Budget 2021 Highlights

CEYLON TODAY | Published: 2:00 AM Nov 18 2020
News Budget 2021 Highlights

Health  

Rs 5,000 M for rural hospitals development

Rs 18,000 M to combat COVID-19

Rs 1,500 M to increase Thriposha production

New insurance scheme for employees who worked on COVID-19 affected sectors

Environment, Forest and Wildlife Conservation  

Rs 3,000 M for solution to Human-Elephant Conflict

Disposable polythene and plastic production banned from 1 Jan 

Tax 

Import levies/duties reduced on motor vehicle industry and spare parts 

10-Year tax relief on investors in recycling sites 

50% Income Tax concession to local companies for Stock Mkt listing registration before 31 Dec 2021

A special Court of Appeal to hear tax- related public complaints 

8% VAT to continue for businesses with monthly income more than Rs 25 M except financial institutions  

Special goods and services tax for telecommunications, alcohol, cigarettes, motor vehicles and betting/gaming 

5 years of tax exemption for businesses started by graduates: entitled to Rs 500,000 loan at 4% interest  

Personal income tax on earnings over Rs 250,000 per month

Withholding tax on rent, interest and dividends, and PAYE abolished  

Housing 

25-year loan with 6.25% interest rate for applicants of State housing projects 

Non-residents allowed to purchase super-luxury condominiums using foreign currency

National  

Bilateral agreements to be reviewed to ensure nat security and non-aligned foreign policy 

Law and Order 

Rs 20,000 M to be allocated to develop infrastructure facilities to expedite pending Court cases 

Strong legal system for archaeological heritage mgt

Air Force surveillance to be increased 

Navy to be given priority in drug control 

Rs 2,500 M for special public security programmes 

Power and Energy 

70% of energy supply from renewable energy sources by 2023 

300 MW Coal Power Plant and two 600 MW Natural Gas Power Plant to be constructed 

10,000 addl. transformers for solar power generation for low income families 

Transport 

National expressway construction to be expedited

Marine Drive to be extended to Moratuwa 

Rs 1,300 M for expansion of railway network including C’mbo and Kelani Valley 

Kerawalapitiya-Mirigama, Kurunegala-Dambulla and Pothuhera-Kandy segments of Central Expressway to be completed by 2024

Ruwanpura Expressway to connect the Southern Expressway via the Ingiriya-Kahathuduwa segment

Estate and Plantation 

Estate plantation worker daily wage to be increased up to Rs 1,000 from Jan 

Sports 

Sports city in Sooriyawewa with new techno facilities for int’l cricket

Sports complexes to be built for 2032 Olympics

10 sports schools to be developed

Create a sports economy worth USD 1,000 M during 2021-2024

Religion 

Rs 250 M to develop rural underprivileged temples infrastructure 

Military 

Rs 20,000 M for Tri-Forces to develop infrastructure

Rs 750 M for housing, health, edu and entrepreneurship needs of retired, injured military servants 

Economy and Finance 

To achieve 6% econ growth 

Limit on borrowings set at Rs 2,900 B

USD 1,400 M foreign loans to be obtained for next 5 years from the JICA, WB and ADB

USD 400 M to be obtained from bilateral sources 

CBSL’s Non-Banking Sector Monitoring Dept to be restructured  

Cost of acquisition of finance companies allowed as deduction of income tax 

Trade and Investment 

New investment zone for local and foreign investors

Commodity trading hub to be implemented at C’mbo and H’tota Ports 

Spare parts imports restrictions to be relaxed

Companies Act to be amended in Jan 

Agriculture 

Govt fertilizer importation institutions to be consolidated 

Business orgs in agri, fisheries and livestock farming industries exempt from taxes during next 5 years

Technology 

5 Islandwide tech parks to be established 

Rs 8 B for tech sector expansion 

Poverty Alleviation 

Samurdhi Life Savings Accounts for Samurdhi beneficiaries

A new loan scheme for Samurdhi beneficiaries on 7% interest.


CEYLON TODAY | Published: 2:00 AM Nov 18 2020

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