13 Essential goods price reduction by removal of taxes - with effect from midnight

Sugar: Rs. 10 reduction - tax reduced from Rs. 28 up to Rs. 10
Milk powder 400g packet will be Rs. 325 (maximum retail price) - reduction of Rs. 61
Sustagen milk powder to be reduced by Rs. 100 (400g)
Flour prices reduced by Rs. 12.50 per kilo
Bread - reduced by Rs. 6
Green grams - reduction by Rs. 40 per kilo
Sprats: Reduction of Rs. 15
Canned fish - Reduced by Rs. 60
Coriander - Reduced by Rs. 60 per kilo
Maldive fish - taxes reduced by Rs. 200
Canned fish - Reduced by Rs. 60
Coriander - Reduced by Rs. 60 per kilo
Chilli powder - Reduced by Rs. 25 (powdered) 

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Casino licences of 3 mixed development projects cancelled

Casino licences for three mixed development projects which drew a lot of controversy has been cancelled,Prime Minister Ranil Wickremesinghe told Parliament a short while ago. Speaking before the budget presentation, he said these projects – Waterfront Properties, Queenbury and Lake Leisure – can continue without casinos. - See more at: http://www.sundaytimes.lk

Sri Lankan shares near 2-wk closing high; budget awaited

Jan 28 (Reuters) - Sri Lankan shares hit a near two-week closing high on Wednesday, a day ahead of the new government's supplementary budget, on hopes of strong corporate earnings after the government implements its promised concessions and tax reductions on key commodities through the budget.

President Maithripala Sirisena's administration will announce its first budget on Thursday and Finance Minister Ravi Karunanayake told Reuters on Monday that the government aims to fulfil its election pledges, including tax cuts and salary hikes.

The main stock index ended up 0.38 percent, or 27.64 points, at 7,395.29, its highest close since Jan. 16. It hit a one-month closing low on Friday.

"The market was driven by speculation on the budget, specially on the expectation of gas price reduction which has a direct impact on the manufacturing sector," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

"The budget is expected give a boost to disposable income as they are looking at reduction of taxes on essential goods and increase in salaries. All in all, this will boost disposable income."

The index also gained after the central bank kept key policy rates steady on Tuesday saying inflation is expected to ease further, though the market had expected some tightening.

Some analysts said investors are still waiting for clarity on the government's policies.

Turnover was 1.3 billion rupees, the highest since Jan. 13 but less than last year's daily average of 1.42 billion rupees, exchange data showed.

Foreign investors were net buyers of 370.4 million rupees ($2.80 million) worth of shares on Wednesday, but they have been net sellers of 453.6 million rupees worth of shares so far this month. They bought a net 22.07 billion rupees worth of stocks last year.

Shares of Lion Brewery Plc rose 5.2 percent, while Hemas Holdings Plc gained 1.12 percent. 

($1 = 132.2500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)