The new government will take meaningful measures to reverse the negative trend on the Sri Lankan rupee and appreciate it to Rs. 160 in 2019 and by 2020 bring it up to Rs. Rs. 140, said Minister of International Trade and Investment Bandula Gunawardana. He added that they are also working towards appreciating it to Rs. 160 against the Dollar within a year.
He said that the appreciation of the US dollar is not something that is happening in Sri Lanka and the present political scenario is not related to it.
The Minister also said that the new government is not only keen to encourage foreign direct investments but also egg on local entrepreneurs to invest in Sri Lanka. “The government would offer series of tax holidays and other encouragement especially to those approved by the Finance Ministry to woo FDI to Sri Lanka. This is the best solution to control the depreciation of the Sri Lanka rupee.”
“A special tax holiday of five years would be given to investments approved by the Finance Ministry,” he said. The minister said that Sri Lankans based overseas were reluctant to remit their hard earned money back to Sri Lanka fearing that unwanted taxes would be imposed on them. “We estimate that more than $ 8 billion has not been disclosed due to those tax policies.”
The recently imposed taxes that discouraged people from sending remittances back to Sri Lanka would be taken off in the next Appropriations Bill,” he said. The minister said that tax concessions would also be offered to imported raw materials for apparel products, including machinery.
He also said that local entrepreneurs too had second thoughts to re-invest due to high and uncalled-for taxes and these too would be removed and a special incentive package would be spelled out soon.
(SS)
0 comments: