Local industries being neglected by import oriented govt.: Dinesh

23 June 2018 11:13 pm - 7 - {{hitsCtrl.values.hits}}

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Joint Opposition MP Dinesh Gunawardane yesterday charged that local industries were in crisis due to the government's policy of favouring foreign industrialists and asked what action the government would take to protect local small and medium-scale entrepreneurs.

He told parliament that medium and small-scale industries were in grave crisis due to the increase in the loan interest rates, the rupee depreciation against the dollar and new taxes imposed under the new Inland Revenue Act.

"The cost of doing business here has gone up due to the increase in lending rates. Tax concessions given to industries under the 2006-10 Inland Revenue Act has been removed. New taxes have been imposed under the new Inland Revenue Act introduced in 2017 and by amending the VAT and Cess charges," he said.

Mr. Gunawardane said the local industries were at risk because of the government's lax policy on imports and allowing an influx of foreign products into the country by way of free trade agreements.

He said that production costs had also gone up due to the high cost of imported raw materials as a result of the value of the rupee falling against the dollar.

He pointed out that a number of local industries had already been taken over by foreign companies and added that thousands of local entrepreneurs were at risk of losing their livelihoods as a result.

Industry and Commerce Minister Rishard Bathiudeen said that he did not agree with the views expressed by the MP and pointed out that his ministry had not received any complaints on such matters.

The minister said no new taxes had been introduced under the new Inland Revenue Act and added that the port and civil aviation tax had also been removed for some industries.

He said a programme “Enterprise Sri Lanka" initiated by Finance Minister Mangala Samaraweera had been launched to provide loans to local entrepreneurs. (Ajith Siriwardana and Yohan Perera)

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Comments - 7

Hari Mani Sunday, 24 June 2018 05:42 AM

Did you not know it when you let the Chinese Gov in? All I see in Srilanka is substandard cheap Chinese goods. Face it and own it as you laid the foundation for the destruction of the country.

Arnold Sunday, 24 June 2018 06:14 AM

Like in many other countries ingredients and raw material should have a lower duty than finished goods. Here it is just the opposite most of the time.

Panduka Gnanasena Sunday, 24 June 2018 07:38 AM

Exchange rate does not reflect import orientation. They are mismanaging the economy crippling imports and also exports which are dependent on imports

SL Sunday, 24 June 2018 08:01 AM

Now we are going to import electricity by signing LNG plant contract with Chinese firm.Remember we are pumping out money every second we lit a light at home if we sign this agreement.as of now we are sending money to china every km we are driving in the highway.importing fuel can be justified yet importing highway facilities or electricity will harm our economy a lot.

Lord Wolfstein Sunday, 24 June 2018 10:51 AM

Only good quality products should be allowed into the country and not this Chinese substandard. However, Sri Lankan companies are also unable to produce products of high quality so that a goods import is necessary.

BSP Sunday, 24 June 2018 03:39 PM

You realised it only today?

Logan Sunday, 24 June 2018 04:37 PM

Already when we turn on the our light, money goes to China, when we travel in a highway, money goes to China. Soon it China will be collecting our money for every single move we make.

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Local industries being neglected by import oriented govt.: Dinesh

Comments - 7

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