Connect with us

Business

EDB proposes tax cut on incremental export increases to encourage exporters

Published

on

Some form of a tax relief on incremental exports is the least that could be granted by the government from the upcoming budget given its fiscal constraints to incentivise exporters who continuously strive to add more capacity and bring foreign exchange at this critical juncture, according to the Export Development Board (EDB) .

Speaking at a pre-budget forum held recently, EDB Chairman Suresh de Mel said this proposal had been there on the cards for some time and would prove very useful if it could be implementedin earnest.

“There are some things we can do that is not going to cost that much. One of them is to give some sort of a tax relief on incremental exports,” de Mel told a webinar organized by the Institute of Chartered Professional Managers of Sri Lanka.

At present, export incomes are taxed at 14 percent compared to 24 percent charged elsewhere for corporate income tax purposes. Although not linked to taxes, a year ago, the EDB proposed an Export Development Reward Scheme with the intention of encouraging export volumes by way of paying an additional 2% and 3.5% on their incremental export earnings for large and small and medium sized exporters respectively.

After a brief setback suffered in April and May this year due to the virus resurgence, Sri Lanka’s exports earnings have continued to exceed a billion dollars in the three consecutive months through August.

EDB chief said the export earnings are on course to achieve the year-end target.

Speaking further de Mel said the current suspension of fresh recruitments into the State sector due to fiscal challenges could not have come at a better time when the private sector is grappling with a persistent labour shortage, which has forced companies to operate below capacity.

“The private sector has a big labour shortage and I think this will give the private sector some labour that would otherwise be working for the government. So, I think again this is not a cost but a saving, and might give the export sector the workforce for their expansion and exports increases”, de Mel added.

Speaking on the way forward for exports, he emphasised on the need for developing exportable quality products via continuous value addition and tapping niche markets for durable success as Sri Lanka is not a major manufacturing powerhouse.

In this backdrop, he called for budgetary support for the expansion of EDB’s ongoing Export Production Villages programme, establishment of Export Houses, which functions as intermediaries in the exports supply chain, and in marketing and promotional endeavours including the emerging social commerce, which has gained more traction as a result of the pandemic.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

First multi-stakeholder initiative on Child Rights in Tourism launched in Sri Lanka

Published

on

Pictured from left: Buddhini Withana, Senior Technical Advisor Child Protection and Child Rights in Business, Save the Children; Irstel Janssen, Director, Sustainable Sri Lanka; Mayuran, Director, Centre for Children’s Happiness during a panel discussion at the Seal launch event.

On World Tourism Day, representatives from leading hotel businesses, tourism associations, NGOs, and government departments convened in Colombo to officially launch the Mother and Child-Friendly Seal for Responsible Business in Tourism. This pioneering initiative, the first of its kind in Sri Lanka, brings together key actors from the tourism supply chain to enhance the well-being of children and families connected to the sector through long-term, continuous actions.

The launch comes on the heels of a new study by The Centre for Child Rights and Business in partnership with Save the Children, highlighting serious child rights risks in Sri Lanka’s tourism industry. The study identifies key challenges such as sexual exploitation, child labour, and educational disruptions, driven by factors like inadequate regulation of guesthouses and homestays, the absence of child safeguarding measures among tourism providers, and a lack of formalised pathways to decent work for youth.

This event marks a significant milestone in the expansion of the Mother and Child-Friendly Seal, which has already seen success in Sri Lanka’s tea sector, with seven major plantation companies and exporters committing to initiatives that improve the welfare of tea communities. The extension of this Seal to the tourism sector is timely, as Sri Lanka prepares to welcome over 3 million tourists by 2025, positioning the industry to align with global human rights due diligence regulations and the growing demand for ethical tourism.

At the launch, stakeholders engaged in practical discussions about the child rights risks facing the tourism sector and explored collective solutions. Issues such as the outmigration of mothers and its impact on children were brought up, with participants offering valuable insights into areas for Seal members to address.

The panel discussed the critical issues that women and children face in the travel and tourism industries and some of the priorities and opportunities that the industry could address.

“Young children often do not realise they are being exploited. Providing a safe and respectful environment for them should be our primary goal. We must consider the risk factors in these scenarios, as there is currently no data to support issues in tourism, such as trafficking and exploitation. While problems like festival tourism have existed, they have increased since COVID-19 and have been exacerbated by the economic crisis,” said Buddhini Withana, Senior Technical Advisor Child Protection and Child Rights in Business, Save the Children.

Irstel Janssen, Director, Sustainable Sri Lanka added: “10% of women are working in this sector due to social stigma, safety concerns, and harassment. The economic crisis has forced women to step into this industry, but they are not employed in roles that match the nature of the work. The Seal initiative is an important step to address these issues and encourage more women’s participation.”

One of the highlights of the event was a keynote speech delivered by Cinnamon Hotels, where they underscored their commitment to protecting women and children. The company outlined key initiatives, including robust policies to support the female workforce, a zero-tolerance stance on misconduct, and a comprehensive sexual harassment policy. Cinnamon Hotels also conducts awareness sessions to educate staff about these policies, provides parental leave, and offers 100 days of paternity leave. Additionally, the company places a strong emphasis on mental health benefits for all employees. Their efforts served as an inspiration for other accommodation providers, offering practical steps to strengthen child safeguarding and empower women in the tourism sector.

For more information about the Mother and Child-Friendly Seal for Responsible Business, visit srilanka-motherandchildseal.org or contact info.SL@childrights-business.org.

Continue Reading

Business

‘Brandix – A Great Place to Work for Women’ 

Published

on

Sri Lanka’s premier apparel solutions provider, Brandix, was recognized as one of Sri Lanka’s Most Outstanding Women-Friendly Workplaces at the Satyn Magazine Women Friendly Workplace Awards (WFWA) 2024. Initiated by CIMA Asia, the American Institute of Certified Public Accountants (AICPA) and Satyn Magazine, the accolade recognizes and celebrates organizations committed to gender equality and women empowerment. Senior General Manager Human Resources at Brandix, Dinusha Jayamanne, said Brandix is ‘constantly exploring new avenues to create a more inclusive and enriching environment for its female workforce, and the company stands proud of the pioneering initiatives it launched in this sphere.’ The latest award is a testament to the impact of these measures implemented across Brandix facilities in Sri Lanka and the world.

Continue Reading

Business

“Helmet – If you love” ~ UN/ FIA Road Safety Programme

Published

on

Automobile Association of Ceylon conducts Road Safety programmes annually with the funding of FIA under UN Decade of Action 2021/2023 in Sri Lanka. This year’s campaign is ‘Helmet – If you love’; to educate public on the importance of children wearing helmets when travelling as pillion rider on motorcycles.

The aim of the programme is to educate children, parents, teachers, motorcyclists, etc. on the importance of children wearing helmets, not to simply abide by law, but to keep the safety factor in mind.

In line with World Children’s Day celebrations, Automobile Association of Ceylon (AA) together with Optimum Q Event Management Pvt Ltd. Is conducting awareness programmes at schools (drop off points), where parents drop their kids to school in Motorcycles.

It is being carried out together with teachers, police officers and school children, who deliver the message to parents and educate them on the importance of their children wearing helmets.

Parents who arrived with their children wearing helmets were rewarded with supermarket vouchers and encouraged their efforts towards safeguarding their kids.

Whereas parents who arrived without helmets for their children were educated by other children, who handed them balloons and explained to them that their child’s heads is as fragile as the balloon, in the face of a road accident. All parents understood the gravity of the situation, especially when pointed out the facts by other children in school.

Furthermore, some children were randomly picked and awarded with helmets at the school assembly/ interactive education session conducted by Devapriya Hettiarachchi, Secretary,AA Ceylon and S I Kariyawasam, Sri Lanka Police Headquarters. Teachers, children and parents were made aware of the acceptable safety characteristics of a helmet with the SLS standard and how to wear them properly.

All children, teachers and Principals seemed enthusiastic about the programme, as it is part of a subject that is taught to children at school. The children who took part in educating the parents at the drop off point were also awarded with gift vouchers for their efforts to spread the message to their fellow students’ parents.

The event was concluded with a Thank you speech by one of the school’s prefects.(AAC)

Continue Reading

Trending