Tag: Budget2021

Sri Lanka’s gross financing requirements top $20 billion next year – EMFI Securities
Economy, Finance and Leasing, FIscal Policy

Sri Lanka’s gross financing requirements top $20 billion next year – EMFI Securities

Sri Lanka's gross financing needs are projected to top $20 billion next year, a 22.3 percent increase compared to this year, according to EMFI Securities. London-based Financial Provider in a recent report said that the government may have underestimated current expenditures (mostly salaries and wages) and overestimating revenues. Therefore, it projected that the country's gross financing requirement to increase to 22.3% of GDP in 2021 (or USD 20.9 bn), by two percentage points of GDP higher than in 2020. Further, it highlighted that Sri Lanka's external debt service payments amount to a 'very compromising' $ 4.2 bn in 2021, which represents 71% of its international reserves.
Sri Lanka’s banks to show reluctance to absorb their subsidiary Finance Firms – Fitch Ratings
Banking and Insurance, Business, Economy, Finance and Leasing, International Business

Sri Lanka’s banks to show reluctance to absorb their subsidiary Finance Firms – Fitch Ratings

Sri Lanka's banks would be reluctant to absorb their financeĀ and leasing companies (FLC) due to the significant difference between their risk profiles and underwriting practices which could lead to elevated challenges in achieving effective management, According to Fitch Ratings. The government's budget speech, presented on 17 November 2020, reiterated the importance of consolidation in the FLC sector, which has been on the cards since 2014 when the Central Bank (CB) announced its 'Master Plan for the Consolidation of the Financial Sector'. It led to several banks acquiring FLC subsidiaries in 2014 and 2015, including the acquisition of HNB Finance (then Prime Grameen Micro Finance Limited) by Hatton National Bank and Serendib Finance (then Indra Finance Limited) by Commercial Bank of ...
Sri Lanka announces tax concessions for new listings at CSE
Business, Economy, Equity Market, Taxation

Sri Lanka announces tax concessions for new listings at CSE

The government announced a proposal to grant 50 percent income tax relief for new listings at Colombo Stock Exchange (CSE). Delivering 2021 Budget speech Prime Minister & Finance Minister Mahinda Rajapaksa announced these plans which are aimed at boosting performances of CSE. In addition, these firms are to be only subjected to a 14% income tax rate for the next 3 years from 2021, as per the proposal.
Sri Lanka announces Special Goods and Services Tax
Business, Economy, Finance and Leasing, Taxation

Sri Lanka announces Special Goods and Services Tax

The government announced a Special Goods and Services Tax (GST) to be introduced for telecommunication, alcohol, cigarettes, vehicles, and betting from 2021 onwards while maintaining most of the other taxes and duties at the current rate. Delivering 2021 Budget speechPrime Minister & Finance Minister Mahinda Rajapaksa announced plans to cut the budget deficit ratio to 4 percent in the medium term from the projected 9 percent this year. WIth a mepahis on tax complinace side, the goverment plans to introduce new laws against auditors and companies that prepare false tax records. Further, a simplified Online Income tax system is also on the cards for income tax payers.