.K.H. Wegapitiya said.

W K H Wegapitiya

The country has a vital mission to achieve economic prosperity and development targets.

The 2013 Budget supports a development plan. Its bottom line is to boost business in the country. Increasing production through small and medium scale industry development is important to boost economic growth.

“Rise in production will help enhance export revenue and minimise imports and bridge the trade deficit. The prospects of economic development is shown by the Balance of Payments which is the accounting record of all monetary transactions between a country and the rest of the world,” Wegapitiya said.

Economic development cannot be reached by neglecting the capital and financial market. Wegapitiya said that the Budget has not offered direct benefit to the Liquid Petroleum Gas (LPG) sector.

The LPG industry will benefit from the support extended by the Budget for the business sector.

Sri Lanka's LPG sector comprises many players who make a salient contribution to the economic growth of the country.

When asked about the negative implications of the Budget on the retail business he said that he would not categorise the 2013 as a negative one for the retail chain business.

Retailers with an annual turnover above Rs. 50 million will be affected. Supermarkets owing to their structure spend on customer-service and infrastructure. This generates employment opportunities. Around 150-200 employees work in a supermarket which helps the production chain. Supermarkets buy perishables directly from growers supporting a large number of farmer families.

The 2013 Budget imposed a tax on supermarkets extending the Value Added Tax to retail trade targeting the big operators. Certain supermarket chain operators have put on hold investments and expansion plans due to the tax.

Wegapitiya said that the company ventured into the leisure segment with the launch of Laugfs Leisure Ltd. “We are making rapid progress and hope to set up a chain of star class hotels in the country. We are already constructing the first three of the hotel chains in Chilaw, Pasikudah and Wadduwa and hope to begin operations this year.”

“This is a gifted island with a breathtaking and unique climate and landscape. Leisure is an important business Sri Lanka can specialise on. Work which was planned and carried out during 2011 and 2012. It will be operational by 2013. Our diversification moves into different sectors will remain the highlight of Laugfs growth in 2013,” he said.