Investment Promotions and International Trade Minister Bandula Gunawardena said a proper mechanism has been prepared setting several goals to strengthen the rupee value.He was addressing media yesterday at the Prime Minister’s Office in Colombo.The rupee value under this plan will be to strengthen the Rupee to around Rs.160 against the US Dollar within the first year after presenting the first budget of Finance Minister Mahinda Rajapaksa.It has been planned to bring down the rate further to Rs 140 during the second year.It has been planned to implement a national programme to establish investment promotions and export promotion industries.A tax concession package will be introduced aiming to increase investments.Under this move, 5,000 export processing and export service villages will be established.
Three new free trade zones, which produce readymade garments, will be established centralising the Katunayake, Maharagama and Meegoda areas under the tax concessions provided by the Board of Investment (BOI).Those investments will receive a five year tax relief period.
He added that the biggest ever package of tax concessions will be implemented by this government.He added that a significant amount of monies earned through exports by Sri Lankans are in foreign countries.Only a part of the export revenue earned by entrepreneurs including exporters is sent to Sri Lanka.As a result of various tax acts, the rest of the monies are kept in foreign countries.With the “Investment promotion tax fee package” it has been estimated that the country will receive around US$ 10 billion in two years.
