2016 Budget to impact vehicle prices

Sri Lanka’s vehicle importers association says that the introduction of a unit rate for vehicles which will be the minimum value and the tax increase through the 2016 Budget proposal will likely increase the prices of vehicles.

President of the Vehicle Importers Association of Lanka (VIAL), Sampath Merenchige, said that the import tax on 1000cc hybrid vehicles has been increased from 50% to 70% and that this would result in the prices of popular vehicles such as ‘Wagon R’ and ‘Aqua’ increase by around Rs 400,000.

He stated that the tax on electric vehicles has been increased from 5% to 50% and that therefore duty will increase by around 25-30 lakhs.

The tax on vans has been significant increased from 85% to 150% likely resulting in a price increase of 25-30 lakhs.

“We intend to hold a discussion with the Finance Minister regarding this matter, as an association, in order to resolve such shortcoming,” Merenchige told Ada Derana.

He also said that a license is to be issued for importing vehicles which will see an amount of Rs 15,000 charged for cars, Rs 10,000 vans and lorries and Rs 2,000 for motorcycles.
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Sri Lanka to sell-off state shares in Hilton, Hyatt, hospitals and telco firms

ECONOMYNEXT - Sri Lanka's will sell-off 'non-strategic' enterprises including hotels, hospitals and a telecom firm, including ones that have been included in corruption scandals in the recent past.

Finance Minister Ravi Karunanayake in his budget speech for 2016 said Hotel Developers Plc - which owns a building that houses Colombo Hilton was expropriated by the Rajapaksa regime while being a listed company - would sold in the Colombo Stock Exchange.

Lanka Hospitals, a firm that was bought by cash-rich Sri Lanka Insurance when it was privatized fell into state hands when SLIC was reverted to state hands through court decision during the tenor of Sarath Silva, a controversial Chief Justice, would also be sold off.

Lanka Hospital was then largely under the control ousted Sri Lanka President Mahinda Rajapaksa's brother, Gotabhaya.

Using Sri Lanka Insurance, the Rajapaksa's also bought back Shell Gas which now operates as Litro Gas.

The building that houses Hyatt Hotel, would also be sold off. The Rajapaksa administration also expropriated the half built structure which was part of the collapsed Ceylinco property group and used the funds of cash-rich SLIC to re-build it.

The current administration has alleged corruption, inflated contracts and kickbacks to Rajapaksa appointees who were appointed to handle the money.

State shares in Ceylinco Hospitals would also be sold off.

Mobitel, is a unit of listed Sri Lanka Telecom, which has a Malaysian shareholder. The Sri Lanka Telecom is also at the centre of an alleged asset stripping controversy.