National Chamber at the outset acknowledge and appreciated the Government efforts to
maintain consistency in taxation policy framework commenced last year with introduction of
certain tax cuts and relaxations, without resorting to ad-hoc revenue enhancement measures
in the midst of extremely difficult times confronted with Covid-19 pandemic on behalf of the
membership, business community and general public at large.
We observe the budget proposals deliberated under agriculture, local dairy industry, fishery
economy, plantation, etc with budgetary allocations under the Ministries of Agriculture,
Irrigation, Water Supply, Plantation, Trade, Fisheries and Land, etc together with wide
spectrum of tax exemptions extended would auger well for SMEs of the economy where
National Chamber having remarkably high level of representation.
National Chamber is cognizant that budgetary framework revolves around the sustainability
of local entrepreneurship under “Vistas of Prosperity and Splendour” while keeping certain
import restrictions in order to maintain economic stability of the economy as elaborated
under Foreign Trade and National Economy of the budget speech. We sincerely expect that
the Government would endeavour to reconnect with global value chain eventually starting
with the regional trade collaborations at the appropriate time moving forward.
We are of the view that up-skilling of the technical know-how of the local work force would
be of paramount importance in order to improve productivity level and quality of the output
of the local entrepreneurs. While appreciating budget proposals directed towards in the areas
of technological infrastructure, connect Sri Lanka, techno parks, distance education, and
specifically opportunities for vocational education and expansion of university facilities we
stressed that such efforts need to be continued under “Vistas of Prosperity and Splendour”
vision of the government in order reap the benefits in the medium and long term horizon.
Finally, we are of the view that the successful implementation of the budget proposals of
2021 hinges on the achieving the revenue targets of the government which would be
challenging under current prevailing circumstance and expect more light will be shed in this
area through deliberations within next few days finally extending the assurance in the minds
of rating agencies, investors and foreign financing agencies.
The National Chamber of Commerce of Sri Lanka
18 November 2020

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