Offshore supply chain to SL for re-exporting
The Indian CEO Forum has advocated for Indian businesses to offshore part of their supply chain in Sri Lanka to re-export back to the Indian market, as Budget 2018 commits to eliminating up to 1200 para-tariffs.
Indian CEO Forum President, Umesh Gautam, who is the pre-eminent representation for Indian investment in Sri Lanka, made these comments issuing a statement on the government's 2018 Budget as part of its vision 2025 plan.
He said that geographically, Sri Lanka enjoys closer proximity to the Southern states of India than many of the Indian states in the North of the country, and that this an opportunity to compete for Indian domestic manufacturing capabilities if the right incentives are in place.
He highlighted that this Budget commits to eliminating up to 1200 para-tariffs which he said will help Sri Lanka integrate into international production networks by reducing input costs from imports to local manufacture. He also said that this strategy will greatly boost maritime trade and help Sri Lanka achieve its goal of becoming a regional trading hub.
The full statement is reproduced below: The Indian CEO Forum welcomes the proposals made by Finance Minister, Mangala Samaraweera for the forthcoming year through the new Budget. Without delving into the minutiae of the Budget, we would like to express our views on some of the broader policy objectives prioritized in the Budget from a foreign investment perspective.
The Indian CEO Forum represents some of the earliest foreign direct investments into Sri Lanka. These Indian investments have deep roots in the economic prosperity of Sri Lanka and are present reminders of the merits of foreign direct investment, the release added.
Despite the post-war potential, Sri Lanka has perpetually lagged in Foreign Direct Investment entering the country and this has contributed to its fiscal weakness. This year's Budget, dubbed the "Blue-Green budget; the Launch of Enterprise Sri Lanka" builds on the fiscal consolidation progress made over the last year while placing greater focus on structural reforms, trade liberalization, sustainability and unleashing the entrepreneurial spirit in Sri Lanka.
Since taking office, this Government has been unequivocally clear in its objective to address Sri Lanka's fiscal weaknesses and external debt situation as these issues permeate into factors such as monetary policy and exchange rate stability, important considerations for foreign investors. To their credit the Government has made progress since 2016 as revenue collection has improved whilst the deficit is expected to be 5.2% this year, down from 5.6% in 2016. We remain optimistic on the successful implementation of the new Inland Revenue Act, which closes loopholes, introduces capital gains and broadens the tax base.
In the World Bank's recently published 'Ease of doing business' index Sri Lanka was ranked 111th out of 190 nations indexed. This government's vision 2025 plan targets reforms that will push Sri Lanka to be in the top 70 positions on the index by reducing and streamlining regulatory red tape. Therefore, it is encouraging that this years' Budget has an ambitious legislative reform agenda. A strong, fair and efficient legislative framework is very important to ferment a positive business environment while digitization and simplification of processes, and approvals will promote private sector investment. Timing and expediency will be important as all too often we see delays in implementation, an example being the Foreign Exchange Act.
The focus on sustainability and the environment by way of incentives, a carbon tax, duty changes, solar power promotion, waste disposal initiatives, and coastal conservation measures are commendable and an important first step to a larger policy discussion on how to move Sri Lanka towards a clean and environmentally friendly economy. This is one area where Sri Lanka can distinguish itself from its South Asian peers if it embraces the principles of a sustainable green economy. In this regard, one area that this Budget under represented was the state of public transportation in Sri Lanka. The state of public transportation has far reaching consequences pertaining to productivity, pollution and international branding and appeal. As Sri Lanka aims to transition to an upper middle-income country, it is incumbent on the Government to provide a transport solution that reflects this and distinguishes itself from its peers. Solutions range from prolonged multi-year infrastructure investment to more cost-effective methods like effective scheduling utilizing a product mix for peak and off-peak, ensuring environmental standards and quality of service.
The Indian CEO Forum advocates for Indian businesses to offshore part of their supply chain in Sri Lanka to re-export back to the Indian market. Geographically, Sri Lanka enjoys closer proximity to the Southern States of India than many of the Indian States in the North of the country which is an opportunity to compete for Indian domestic manufacturing capabilities if the right incentives are in place. This Budget commits to eliminating up to 1,200 para-tariffs which will help Sri Lanka integrate into international production networks by reducing input costs from imports to local manufacture.This strategy will greatly boost maritime trade and help Sri Lanka achieve its goal of becoming a regional trading hub.
Gautam heads the oldest Indian investment in Sri Lanka a joint venture company of the Government, Lanka Ashok Leyland PLC stressed that this was the right time for the Indian investor to look at Sri Lanka positively and take advantages of its economic prosperity planned in the Budget / Vision 2025 for Sri Lanka, the release concluded.
Ministry Secretaries should be appointed on Best interest of Public not Minister Lethargy blocking change
- Action against COPE MPs caught talking to Aloysius Speaker to meet party leaders this week
- UNP furious over phone tapping CID, AG’s Dept blamed for ‘media show’
- Treasury Bonds Probe AG to question PM
- Gintota clashes 19 remanded Govt on desperate mission to arrest extremists
- ‘A prisoner in Indian jail on Eelam soil’
- Sagala vows to crush Aava group Police deployed in full strength
- Politico’s son-in-law in school frock drama Teacher threatened after student is reprimanded
- Lanka alarmed over increased smuggling of ‘KG’
- SC to hear Tangalle ASP assault case
- 656 kg Glyphosate nabbed
- FPTP opens gate for undesirables, warns Amunugama
- EC to issue nomination notice on 27th
- NPC Education Minister shuns national flag Sarveshwaran was Chief Guest at school event
- Geological changes in Jaffna – Academics
- Violence against children World Vision launches campaign
- Females from soldier families on SLPP list
- JO goes to CIABOC against five COPE members
- Warrant issued on Jaliya Wickramasuriya For failure to appear in court
- Appuhamy admits to communicating with Aloysius Denies wrongdoing
- Gota’s objections thrown out Avant Garde case to go ahead
- JVP to team up with the devil! Vows to defeat LG polls gazette case
- UNP and JO in ‘secret deal’ to tarnish SLFP – Dayasiri
- CID evidence on COPE members and Aloysius JO urges Speaker to investigate
- An Inconsistent US Assertive China and Asia’s Hobbesian Order
- Jorge Sharp and Citizen Movements:New Momentum for Chilean Left?
- Angelo, Lahiru prop Sri Lanka
- Ritzbury Sir John Tarbat Junior School Athletic Championship 2017 Janadhipathi BV and St. Joseph’s emerge champions
- Air Force, Police look for first win
- Navy defeat lethargic Havies
- CEB emerge Super League Champs
- Rambukwella scores ton
- ‘Singer Cup’ Under-19 Schools Cricket Buddila steers St. Aloysius
- Pelican SC win
- HNB clinch two titles
- Nadal wins defamation case
- One-legged footballer melts hearts
- Paine handed shock recall for Australia
- Italy's stars fall back to earth in Serie A
- 20th Army Para Athletic Meet 700 Servicemen and 5 Koreans in the fray 2 Korean Olympians provide international flavour
- 47 successful at AASL Technical Officers exam
- England’s May up to speed for Wallabies
- MCA Premier League 2018 MAS and DIMO into Semis
- 34th MBA Inter-Firm Team Badminton Championships 2017 McLarens Group are overall champions
- Fourteen teams for beach tag rugby
- CH in vigorous win over CR
- Aviation sector to be liberalized
- Telcos to lobby against levy
- How 5 massive Trade Deals Have Fared under Trump
- Securing the social licence to operate
- China stealthily pouring money into India
- Managing taxpayer money: Targets, promises and real achievements
- LB Finance reports solid 1H results
- HNB Group posts Rs 16.8 B PBT
- Study on the Non-Banking Financial Industry
- People’s Bank installs ATM at Ella Railway Station
- World’s fastest car redefining education
- Abans Homes Instyle: Furniture of the future
- Transforming Sri Lanka’s real estate landscape
- Access Engineering lays new road along Beira
- Should Sri Lanka become a Tea Hub?
- Amãna Takaful wins at SLIM NASCO 2017
- Glow Skincare aids flood victims through ‘Purple Fashionista’
- Seylan rewards monthly draw winners
- Turkish Airlines to offer stopover in Istanbul
- taxpayer revolt if Republicans kill deduction?
- Best Wishes
- Remembering ‘Dictionary Johnson’
- Budgetary design of blue green enterprise
- A Time of Gifts Different Perspectives
- We were forced to work like animals
- Concretes and abstracts Two comics at the Savoy in London
- Row over beer tax
- Illegal mining Muttur’s sandy secret Hundreds of tons of sand taken away at night
- PM before Bond Commission tomorrow
- BREXIT Impact on free movement of people
- Wigneswaran’s claim Devanampiya Tissa was a Tamil king An academically naïve proposition Prof Raj Somadeva
- There is no journey with the UNP
- Core values of the UNP are eroding - Pradeep Jayewardene
- UN compensation for Kuwait workers Rs 3.2 B on migrant worker welfare
- Professor Matteo Legrenzi says: Gulf States are not keen on all-out war
- An argument for a new Constitution
- ‘Otriachchi’, ‘Orumiththa Nadu’, ‘Aekeeya Rajya’ and unitary state
- A Constitutional Framework for Sri Lanka
- PAST LIFE AND RULING PLANETS IN KRISHNAMURTHI PADHDHATHI
- Build before onset of Kona Masa
- Palms of road accident victims
- Want to get rid of malefic Saturn ?
- Installing doors and windows according to Vastu
- Our children and our cinema
- INTERPRETING ASIAN CINEMA: CHALLENGES AHEAD
- How Sanskrit journalism is slowly hogging headlines
- ice manufacturing in South Asia
- CMSC’s season finale concert
- Two documentaries on Sri Lanka in Film South Asia 2017
- Politics of nostalgia
- Vibrancy of classical Sinhala poetry
- Kite Surfing Lanka Kalpitiya An experience of a lifetime
- Ella and mini Adam’s Peak
- A cave of history -Ravana Cave
- Conquering Fashion
- Gavin Ryan’s Salon Professionalism to the next level
- THE WRITER’S KITCHENETTE THE CRANBERRY ADVENTURES
- Calamitous Earthquake in Iran
- Scientists warn of ‘giant leap backward’ at climate talks
- Death of Ananda Senaratne