'Focus on plantation sector growth vital’

by Lalin Fernandopulle

The business community has hailed the 2015 Budget as a business-friendly and development-oriented that sets the stage for accelerated economic growth and boost the quality of life of low-income families.

However, there are reservations on the lack of focus on certain sections such as the plantations which have not received the attention of policy makers in stimulating productivity and efficiency in the sector through better wages and good working environment.

Tea Exporters Association President and Heladive Group Chairman Rohan Fernando said that a key sector that has not been adequately scrutinised and strategically planned is the plantation economy which has immense potential to boost exports through value addition and branding.

It is regretted that this segment of the economy is only with regard to subsidies but not properly focused on.

As the country is free of terrorism and geared for growth, the Budget which is in effect the policy document of the Government should address different sectors with medium to long-term planning as opposed to short-term measures aimed at satisfying the masses, he said.Fernando said that it is clear the Government is on a pro-development course with the SME's being taken into account and rural agriculture also being recognised for assistance. However, the operational aspects of the envisaged development targets depend on the cooperation of the bureaucrats which is the most lethargic and often obstructive factor for growth of the economy.

The system is further retarded by the many political agencies operating in the provinces taking control of the investments thereby discouraging mega projects being launched outside the Western Province.

"If a mechanism similar to the BOI is set up where all approvals can be handled under one roof, development targets professed by the Budget can be fast tracked for successful implementation," he said.

Sri Lanka needs to concentrate on food security and water security in terms of volume, safety and energy efficiency.

The government has understood this but the Budget has not adequately addressed the issue of producing clean and healthy food sans chemical contamination and the conservation of water as a priority.

If the food intake is clean, the cost incurred for health services will decrease.

Though power generation is well focused on, the development of clean energy must also be given priority,” he said.

Sri Lanka Chamber of Small Industry President Mohideen Cader said that the 2015 Budget is a positive one aimed at developing small and medium sector enterprises which make a salient contribution to the economy.

The concessions given to SMEs such as tax benefits and loan schemes for small-scale entrepreneurs is consistent with previous Budgets.

The Budget is focused on rural development which will help bridge the income gap and improve the quality of life of the people.

"The benefits given to the agriculture sector, healthcare, training, research and development and education is commendable,” he said.

Adviser to the Ministry of Agriculture and International Foodstuff Group of Companies, Chairman Sarath de Silva said that the Budget has continued to provide concessions to all sectors and the move to support agriculture, encourage research and development, fertiliser subsidy and 350 projects to set up outside Colombo are sound moves.

Export expansion, guaranteed price for milk and paddy, loan schemes for SMEs and pension schemes for apparel sector and migrant workers will boost economic growth.

National Chamber of Commerce of Sri Lanka, Deputy Vice President Sujeiva Samaraweera said that the Chamber welcomes the move to support and promote SME development.

"The concessions for rubber and coconut industry, tax reductions for SMEs and the kapruka loan scheme will help expedite development.

We commend the move to reduce VAT on goods which will help increase the purchasing power of the people and the quality of life," he said.

Many top corporate personalities were of the same view while the Budget comprises proposals to boost the small and medium sector enterprises (SMEs) the plantation sector which consists of small holders whose problems have not been taken into account adequately.

Master Divers and Moubima Lanka Foundation Chairman Ariyaseela Wickramanayake said that the steps taken to reduce exports and boost local manufacture and consumption is welcomed.

We need to put a stop to dumping of cheap food and reduce the drain of foreign exchange on milk products which could be produced here by milking more cows.

Central Bank Governor Ajith Nivard Cabraal said that the 2015 Budget has several benefits.

Is not an election Budget as branded by those with sinister motives.

The Budget has provided benefits to all sectors and it is a development-oriented Budget focusing on empowering the rural sector.