Category: Industry
Rough Ride
Business is booming but the hotels sector is trying to hang on to the good times a little longer, by warding off a looming electricity price hike. The sector is trying to sidestep a proposed change to the electricity tariff structure that would see their energy costs shoot up by half. rn rnThe proposed change […]
Hold On
Political power play has put in the balance plans by HSBC to set up a huge call center in the country.The banking giant was planning to set up a call center and a back office operation in the country and was seeking government cooperation for minor adjustments to the Labor Laws to facilitate the investments.rn […]
Cease Lease
Attempts through the budget to force leasing companies to pay tax could make leasing unattractive and uncompetitive according to the industry.Government in its budget 2004 announced that leased assets would be taxed at their market value when being transferred to the lessee or the party obtaining the lease.rn rnLeasing industry says taxing transfers will result […]
No Sacred Cow
The UNF administration looks set go ahead with the tax on share trading profits, with the same determination, it is implementing unpopular reforms against less privileged classes in the country.Pampered equity investors who have been protected from taxation for more than two decades howled in protest at the 15 percent tax proposed by Finance K […]
Slithering Down
Sri Lanka Telecom reported a 26 percent dip in net profits for the first nine months, due to an early retirement scheme, higher operating costs and losses from its cellular subsidiary.The monopoly telecom giant said Friday that net profits fell to Rs.1.788 bn from Rs. 2.425 bn reported during the corresponding period 2002.rn rnRevenues during […]
Soaring Eagle
Eagle Insurance says its net profits have soared 55 percent for the first nine months of this year, despite stiff competition in the local arena.Group net profits for the period under review touched Rs. 145 mn, as against Rs. 94 mn reported during the same period 2002.rn rnThe bulls come back to the bourse, prudent […]
Travel Charger
Collection problems could bog down state plans to charge a Rs. 300 annual levy on mobile handsets as planned from next January, which works out to less than 85 cents a day.The new charge, meant to compensate the government for Value Added Tax (VAT) revenue lost due to smuggled cellular handsets entering the market, will […]
Bonus Stocking
All pensioners are in for a New Year bonus, with a ten percent hike in pensions from January 1 2004, the Government announced in its budget on Wednesday.rn ldblquote This is the largest increase granted to pensioners during the past ten years. This increase will cost the Government Rs.2.5 bn dblquote , Finance Minister Choksy […]
Naughty Naughty
The telecom watchdog won the first round against Mobitel on Wednesday, when the Court Appeal rejected a stay order put forward by the cellular operator.Mobitel Lanka Ltd sought legal recourse, after the Telecommunications Regulatory Commission (TRC) asked the cellular operator to withdraw its promotional GSM offer last Friday.rn rnThe cellular operator started trial runs for […]
Can or Cant?
Central Bank cut its 2004 GDP growth forecast to six percent from an earlier 6.5 per cent after factoring in current uncertainties in the peace process and the political front.Projections for 2004 however, still remain above the 2003 economic growth target of 5.5 per cent.rn rnThe Central Bank said if the political spat found a […]
Free Flow
The upcoming Exchange Management Act adds muscle to the Finance Minister, and puts stiff financial penalties on wilful defaulters.Currently in gazette form pending parliamentary approval, the law allows locals to take out up to Rs.10,000 when leaving the country.rn rnSri Lankans are now legally allowed to hold foreign exchange in overseas bank accounts, without disclosing […]
Long Haul
Sri Lanka is in the top three alongside Thailand and the Maldives as a tourist hotspot for long-haul travel, but still needs a vital mix of peace, competitive rates and new infrastructure to give it that edge. Right up until last year, an average 300,000 tourists visited the island.This year numbers were expected to reach […]