Budget Proposals for 2016 by Minister of Finance

Given below in summary-form are the budget proposals presented to parliament at the Budget Speech for 2016 by Finance Minister Mr. Ravi

Special facilities are afforded to annual tax payers of over Rs. 25 million. In the meantime VIP facilities at the airport, priority at government establishments, invitations to government festivals and a confrontation between the President and the Prime Minister are among them.

Steps would be taken to reduce the fee of dollar 9 cents to dollar 3 cents charged for telephones for calls received from overseas. The Gambling Tax per year would be increased to million 400. The  brick industry would be released from tax for a period of 3 years. Limits on VAT would be confined to 12 million while all retail and wholesale trade would be free of tax. Share market transactions, security for constructions and tourist development taxes would be free of tax. An extra tax of 25% will be levied on tobacco, alcohol and casino businesses from the private income. The tax for betting and gaming businesses will be increased upto 400 million. Limitations on PAYE Tax would be Rs. 2.4 million and 15% tax would be levied on a similar value for earnings of a higher rate.

While tax on potatoes will be brought down by Rs. 25, the cost for a kilo of potatoes would be 75 - 80. The tax on big onions would be reduced by Rs. 25 and a kilo will be 85 - 95. Infant milk food would be reduced by Rs. 100. The maximum retail price for a kilo of chick peas will be Rs. 169. The control price for dhal will be Rs. 425. The maximum retail price for 'katta karawala' will be Rs. 1100. A tin of canned fish of 425 grammes would be reduced by Rs. 125. The maximum price of a packet of 400 grammes local milk will be Rs. 296. The price of a gas cylinder of 12.5 kilos would be brought down by Rs. 150. The cost of kerosene oil too would be reduced by Rs. 10.

Rs. 50 million would be allocated for development of the potential of members of parliament. A new access route from Peliyagoda to Fort. Steps taken to increase the minimum salary of trained and untrained workers for those employed overseas would be increased to dollars 300. A new pension scheme for those enlisting for government service from January 1st. A sum of 450 million will be allocated for the innovation of Kelani Valley Railway route. Rs. 4000 million would be allocated for the innovation of the road accessing to Colombo across Kelani Bridge. The Central Expressway route would be extended upto Jaffna across Dambulla, Polonnaruwa and Mulaitivu. Industries would be established on either side of expressways.

An institution to launch a process for pensionable members' fund would be established. Steps will be taken to provide a formal training to persons engaged in overseas diplomatic services and the government to undertake all expenses incurred in educational activities of their children. A proposal to establish an institution to implement the Steps would be taken to bestow a pension scheme for government servants joining newly from the month of January. With the agreement of trade unions, steps would be taken to amalgamate the Employees' Provident Fund and Employees' Trust Fund.

The Ceylon Transport Board would be invited to conduct a study on the production of buses by joining hands with local institutions. Opportunities would be enquired into to produce buses for the CTB within the country itself. The proposal to amalgate the Employees' Provident Fund and the Employees' Trust Fund would be arrived at after the compromise of the government with the trade union. Vehicles hitherto will not be purchased for the government. Vehicles would be taken according to the. Government servants who make use of their own vehicles without official vehicles in addition to fuel allowances will be entitled for an allowance of Rs. 50000.

It has been proposed to turn Mattala Airport into a centre of directing air cargo and also to grant tax concessions. Proposals have been put forward to erect internal airports in Digana, Badulla and Buttala areas. Also a proposal to establish a new company by combining the Petroleum Corporation with a new private company and to manage the 99 tanks in Trincomalee. Rs. 250 million will be provided to connect government institutions and the police by making use of the. Rs. 100 million would be provided for the technical training of traffic police officers through the National Police Academy.

A special unit will be established for the management of Southern Expressway and the Katunayaka Expressway route. The private sector is welcome to invest in this venture. A unit for security purposes would be installed to provide security for Norechchole Coal Power Plant. There will be no change in ownership in that connection.

New cancer hospitals will be erected in Nallur, Kandy and Matara. Rs. 30000 will be allocated within two years to remove salary anomalies of police officers. Rs. 1000 million will be allocated to increase the number of police stations from 428 to 600. A sum of Rs. 6500 million would be allocated to establish 1000 Dialysis centres for area with patients suffering from kidney ailments, Rs. 2000 million to construct a hospital for kidney patients, Rs. 30000 million for establishing three cancer hospitals, Rs. 3000 million for the development of hospitals in Kurunegala and Jaffna and Rs. 200 million for mobile hospitals.

Lands left neglected in schools would be subjected to cultivation in association with the private sector. A part of the earnings are to be diverted to schools. A percentage of 5,51 has been directed on behalf of education from the gross national income. A sum of 90000 has been kept aside for education. Rs. 300 million would be kept aside to transform all universities into wi-fi zones. A Mahapola University will be opened in Malambe. Opportunities will be provided there to study International Technology, English, Management and other courses. For that purpose a sum of Rs. 3000 would be allocated. A loan devoid of interest for 3 years would be made available for university students to acquire laptops. University students would be provided hostel facilities until their education is over by the year 2018. A percentage of 30 has been increased for higher education from expenses spent from the budget. Overseas students returning to Sri Lanka would be provided with financial assistance necessary for them. Steps are taken to give a period of 5 years training for all teachers to increase the quality of education.

40000 million would be granted for sanitary services of all schools in the island, 20000 million to provide electricity facilities and Rs. 1000 million to 10000 primary schools. Rs. 15000 for the development of secondary schools, 30000 million for schools which has not come into focus, 250 million for schools attached to the plantation field, 450 million to provide laboratory facilities and 250 million to uplift dental health have been allocated. Attention is being paid to increase the monthly salary of the private sector by Rs. 2500 and the private sector which was given Rs. 2500 from the last budget are not affected by this. A five day period of duties will be approved for employees of the private sector. Through this process they are afforded more free time while on the other hand the administrations costs of institutions would diminish. A part-time system of employment would be established for employees of the government and the private sector as well. In order to avoid shortcomings of the share market, steps will be taken to amend the Exchange Act.

Bank institutions have given consent to to have bank accounts opened for a minimum value of Rs. 250 for students gaining admittance to school. A market voucher system is to be adopted in the case of school uniforms. 5.41 is to be allocated to education. .....Rs. 2500 million is to be set aside for the enhancement of water and sanitary amenities in all schools in the island. It has been made compulsory that every child is to follow his or her education for 13 years of school education or an institute of vocational training. Rs. 10000 million has been set aside for the development of 3577 primary schools.

Witholding tax would be removed. The import tax levied on printed books, journals and magazines has been withdrawn. It has been proposed that the assessment charges expected to be met by motor cycles and three-wheelers per year be made Rs. 2500. As for other vehicles that value stands at Rs. 15000.

In the instance where the private sector operates in connection with the government, all payments expected to be paid to the government across a separate account had to be inevitably paid. The Divineguma Fund would be affiliated consolidated with with the National Savings Bank. It has been proposed to establish an international financial centre in Colombo, D.R. Wijewardena Mawatha. No change is effected in import taxes levied in the case of textiles, shoes and electronic items.

The private sector is encouraged to import machines that purify deep sea sand with the objective of providing raw material without any shortage for young men and women for the industry which provides training courses to them connected to the tourist hospitality field for which they show a liking. 4.5 billion has been set aside for thousand houses in each electorate. A proposal to provide a loan of 10% in the instance set aside for the agricultural industry, from banks. 500 million has been set aside for the purpose of developing Galle Fort by inviting international banks and financial institutions.

Taxes on garments, shoes, electrical items inclusive of 15 other items have been released of taxes. Tax concessions will be permitted on erection of private hotels. An amount of Rs. 10000 will be allocated each for 7000 young women who  are trained in masonry, electrical and aluminium work and carpentry, for which a sum of 500 million has been set aside. Taxes on imports of steel used in construction-work are to be removed. Laws pertaining to the manner in which foreign Companies coming to Sri Lanka should operate their activities would be enforced. Legal limitations on houses and property would be amended to suit present circumstances. While new rural housing projects would be proposed to be established, it is proposed to allocate a sum of Rs. 4500 million for that purpose. Steps are taken to provide a loan of Rs. 3 lakhs in stages for each house. 5 lakhs houses would be constructed within 5 years for low-income earners. On behalf of shanty-dwellers, in order to solve their problems, steps will be taken to construct 150000 houses in association with the private sector. It is expected to establish property and houses for the under-utilized. A bank would be established in the case of lands. Income tax on cranes and concrete mixing machines would be released.

A programme to encourage the public towards solar power would be commenced. The super tax will be abolished. Foreigners are eligible to invest in Sri Lankan currency across any existing bank. There will be a tax exemption of 50% on foreign investments which generate 500 job opportunities. The Board of Investment would take steps to launch a new export scheme.

The Investment Board would make arrangements to create a new form of import machinery. Taxes imposed on foreigners under the land rent-leasing scheme basis would be removed. Laws will be taken to safeguard local and foreign investors.

While a sum of Rs. 10 billion would be invested for digitalization, digital identity cards will be introduced from January 1st. It is expected that facilities would be available to conduct payment transactions in digital mode by connecting with all other banks in Sri Lanka after the securing of the digital identity card.

All government institutions are to be enveloped into one network. Rs. 2000 has been separated to create Fisheries and Agricultural zones. An institution would be installed to develop investments. There will be 50 licences devoid of tax for import of gold. Steps will be taken to develop common facilities in order to enhance the living conditions of the rural folk. 21000 would be set apart at the rate of 1500 million per village for rural development after establishing an agricultural entrepreneurship. Concessionary loans will be afforded to those engaged in the ornamental fish trade. A proposal has been made to allocate a sum of 2000 million to avoid environmental pollution and to develop an   equilibrium in the environment and also for the conservation of biological resources. A sum of 4000 million to prevent the human and elephant conflict and for the safety of wild life.

Steps to be taken to install an economic zone in Vavuniya. While the production of arecanut will be increased, steps will be taken to produce it on a commercial angle, and the value would be added in accordance with objectives of its exports. Rs. 250 million would be set apart for coconut production and its rehabilitation. While steps would be taken to increase the value when mixing tea, the name 'Ceylon Tea' would be intact. While laws governing imports of tea would be lessened, it is hoped that a higher income is envisaged by adding an added value to tea production.

Attention would be directed to expand local poultry production and Middle East countries as well as new markets would be involved in exporting poultry.

It is expected to extend shares of provincial plantation companies to the share market. A sum of 1 million as insurance and 760 million would be granted towards the development of the fisheries harbour.

It is proposed that the maximum price of milk powder of 400 grammes be brought down from 325 to 295. A maximum price of Rs. 50 for keeri samba and Rs. 40 for samba and Rs. 38 for for nadu has been mentioned. Under these circumstances the customer would be able to buy a kilo of rice at the price of Rs. 65. In order to prevent the price going down during the period of the harvest, stores would be equipped in a most qualititive manner. Attention would be pad to provide tax concessions in providing agricultural equipment. Rs. 1000 million will be allocated to afford the private sector .... and thus develop them. A new agricultural policy to be effected. Taxes on agriculture plant and machinery to be scrapped. A bank loan of 50% on the value of harvest that has been stored. Steps to be taken to make the country self-sufficient through agricultural crops such as dried chillies, potatoes and the like. Action to be taken to reduce taxes on business associations. Requests ignored to allot a small space from government lands for super markets for small and medium-sized industrialists are to be allocated for the private sector for Agricultural purposes.

A plan to erect small industrial gardens in Puttalam, Moneragala and Jaffna. Mass capital investment opportunities necessary for small and big scale entrepreneurs. A fund of Rs. 500 million for the assurance of small and big-time entrepreneurs. Steps to be taken to regulate micro financial institutions. The government is to be a shareholder for generating small and middle scale jobs. A pension scheme to be adopted for employers of the private sector.

A basic education for skills instead of an examination-based education system which would be thus a modernised education system. Action would be taken to provide facilities for under-.... schoolchildren.

A common transport service of a higher standard for urban areas. A solution for the increase of elderly population and for the gradual increase of population. Steps to be taken to eradicate the chronic kidney conditions and also the dengue menace. The cost of pension payments would be adjusted in a manner that it would not be a burden on the public. There will be no deductions made on payment of pensions. Neither will recruitment for government service be curtailed. Attention will be focused on alternate methods for pension payments.

The manner in which funds allocated for each ministry would be regulated from the month of January.