Country’s premier private sector lobby the Ceylon Chamber of Commerce yesterday said that the National Budget for 2023 presented by President and Finance Minister Ranil Wickremesinghe contains many laudable reform proposals which, if implemented in a timely manner, will complement the on-going fiscal reforms outlined.

The Chamber in a statement said it is refreshing to see that the direction of the Budget is towards reforms as compared to unsustainable relief measures seen in past Budgets.

However, the Budget for 2023 falls short in outlining specific and concrete measures to curtail discretionary recurrent expenditure and provide greater accountability for Government spending, which the Chamber has highlighted in its recent statement in response to the proposed tax hikes.

The reduction in allocation towards discretionary expenditure could have also facilitated a greater allocation towards social protection programs.

The lack of implementation of Budget proposals in successive national Budgets has reduced the credibility of the national Budget process and limited the reform process only to the speech. The implementation of National Budget 2023 with set timelines and goals will provide credibility to the Budget process as well as the success of reforms.

“We hope the proposed Presidential Task Force established to monitor the implementation of Budget proposals will be proactive in sharing updates on a timely basis with the public providing accountability and transparency,” the Chamber said.

It acknowledged that the Budget aims to address many of the issues faced by entrepreneurs and investors related to land, labour, productivity and tariffs.

“The CCC welcomed the plans to establish several new economic zones to attract foreign investment and suggested that infrastructure development and management of these zones are entrusted to the private sector under a PPP framework.

Leasing out unutilized and unproductive land belonging to JEDB, SLSPC and LRC to grow exportable crops is also a positive move to release more land for economic activities that can boost forex inflows,” the Chamber said.

It pointed out that there is a significant focus on tax administration in line with the Chamber’s pre-Budget proposals such as the appointment of a Tax Ombudsman and introducing a Charter covering rights and obligations of taxpayers.

“We feel the output from the proposed Presidential Taxation Commission as recommended by the Chamber will assist in avoiding ad-hoc changes in taxation as seen in the last few years. Proposals on rationalizing the tariff structure including the phasing out of para tariffs will also be key in driving trade and investment,” the Chamber said.

The reiteration of the commitment made in the interim Budget to introduce a new, updated and unified labour law balancing the interests of both employers and employees is noteworthy.

The Chamber also welcomed the proposals to establish an unemployment insurance scheme and a health insurance scheme for private sector employees through the Employees Trust Fund. Reintroduction of paying wards in Government hospitals is also a step in the right direction.

The Chamber pointed out that the proposed growth of 64% in Government revenue will require economic activity to rebound and complement the improvement in tax administration and higher tax rates. “As such, proposals with a view of enabling growth to reach a sustainable path and improving capital formation would have been desirable in the Budget.”

As the premier body representing the private sector, the Ceylon Chamber of Commerce said it stands ready to assist the Government in driving a progressive reform agenda and engaging with the proposed Taskforce for implementation of the Budget.

1. Central Bank accepts a massive T-Bill “special issue” of Rs.130 bn on 15th November: “money printing” under Governor Dr Weerasinghe reaches a staggering Rs.840 billion: average “money printing” per day under Weerasinghe rises to Rs.3.8 bn: under Governors Lakshman and Cabraal it was Rs.2.2 bn.
   
2. Elections Commission Chairman Nimal Punchihewa assures Opposition political parties that the Local Govt elections will be held prior to 20th March 2023.
   
3. State Minister of Finance Ranjith Siyambalapitiya says Budget 2023 is not a futile document: rejects allegations that international influences shaped budget: says income tax files must be opened for all MPs.
   
4. President Ranil Wickremesinghe instructs officials to implement the Singapore – Sri Lanka Free Trade Agreement immediately.
   
5. National Council Sub Committee on Economic Stability Chairman Patali Champika Ranawaka says Sri Lanka has been too late to seek IMF assistance: previously, the Govt and Central Bank were confident of obtaining funds from IMF in about 6 months: now the expected date of disbursement is being shifted regularly.
   
6. Cinnamon Gardens Police inform the Magistrate’s Court that former MP Hirunika Premachandra gives hugs to Police Officers during public protests as a tactic to make them uncomfortable: say they believe it is her ‘modus operandi’.
   
7. Shares slip over 2% to their near 3-1/2 month low: brokers say investors seem to respond to impacts of Budget 2023 policies: less than expected quarterly earnings 3Q22 also dent bourse.
   
8. FR petition filed requesting annulment of the promotion to Bimshani Jasin Arachchi as the first Police DIG in history: petition fixed for consideration on 18th May 2023 by the Supreme Court.
   
9. Department of Immigration increases passport charges with immediate effect: new charges – Rs.5,000 for issue of passports under normal service and Rs.20,000 for one-day service.
   
10. South African President Cyril Ramaphosa arrives in Sri Lanka for a short visit after attending the G20 Summit: meets with President Ranil Wickremesinghe at the Katunayake Air Force base: holds discussions on bilateral issues.

The Non-Resident High Commissioner of Singapore Chandra Das called on Minister of Foreign Affairs Ali Sabry on 15 November, 2022 at the Ministry of Foreign Affairs, during his official visit to Sri Lanka from 13 – 18 November, 2022.

Foreign Minister Sabry and High Commissioner Das held discussions on a wide range of issues related to enhancing bilateral cooperation between the two countries. The High Commissioner was accompanied by a business delegation from Singapore. The Minister briefed on areas and opportunities available for potential investment and business from Singapore. 

High Commissioner Das also called on State Minister Tharaka Balasuriya and discussed issues related to finance, investment and tourism between the two countries.

High Commissioner Das would also call on the President, the Ministers of Trade,  Commerce and Food Security and Health, as well as the Chairman of the Board of Investment and the Ceylon Chamber of Commerce, during his visit to Sri Lanka.

Ministry of Foreign Affairs

Colombo

16 November, 2022

The Prime Minister of India Shri Narendra Modi is participating in the ongoing 17^th G20 Summit meeting being held in Bali, Indonesia. Prime Minister addressed the food and energy security session today. He will also attend other key sessions on digital transformation and health. At the closing ceremony of the summit, President of Indonesia will hand over the G20 Presidency to the Prime Minister of India. India will officially assume the G20 Presidency from December 01, 2022 which will continue till November 30, 2023. 

2.  On November 08, 2022, Prime Minister launched the logo, theme, and website of India’s G20 Presidency. The theme of G20 Presidency “Vasudhaiva Kutumbakam” or “One Earth One Family One Future”- is drawn from the ancient Sanskrit text of the Maha Upanishad. The theme affirms the value of all life – human, animal, plant, and microorganisms – and their interconnectedness on the planet Earth and in the wider universe. It also spotlights LiFE (Lifestyle for Environment), with its associated, environmentally sustainable and responsible choices, both at the level of individual lifestyles as well as national development, leading to globally transformative actions resulting in a cleaner, greener and bluer future.

3.     The G20 Logo draws inspiration from the vibrant colours of India’s national flag – saffron, white and green, and blue. It juxtaposes planet Earth with the lotus, India’s national flower that reflects growth amid challenges. The Earth reflects India’s pro-planet approach to life, one in perfect harmony with nature. Below the G20 logo is the word “Bharat”, written in the Devanagari script.

4.     The logo and the theme together convey in clear and powerful terms the central focus of India’s G20 Presidency. The uniquely Indian approach to G20 Presidency will highlight living in harmony with the surrounding ecosystem and strive for just and equitable growth for all in the world, in a sustainable, holistic, responsible, and inclusive manner, as we navigate through these turbulent times. 

5.     The G20 Presidency offers an opportunity to India to contribute to the global agenda on pressing issues of international importance. For India, the G20 Presidency also marks the beginning of “Amritkaal”, the 25-year period beginning from the 75^th anniversary of its Independence on 15 August 2022, leading up to the centenary of its Independence in 2047, towards a futuristic, prosperous, inclusive and developed society, distinguished by a human-centric approach at its core. 

6.    During the course of its G20 Presidency, India will hold about 200 meetings in 32 different sectors in multiple locations across India. The G20 Leaders’ Summit will be held in New Delhi on September 9-10, 2023. Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain and the UAE will be invited as “guest countries”.

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Colombo

November 15, 2022