Sri Lanka plans to introduce a low tax regime coupled with a programme of capital allowances to be among the top 70 nations in the World Bank's Doing Business Index, Prime Minister Ranil Wickremesinghe said today.
Making an economic policy statement in Parliament, Wickremesinghe said Sri Lanka hoped to be among the top 70 nations in the Index and towards this end, the 2017 government budget proposals will include those to introduce a low tax regime coupled with a programme of capital allowances.
He said increasing exports would help Sri Lanka meet its huge debt burden.
Noting that the countries in the region such as Vietnam had gained from increasing exports for economic prosperity, he said that while Sri Lanka received only USD 10 billion from exports in 2015, Vietnam had made USD 162 billion.
The proposals for the budget - which is to be presented on November 10 - are aimed at increasing investment and job creation.
"Finance Minister will give the details of the capital allowances and the low tax regime for all direct investments for new employment creation," Wickremesinghe said, adding that new act replacing Sri Lanka's existing import and export control act will be introduced soon.
"We'll introduce a trade adjustment package for local entrepreneurs to support them connect global markets," he said.
This adjustment package will also include capital allowances for new machinery. "So they can also get the benefit of capital allowances for new equipment and machinery," he said.
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