Economic

Reuters: Sri Lanka’s main stock index closed higher yesterday and eked out a slight gain for the week, helped by advances in stocks of consumer staples companies.

The Ceylon Chamber of Commerce said yesterday it welcomed the proposals put forward by the Prime Minister Mahinda Rajapaksa in the National Budget 2021 which it termed as business friendly, production-oriented and demonstrative of policy continuity.

Central Bank (CB) said yesterday it raised $ 62 million afresh via Sri Lanka Development Bonds (SLDBs) on top of $ 24.8 million last week.

The International Chamber of Commerce Sri Lanka (ICCSL) yesterday welcomed the proposals presented in Parliament by the Prime Minister and Finance Minister Mahinda Rajapaksa in the Budget 2021.

The freshly-unveiled Budget 2021 policies are aimed at focusing on multiple aspects of the economy to drive forward growth, including capital market expansion, socioeconomic development and attract investment, a top official said yesterday, terming it as the bedrock for Sri Lanka’s next wave of economic expansion.

Lanka IOC Ltd. is nearing the completion of work on Sri Lanka’s first grease manufacturing plant in Trincomalee, a move which will help save valuable foreign exchange as at present the requirement is met entirely via imports.

Budget 2021 encompasses the business-friendly outlook of the Government and embeds stability, inclusivity and consistency in its myriad proposals, a top official said yesterday, insisting the key policy document anchored growth as the foundation of Sri Lanka’s future development.

Treasury Secretary S.R. Attygalle yesterday said that the upcoming special single Goods and Services Tax (GST) which is one of the major proposals in 2021 Budget will be either revenue neutral or positive as the rate will be determined prior to its implementation from January.

Customs has announced new measures to improve facilitation benefitting its users with quicker clearance of shipments and reduced cost.

The motor industry yesterday claimed that price reduction of spare parts was unlikely, despite Prime Minister and Finance Minister Mahinda Rajapaksa signalling it during the 2021 Budget presentation on Tuesday.

The 2021 Budget unveiled yesterday listed key reforms in the financial services sector including much-needed consolidation within finance companies and revamp supervision of non-bank financial institutions.

The emergence of the second wave of COVID-19 pandemic in October has impacted the performance of exports, which saw strong momentum since June.

The Free Trade Zone Manufacturers Association (FTZMA) has urged the Government to properly study the pros and cons of the proposed raise in retirement age to 60 before implementation of the 2021 Budget move.

Via the 2021 Budget presented yesterday, the Government announced several tax relief measures to facilitate post-COVID-19 recovery, especially targeting SMEs.

The Government's latest issue of Sri Lanka Development Bonds (SLDBs) worth $ 75 million concluded undersubscribed by over 60% last week.

The Board of Investment of Sri Lanka yesterday signed an agreement with world-leading Chinese tyre manufacturer, Shandong Haohua Tire Co. Ltd., to set up a project to manufacture tyres for the export market.

Prime Minister and Finance Minister Mahinda Rajapaksa yesterday urged businessmen to bring back their allegedly “hidden money”.

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