COLOMBO: Sri Lanka announced tax cuts and subsidised loans for small businesses and exporters on Thursday, amid concerns a raging drought and flash flooding could drag on economic growth.

Officials had warned the government’s growth target of 5 per cent was unlikely after floods and drought destroyed crops, homes and industries across the island.

Sri Lanka recorded 4.4 percent economic growth last year before the floods in May and the onset of drought which has affected 1.5 million Sri Lankans.

Finance Minister Mangala Samaraweera said businesses would be offered heavy-subsided loans up to 750 million rupees ($5m) and tax cuts for commercial vehicles to encourage entrepreneurship.

Households meanwhile can access incentives for rooftop solar units, while a tax on broadband would be abolished to encourage greater internet use.

“Our measures today will increase economic growth and make this country an entrepreneurs’ paradise,” Finance Minister Mangala Samaraweera told reporters.

He said the package, announced ahead of the November budget, was expected to create 50,000 jobs, despite Sri Lanka suffering a severe labour shortage in areas like construction.

Hundreds died in floods and landslide in May, while a devastating drought has ravaged small-scale industries in the north and east of the island.

Published in Dawn, August 18th, 2017

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.