Sri Lanka Stimulates Textile And Clothing Industry
At the end of June, the 2010 budget was formally promulgated by Parliament. The budget focuses mainly on phasing out the deficit. Its main measures are to reduce recurrent financial expenditure and control government investment behavior within 6-7% of GDP. At the same time, we will build a new tax system with wide tax base, low tax rate and simple tax system, and optimize the use of state-owned assets.
At the same time, the budget proposes to implement new industrial stimulus policies for textile and clothing manufacturing industry to maintain the competitiveness of the industry. The budget will include agriculture, IT outsourcing and petroleum exploration services, jewelry industry, furniture, ceramics and tourism as leading industries, and become a bright spot for fiscal revenue growth.
In addition, the budget will introduce tariff free treatment for raw materials and intermediate products, and high tariffs will be imposed on imported homogeneous goods to protect domestic industries.
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