'Take cue from India, support micro industries'

COLOMBO: Lauding the Indian government's sops to its small scale industries, an apex trade body here has asked the Sri Lankan administration to emulate its neighbour by offering incentives for the micro industries in the country.

"Taking a cue from India, the government should support micro-industries with non-tariff benefits and other incentives so that the small and medium scale industries will benefit," the Sri Lankan Chamber of Small Industries Secretary Rohan de Silva said.

During a meeting here on Saturday, he also said the government should introduce substantial non-tariff barriers on the import of finished goods to protect and boost local manufacturers and industries.

In its budget wish list for 2008, the Chamber has sought reduction in tax for the micro-industries to 10 per cent from the present 15 per cent and increase in threshold limit for imposing VAT for those small industries whose annual turnover is less than 5 million Sri Lankan Rupees.

Speaking on the occasion, the Chairman of the Ceylon National Chamber of Industries A K Ratnarajah said with the full implementation of the Indo-Sri Lanka Free Trade Agreement in March next year, over 80 per cent of the goods will be imported duty free.

Duty free concessions should be granted on the import of raw materials to help local industries compete better, he said.