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| Sri Lanka Budget 2016 |
Minister of Finance Ravi Karunanayake delivers budget proposals for 2016
Minister of Finance Ravi Karunanayake presented the National Budget 2016 to parliament today.- Tax system will be simplified to increase tax revenue to 18% of GDP by 2018.
- Several taxes including shares transaction tax, tourism tax and luxury and semi luxury vehicle tax to be removed.
- Sri Lanka would be made asbestos free by 2018. Roofing tile companies to be granted a 50% tax incentive for three years to encourage production of environmentally friendly material.
- Tobacco companies and casinos revenue taxes to be increased by 25%.
- English and Tamil tele-dramas, movies and advertisements to be exempted from taxation.
- New pension scheme to be introduced for state sector pensioners with effect from 2016.
- Special Commodity Levy on potatoes and big onions will be reduced by Rs 25.
- Domestic cylinder of LP gas (12.5kg) to be reduced by Rs 150 and kerosene to be reduced by Rs 10 per liter.
- Prices of 11 essential commodities will be reduced, Rs. 3 billion will be allocated for concessions.
- Potato 1 kg Rs. 75 - 85
- Big Onions 1 kg - Rs. 85 - 95
- Locally Produced Milk 400g - Rs. 295
- Infant Milk 1 kg - reduced by Rs. 100
- 425 g Canned Fish -reduced by Rs. 125
- Sprats 1 kg - Rs. 410 (MRP)
- Dhal 1 kg - Rs. 169 (MRP)
- Dry Fish 1 kg - Rs. 1100 (MRP)
- Chickpeas 1 kg- Rs. 169 (MRP)
- Sri Lankan Airlines operations will be streamlined to enhance efficiency.
- Three new domestic airports will be established at Digana, Badulla and Puttlam through a PPP arrangement.
- Exempt airlines using domestic airports from ground handling charges.
- Special Committees to be set up to manage Katunayake and Southern expressways - private sector encouraged to join.
- Mattala Airport to be converted into a transfer terminal for Air cargo.
- Rs. 1.5 billion allocated to develop Kelan Valley railway line.
- Sri Lankan harbors to reach the top 20 hours in the world by 2025
- Rs. 3 billion for Anuradhapura, Jaffna and Kurunegala hospital development and Rs. 2 billion to construct a special hospital for kidney diseases in Minneriya.
- Rs. 6.5 billion to be allocated to establish a kidney dialysis center
- Rs. 3 billion allocated to established Malabe Mahapola University to be established - courses offered include Business Administration, English and Management
- Interest free loans to be offered to university students to purchase laptops - Rs. 300 million to be allocated.
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