Trade chamber hails consistency in Budget 2014

The 2014 Budget continues the support and provisions given by previous budgets to industrialists. There is consistency in the Government’s policy towards the sustainable growth of industries, Ceylon National Chamber of Industries (CNCI) Chairman Gamini Gunasekera said.

It is encouraging that the Government is targeting the reduction of the fiscal deficit to 5.2 percent of the GDP in 2014, and is determined to bring down the deficit to 3.8 percent of the GDP by 2016, which will provide a conducive environment for business. In Sri Lanka, nearly 70 percent of industries are Small and Medium Enterprises (SMEs). Providing interest-free loans of Rs. 250,000 to women entrepreneurs below the age of 68 for capital investment will boost the growth of the SME sector, he said.

The budget proposal of the concessionary direct tax rate of 12 percent to profit derived on the supply of continuous services to the export of goods and services and foreign principals will benefit indirect suppliers to the export market. Imposing a cess on some of the imported finished goods will protect local manufacturers.Providing triple deductions for research and innovations carried out internally in the apparel industry will support the Government’s vision to position Sri Lanka among the top 10 high quality apparel manufacturing countries by 2020.

-LF