Sri Lankan Migrant Workers to Receive Rs.2 for Every Dollar Remitted - Sri Lanka Budget 2021

Admin | 17 Nov, 2020 11:16PM | Leave a comment
The Prime Minister and Minister of Finance Mahinda Rajapaksa presented the Sri Lanka Budget for the Year 2021 to Parliament today.

“We have entered an era in which Sri Lanka’s geopolitical importance is highly valued and we need to utilize it while sustaining sovereignty. We need a strategic vision for that” said the Prime Minister.

The estimated Government Revenue for 2021 is Rs. 1,961 billion. The total Government expenditure is Rs. 3,525 billion and as such the difference between the revenue and the expenditure is Rs. 1,564 billion. The government is Expecting to maintain a 6% growth rate, Inflation at around 5%, budget deficit to be reduced for 4%.

Summary of Sri Lanka Budget 2021

  • Sri Lankan migrant workers to receive Rs. 2 for every dollar remitted, in order to increase annual foreign remittances.

  • Contributory pension for Sri Lankan migrant workers.

  • Employees’ Provident Fund Act to be amended to expand the retirement age for both men and women up to 60 years.

  • Two years leave to be given to state employees who want to seek overseas employment.

  • Rs. 3000 million allocated in solution of a human-elephant conflict.

  • Construction of 50,000 houses already underway under the Urban Development Authority provided a 25 year loan with an interest rate of 6.25% granted for applicants of these state housing projects.

  • Bilateral agreements to be reviewed, to ensure national security and SL non-aligned stance.

  • Import duty on vehicle spare parts to be reduced, Spare parts imports restrictions to be relaxed

  • Permission for non-executive government officials to engage in additional occupations after official hours of duty granted.

  • Production of disposable polythene and plastic will be banned with effect from the 1st of January 2021.

  • Rs 20,000 million to develop the infrastructural facilities to expedite the process of resolving pending cases in courts.

  • A 10 year tax relief on recycling sites for its investors.

  • Electricity consumers assured a sustainable and renewable energy supply by 2023 with 70% of Sri Lanka’s energy supply being sourced from renewable energy sources.

  • The Kerawalapitiya – Mirigama, Kurunegala – Dambulla and Pothuhera – Kandy segments of the Central Expressway to be completed by 2024.

  • Ruwanpura Expressway to connect the Southern Expressway by the Ingiriya – Kahathuduwa segment.

  • Manufacturing Train compartments will be developed as a local industry.

  • Railway network including Colombo and Kelani Valley to be expanded with a Rs. 1300mn investment.

  • Construction of the national expressway to be expedited. Colombo’s Marine Drive to be extended to Moratuwa.

  • In addition to the Lakvijaya Power Plant, a 300 MW Coal Power Plant and two 600 MW Natural Gas Power Plant to be constructed soon.

  • Repayment of refinancing loan facilities provided by CBSL to Tourism sector extended till 30 September 2021.

  • The daily wage of plantation workers to Rs. 1,000 from January 2021.

  • The government aims to create a sports economy worth USD 1,000 million during the period from 2021-2024.

  • Rs. 250 million for the development of underprivileged temples.

  • Technical colleges of which the annual intake is presently at 100,000 to be increased to 200,000 students per year.

  • A 5 year tax relief for privet educational institutions.

  • A new loan scheme proposed for Samurdhi beneficiaries on 7% interest.

  • Rs 18,000 million additional provisions to combat Covid-19

  • A 50% income tax exemption to local companies if they register before 31 December 2021 to be listed in the Stock Market.

  • Five technological parks across the country to be established.

  • Additional funds of Rs. 3,000 million to initiate a scholarship programme to provide a Rs. 4,000 monthly allowance to students receiving vocational education based on their active participation.

  • Foreign loans 1,400 million USD to be obtained for the next five years from the Japan International Cooperation Agency, World Bank and Asian Development Bank.

  • Television sets to be provided for rural schools to allow students to watch Guru Gedara educational programmes. Rs 3,000 million allocated.

  • A new insurance scheme will be introduced for the employees of Covid affected sectors.

  • Rs 750 million to be allocated for housing, health, education and entrepreneurship needs of retired, injured or deceased military servants.

  • Tax on dividends of foreign companies will be excempted for three years, if the money is invested in Sri Lankan sovereign bonds or in the stock market.

  • New laws to be introduced in relation to data security, cyber security and intellectual property.

  • A special Court of Appeal to hear public complaints pertaining to tax.

  • Rs 8 billion to be allocated for the expansion of the technology sector.

  • Special programmes will be conducted to strengthen public security at a cost of Rs 2,500 million

  • Non-residents will be allowed to purchase super-luxury condominiums using foreign currency.

  • Value Added Taxes unchanged at 8% for businesses that record a turnover of more than 25 million a month except for bank,finance and insurance companies.

  • New laws against auditors and companies that prepare false tax records.

  • Simple Online Income tax system to be introduced for income tax payers.

  • Business organizations engaged in agriculture, fisheries, and livestock farming industries will be exempted from taxes during the next 5 years.

  • Special Goods and Services Tax to be introduced for telecommunication,alcohol, cigarettes, vehicles and betting.