The International Chamber of Commerce of Sri Lanka (ICCSL) welcomed the 2021 budget proposals presented in Parliament recently by Prime Minister and Finance Minister Mahinda Rajapaksa.
ICCSL Chairman Dinesh Weerakkody noted that the budget proposals can be described as progressive and business friendly, with emphasis and focus on encouraging local entrepreneurship, skills development, boosting exports, and fostering local SMEs (small and medium enterprises). 
He further stated that the budget proposals have been presented in the backdrop of perhaps the most challenging and difficult of times in the history of budget making due to the unprecedented global crisis precipitated by the Covid-19 pandemic. Despite the same, the proposals contain significant and positive measures to strengthen the country’s macroeconomic framework, stabilising trade, reviving exports and services, enhancing the investment climate, and capacity building in local production volumes and capabilities, as a key strategy.
The Chamber noted with particular appreciation, the proposals to provide investment relief for several “thrust sectors”; public investment, promotion, and greater development of capital markets; and measures to create a resurgence of the SME sector and startups.
The Chamber also welcomed the Government’s commitment towards the continuity of its tax policy and the measures to strengthen the tax administration regimen.
It is the view of the Chamber that there should be comprehensive stakeholder engagement prior to the implementation of the proposals to amend the retirement age of private sector employees and contribution of 0.25% of turnover towards an insurance fund, taking into cognizance the many challenges which the private sector is currently facing due to the effects of the coronavirus pandemic and critical reforms necessary in labour market practices which are a “sine qua non” today in attracting foreign direct investment (FDI) as well as local investment for productive and sustainable private sector development.
Weerakkody further opined that prudent debt management, export promotion, and a structured relaxation of imports, especially for the competitive sourcing of raw materials, would become necessary in 2021 to support local manufacturing.
The ICCSL, in its capacity as the domestic chapter of the Paris-based International Chamber of Commerce (ICC) that represents over six million member companies and 43 million members globally in over 130 countries, looks forward to an ongoing engagement with the Government with respect to the implementation of the budget proposals.
He further stated that the budget proposals have been presented in the backdrop of perhaps the most challenging and difficult of times in the history of budget making due to the unprecedented global crisis precipitated by the Covid-19 pandemic. Despite the same, the proposals contain significant and positive measures to strengthen the country’s macroeconomic framework, stabilising trade, reviving exports and services, enhancing the investment climate, and capacity building in local production volumes and capabilities, as a key strategy.
The Chamber noted with particular appreciation, the proposals to provide investment relief for several “thrust sectors”; public investment, promotion, and greater development of capital markets; and measures to create a resurgence of the SME sector and startups.
The Chamber also welcomed the Government’s commitment towards the continuity of its tax policy and the measures to strengthen the tax administration regimen.
It is the view of the Chamber that there should be comprehensive stakeholder engagement prior to the implementation of the proposals to amend the retirement age of private sector employees and contribution of 0.25% of turnover towards an insurance fund, taking into cognizance the many challenges which the private sector is currently facing due to the effects of the coronavirus pandemic and critical reforms necessary in labour market practices which are a “sine qua non” today in attracting foreign direct investment (FDI) as well as local investment for productive and sustainable private sector development.
Weerakkody further opined that prudent debt management, export promotion, and a structured relaxation of imports, especially for the competitive sourcing of raw materials, would become necessary in 2021 to support local manufacturing.
The ICCSL, in its capacity as the domestic chapter of the Paris-based International Chamber of Commerce (ICC) that represents over six million member companies and 43 million members globally in over 130 countries, looks forward to an ongoing engagement with the Government with respect to the implementation of the budget proposals.