LIVE UPDATE: Budget Speech 2023

 

Budget 2023 Full Speech (English) by Adaderana Online on Scribd

 

 

Concluding his budget speech, the President said:

“I request all of you to join and support the journey of bringing positive change in the country through these budget proposals. We are taking these suggestions as background, let’s prepare a new economic base. Let’s come to a common consensus and create a national economic policy framework. Let’s implement that policy framework for the next 25 years.” 

“Every 5 years we can review our progress. Through such a review, we get the opportunity to further develop the policies that can make our journey towards our goal successful.” 

“I have now provided this parliament with the necessary background to contribute to this journey. On one side, parliamentary sectoral committees. On the other hand, the National Assembly represents the Parliament. In addition, we have proposed several committees on public finance and financial services. As I recently drew the attention of the Speaker, the Parliament has not fully formed these committees yet.”

“The sectoral committees can play a big role when the budget proposals that I have presented are implemented through government officials. The finance committees can effectively intervene in the exercise of reducing public expenditure.”

“Therefore, I request this parliament to implement all those committees as soon as possible. Then we can create the space to initiate a new journey with a new guise. Let’s make the best use of that space and join together to create a better future for our true national resource, our youth.”

“Accordingly, I request all of you to actively and proactively contribute to the effort of re-raising the country through a new economic foundation.”

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- President proposed to set up a Presidential Task Force to carry out monitoring functions to expedite implementation of all budget proposals.

- “I believe that a considerable relief can be given to the public servants and pensioners at the latter part of year 2023,” says President.

- President said a new Value Added Tax (VAT) Act will be introduced consolidating the amendments introduced from 2022 – 2022.

- He said a surcharge tax will be charged at the point of import of diesel, petrol and crude oil 

- President said the current rates of Customs Import Duty will be revised from 0%, 10% 15% to 0%, 15% and 20% to accommodate the proposed phasing out of para-tariff /  levies effective from January 01, 2023. 

- He proposed to introduce a new Financial Asset Management Companies Act to
enable banks and finance companies to separate and transfer their nonperforming bad assets to an asset arrangement company.

- President proposed to establish a Microfinance and Credit Regulatory Authority (MCRA) to ensure the protection of customers of microfinance and money lending businesses, while necessitating the reporting requirement to Credit Information Bureau of Sri Lanka (CRIB) by the regulated institutions.

- Wickremesinghe said that amidst the current economic crisis, an increase in acute malnutrition among children under 5 years of age is observed. 

Hence, he proposed a sum of Rs. 500 million be provided to further strengthen the existing nutrition supplemental programmes in order to reduce health problems arising as a consequence thereof.

- President proposed to establish 10 Agro-Entrepreneur villages in order to encourage export-oriented products with the use of modem technology and proposed to allocate Rs. 250 million for this purpose.

- President proposed to allocate Rs.150 million from the budget of the next year to develop required knowledge, technology and various infrastructure facilities to reduce Post-harvest losses. He also proposed to set up an export committee to obtain proposals, to present crop damages by animals.

In order to improve the local milk production, he proposed to develop the Kundasale Artificial Insemination Center and adopt new technologies. For this purpose, he proposed to provide Rs. 100 million in 2023 and encouraged the private sector to enhance their capacities to help this endeavor.

- President said he is planning to establish an International University for climate change for the purpose of furthering knowledge, sharing experience, education, training building capacities, development of programs in the areas of climate change mitigation. For initial expenses for this purpose, the President said he set apart Rs. 100 million.

- President suggested commencing a joint venture project at a suitable location in the Puttalam - Mannar coastal region to carry out research and development activities for the production of green hydrogen on a commercial basis, on a scheme of public private partnership.

- He said work related to the plan to restore 50,000 acres of degraded forest areas by 2027 should be expedited and in addition to that, appropriate programs should be implemented in public places, and water catchment areas to increase the cover even outside the forests. He proposes to allocate Rs. 50 million for this purpose.

- He also proposed to establish a laboratory under the Excise Department to carry out tests relating to alcohol products and proposed to allocate Rs. 100 million for setting up the laboratory.

- President said the possibilities of producing cannabis purely for the purpose of exports will be examined for which an expert committee will also be set up.

- President said that the CESS Levy will be eliminated on phased basis in 03 years from January 01, 2023 and that the Ports and Airports Development Levy will be phased out in 05 years. 

- SriLankan Airlines, Sri Lanka Telecom (SLT), Sri Lanka Insurance Corporation, Hilton and Waters Edge will be restructured, says the President. 

- The economic reforms we bring will not be confined to the reforms agreed with the IMF. The economic reforms proposed by the IMF are primarily for economic stabilization – President

- He said steps are being taken to create an internationally competitive skilled workforce within the next ten years.

- Plans to achieve foreign direct investment targets of USD 3 billion annually over next 10 years – President Ranil 

- Annual addition of USD 3 billion is expected from new exports from 2023-2032.

- Measures to increase international trade above 100% as a proportion of the gross domestic product – President 

- It is expected to achieve a high economic growth rate of 7%-8% through the social market economy based on reforms and modernization.

- President says the necessary legislative amendments and new bills for economic transformation will be presented to Parliament soon.

- President says socio-economic transformation should be done taking into account global phenomena, paying special attention to climate change.

- President Wickremesinghe also proposed to re-implement the Paying Wards System in government hospitals. As the first phase, this system will be established in national and base hospitals, he said.

- President proposes to upgrade Badulla, Kurunegala and Polonnaruwa hospital as teaching hospitals.

- He proposed to allocate Rs 100 million to improve the existing sanitary facilities for prisoners up to the required level.

- Safety Seal (Sticker) to be introduced for drinking water bottles.

- President proposed to allocate Rs. 50 million in 2023 to the National Youth Services Council to train youth for foreign employment opportunities.

- Recognizing the importance of encouraging Young Women Entrepreneurs, who are engaged in informal household businesses, a loan scheme will be introduced.

Under this scheme, a young women entrepreneur can obtain a loan up to a maximum of Rs. 250,000 empowering at least 1,000 young women entrepreneurs at its initial stage. 

This scheme is expected to be implemented through the Regional Development Bank (RDB) covering all the districts and for that, as a start-up fund, Rs. 250 million will be allocated for 2023.

- He said agriculture should also be modernized to suit the present-day and hence, he propose to select 240 youth who are currently unemployed representing each district of the 32 island and to empower them as Agricultural Entrepreneurs. For this purpose, Rs. 120 million will be allocated, he said.

- The President said that actions will be taken to provide solar panels to religious places with the assistance from foreign sources and the government.

- He said necessary incentives will be provided to promote the use of electric cars locally as well as assembling them.

Accordingly, Social Security Contribution Levy will be waived only for organizations that assemble motor vehicles and add at least 25% local value and produce the required parts locally.

- A tax of Rs. 02 per stick imposed on ‘Beedi’.

- President said an insurance cover will be given to private sector employees.

- In order to promote the production of electricity using renewable energy and to encourage the local production of related solar panels, solar panels used to produce solar energy under the combined classification code 8541.10 and inverters under the combined classification code 8504.40 are currently under taxation on imports.

He proposed to remove Port and Airport Development Levy and Social Security Levy effective 01.01.2023.

- He proposed to allocate Rs. 2,000 million in the year 2023 to rehabilitate the roads damaged by floods in order to reduce the sufferings undergone by the people.

He said actions will also be taken to repair Garagoda Bridge across the Kenai River and complete the remaining work of the Raja Mawatha in Badulla 

- The President proposes to establish a Road Maintenance Fund by charging an annual fee not less than Rs. 100 per vehicle when obtaining revenue licenses. 

The fund is expected to provide for all types of road maintenance annually. To set up the fund, he proposes to allocate Rs. 100 million in 2023 budget.

- Passport and Visa charges will be increased by 20%

- New economic zones will be established in Western, North Western provinces and in Hambantota and Trincomalee districts to attract foreign investment. 

- Special focus on a new economic program - environment-friendly green and blue economy and digital economy.

- Encouragement of private entrepreneurship. A new policy-based conducive environment will be prepared to make their efforts more productive, says the President. 

- We aim to reduce public sector debt from around 110 percent of GDP as at end 2021, to no more than 100 percent of GDP in the medium term - President 

- He stated that the fiscal stabilization programme envisages government revenue increasing to around 15 percent of GDP by 2025 from the 8.3 percent of GDP as at end 2021. The movement is targeting a primary surplus more than 2 percent of GDP in 2025 and expects to improve upon this level thereafter, he said.

- The President proposes the establishment of a Commission on Taxation to study and submit proposals on increasing the government’s revenue. “We are looking at the appointment of a revenue authority and this commission will report on it.”

- President also assured continuous focus on caring for the poor and vulnerable groups.

- A new economic foundation should be prepared to match the new trends of the world - President

- Instead of a lifestyle tailored to per capita income, an economy tailored to the lifestyles of the youth - President

- President assures the commencement of a new journey ensuring the lifestyles that the society is familiar with will not fall to a lower level again.

- To ensure a better future for the youth of Sri Lanka, let’s create a new economy tailored to meet their expectations through a new approach that goes beyond traditional protests, struggles, and strikes - President

- The President also emphasized that the economic reforms they will bring will not be limited to the reforms agreed with the IMF and that the reforms proposed by the IMF are only limited to stabilizing the economy. 

- However, these budget proposals are different from the traditional budget proposals, he said. He said that most of the time we are used to reducing the prices of goods, increasing wages and providing relief through the budget.  

“Every government has done this. We got the path wrong due to taking those populist decisions,” he said. “We can no longer go on wrong paths and get lost.”

- Presenting the 2023 Budget, the President said that the long-term development of the country (2023 - 2048) is based on the correct decisions and not populer decisions. 

- The President said that the process of building a new economy in line with the new world of the 21st century will begin with the 2023 budget proposals. 

- Due to the measures taken over the recent past, we have been able to reduce inflation to a certain extent, the President said. 

- The President said that they are hopeful that these talks will be successful.

- He said that discussions with the International Monetary Fund (IMF) are currently ongoing and that ideas are being exchanged with India, China and other countries regarding debt restructuring. 

- He said that the country has passed the era where people had to stand in queues for days and occupy various places and protest and we have neared an era where the hardships faced by the masses have eased to a certain extent.

- Commencing his 2023 Budget Speech, the President said that a light has fallen on the path to getting out of the economic abyss due to the tiresome and difficult actions taken by the government over the past couple of months.

- President Ranil Wickremesinghe, in his capacity as the Minister of Finance, Economic Stabilization and National Policies, commenced delivering the opening speech of the second reading of the Appropriation Bill to Parliament today (14).