Ceylon Chamber optimistic that tax cuts will stimulate growth

The Ceylon Chamber of Commerce (CCC), the country’s premier representative of the private sector, yesterday said it is optimistic that the revisions of taxes and levies announced by the new government would stimulate the economy. 

“The slew of tax proposals put forward as part of the stimulus package will revive economic growth and activity in the short term. 

Our expectation is that the recent statements by the government in curtailing non-priority public spending and the constrained approach to ministerial portfolios signal the seriousness of the efforts by the government to manage the fiscal deficits,” a CCC statement said. 

The chamber also welcomed the focus on improving the profitability of the state-owned enterprises (SOEs) commencing with the establishment of a committee to select competent leadership for these state institutions. 

“The application of best practice management and financial discipline to SoEs was a key recommendation within the Ceylon Chamber’s Sri Lanka Economic Acceleration Framework (SLEAF) 2020-25. 

The chamber hopes that the positive benefits accrued from the near-term fiscal stimulus will be sustained over the medium and long term. This will require the government’s focus on continuing progressive reforms on several key agendas including but not limited to those related to local and foreign investment, the expansion of exports and productivity enhancements in the public sector,” the statement added.  As espoused in its SLEAF, the chamber also looks forward to an environment of policy consistency and evidence-based decision-making, which will provide a foundation for sustainable growth acceleration. 

The CCC said it is looking forward to ongoing engagement with the government with respect to maximising the translation of economic stimulus measures into accelerated growth and inclusive benefits to all segments of citizens and businesses.