BUDGET 2014
November 21, 2013, 12:00 pm , the island
1.0 Introduction
1.1
 Honourable Speaker, I am pleased to present the 9th Budget  of the 
United People’s Freedom Alliance Government having made use of the  
previous 8 Budgets to bring about national security, peace and economic 
progress  to our nation. Our nation is proud today that our Government 
has converted the  once mined lands of the North and East into lands 
that harvest the dividend of  peace and prosperity. The consolidation of
 the democratization process of the 30  year terrorist trapped North, 
having institutionalized a Provincial Council and  Local Authorities in 
the province through free and fair elections, has further  enriched the 
pride of our nation.
1.2 Almost 2 months ago, elections were held in 3 provinces that represent around one third of the population. All political parties participated actively and demonstrated how well the longstanding democratic process has advanced in our country. Out of the 2.7 million votes total polled in three distinctly different provinces, 1.5 million, which is 56 percent voted for the People’s Alliance Government. Our Government is encouraged that a substantial majority of our people continue to place their confidence in "Mahinda Chintana- Vision for the Future" which, is designed to create a proud future for their children. We were further encouraged by the fact that in the North, an overwhelming majority of people have placed their confidence in the democratic process which was denied to them by the LTTE for 25 long years, and proceeded to use the opportunity to elect its Provincial Council for the first time.
1.2 Almost 2 months ago, elections were held in 3 provinces that represent around one third of the population. All political parties participated actively and demonstrated how well the longstanding democratic process has advanced in our country. Out of the 2.7 million votes total polled in three distinctly different provinces, 1.5 million, which is 56 percent voted for the People’s Alliance Government. Our Government is encouraged that a substantial majority of our people continue to place their confidence in "Mahinda Chintana- Vision for the Future" which, is designed to create a proud future for their children. We were further encouraged by the fact that in the North, an overwhelming majority of people have placed their confidence in the democratic process which was denied to them by the LTTE for 25 long years, and proceeded to use the opportunity to elect its Provincial Council for the first time.
(pix by Nimal Dayaratne and Kamal Bogoda)
13 Honourable Speaker, this Budget is also presented soon after hosting the 23rd and the first ever Commonwealth Heads of Government Meeting held in South Asia. It is also the first ever global event that was held in our country since the Non- Aligned Conference held in 1976. We ought to be proud that we were able to restore the prestige of our motherland by being able to mobilize 53 countries and giving them an opportunity to see for themselves the turnaround we have made. The conference also gave ample opportunities to the leaders who attended to witness the economic progress we have made and the stable democracy that prevails, which will convince them that the fabricated viewpoints being aired by those who are campaigning against us are grossly wrong. The rare opportunity we secured by hosting this summit to promote investment opportunities for our country aiming both the vast external markets in the Commonwealth countries as well as the connected global markets, is our main economic benefit from this summit. By hosting this summit 20 years after it was last held in an Asian country, Sri Lanka while brining pride to the whole of Asia was also able to attract global attention to our economy as one of the leading economies in emerging Asia. This will also pave way to increase investments and create employment opportunities. The successful conclusion of this summit with the transfer of leadership of the Commonwealth to our nation is a clear reflection of international recognition of our Government’s foreign policy.
1.4 Despite the predictions 
of dooms and glooms about the  economy, we are humbly proud to note that
 the poverty level has steadily  declined to 6.4 percent in 2013 from 
15.2 percent in 2006. This did not happen  by accident. We took 
electricity, which was available only to urban areas to  almost the 
entire population. We no longer remember the days of power- cuts.  
Electricity for all and at all times, is now a reality. Other facilities
 such as  access to water, quality roads, irrigation systems for lands 
in the dry zone,  better schools, hospitals, housing, sanitation and 
environment preservation have  improved considerably and -continue to 
expand all over the country. "Mahinda  Chintana towards a new Sri Lanka" our Government’s mandate recognizes that  these are basic needs of the people.
1.5
 None of this could have been possible if our security forces  did not 
bring about peace and national security. Our committed farmers brought  
about food security. Our people who work overseas brought valuable 
foreign  exchange to their motherland. Our teachers were committed to 
provide quality  education to our students and our health workers were 
committed to improve  health standards of our people. Our rural based 
public servants worked hard to  revive the rural economy. Our religious 
leaders worked towards religious  harmony. Reviving creative 
initiatives, our artists brought back the values of  our culture and 
arts. Our labour force ensured a higher national income through  
industrial peace and continued productivity improvements. Global 
financial  institutions and entrepreneurs placed confidence in our 
economy. They all  deserve a heartfelt appreciation for their 
uncompromising commitment to promote  peace, national reconciliation and
 economic progress.
2.0 The Economy
2.2 Agriculture, the 
backbone of the livelihood of our rural  community has bounced back from
 the setback faced during the last two years due  to unfavourable 
climatic conditions. The 2013 Yala season has given us a  paddy 
harvest of 2 million MT, which is the highest in recent years. The  
production of maize, soya, black gram, green gram, big onion, potatoes, 
fruits,  and vegetables has also .Strengthened the food supply. The 
production of milk,  dairy, poultry, meat, fish and eggs has also shown a
 similar improvement. Rice,  maize and poultry production is generating 
surplus exports.
2.3 Increased paddy, maize and
 soya bean production has boosted  rice processing, flour milling and 
vegetable oil production. The coconut  production which, severely 
suffered due to the prolonged drought in the coconut  triangle, is 
recovering with a favourable production trend. The production of  tea, 
rubber, cinnamon and other export crops has also shown an improvement  
Remunerative farm gate prices, the fertilizer subsidy, price stabilizing
 tax  structure at the point of imports, provision of quality seeds and 
planting  material and better storage and marketing facilities have 
helped our farmers to  increase production through diversified crop 
cultivation.
2.4 The tourism industry has 
sustained its growth momentum with  foreign tourist arrivals reaching 
1.5 million and domestic tourism expanding to  3.5 million. Foreign 
earnings from the industry during this year is expected to  be around 
US$ 1.5 billion and investments have expanded well over US $ 3 billion  
to create new capacity in this sector to be able to accommodate 2.5 
million  foreign tourists and 5 million domestic tourists by 2015. The 
use of local food,  fabrics, furniture and equipment in the tourism 
industry must be expanded to  further enhance the economic contribution 
of this industry.
2.5 The contribution of the 
country’s construction industry now  accounts for 10 percent of GDR. 
This sector is growing at around 17 percent due  to expanded investments
 in infrastructure as well as higher private investments  in urban 
property development, housing construction, tourism facilities, new  
factories and other logistics. This industry also contributes for the  
development of a wide range of engineering and technical fields as well 
as the  building materials industry.
2.6 
Honourable Speaker, we have offered many incentives to  encourage 
imports competing industries such as cement, steel, tyres/rubber based  
products, agricultural/ tea industry machinery, equipment/ spare parts, 
power  generation/ transmission machinery and equipment, building 
material, furniture  and boat/ship building. Similar encouragements have
 been extended to increase  new investments in food processing, sugar 
and vegetable oil manufacturing, dairy  and pharmaceutical products and 
to increase the production of renewable energy  and coal power. Many of 
these activities have a potential to graduate to export  markets in the 
medium term. The Customs tariffs that will come into force  tonight will
 facilitate the expansion of such value creating and import  competing 
industries. Quality standards will be enforced on imports and exports.
2.7
 Export industries which were confronted by depressed global  markets, 
have picked up showing a 2 percent growth. The apparel industry has  
shown a 6 percent growth and is expected to generate US$ 4,000 million 
export  earnings this year. Value added tea, rubber and cinnamon 
products adds around  US$ 3,000 million to export earnings showing how 
plantation crops could be  translated into being high value manufactured
 exports. Software, gem and  jewelery, handlooms and confectionary 
industries have gained momentum. Export  earnings are expected to 
generate US$. 10,000 million this year. The earnings  from foreign 
employment are expected to be around US$ 7,000 million.
3.0 Priorities of the External Trade Policy
3.1 Our endeavor is to encourage our products to reach large markets such as India, Japan, China, Australia, Saudi Arabia, United Arab Emirates, Qatar, Russia, South Africa and Brazil in addition to American and European markets, to create a new wave in export growth. We have shifted our education system to equip our youth with the required skills for these export industries and to improve their employment prospects with high income and productivity. We also incentivize our producers to develop skills of their employees so that the overall productivity of our workforce will thereby improve. The Government has arranged Euro 90 million low cost funds to provide credit facilities at an interest rate not exceeding 8 percent for manufacturing and SME industries to modernize their factories with energy efficient technology to improve international competitiveness.
3.2 Our banking 
and financial institutions need to focus its  lending towards production
 and value creation industries and move away from  traditional import 
biasness in their operations. To further facilitate the  export industry
 growth, online facilities are in place with regard to port and  customs
 operations. Such facilities will be extended to cover imports as well. 
 We have already declared free ports and bonding facilities to promote 
the value  addition process and expand exports from our country. We have
 set our exports  target to be US$ 20 billion in 2020. Towards this end 
the improvement in  productivity is as important as maintaining a 
flexible exchange rate regime.
3.3 Honourable 
Speaker, our export economy need not be confined  to goods. This country
 has proved its potentials in exporting services such as  business &
 knowledge processing services, professional services, ports &  
aviation services and banking & financial services. These services 
too have  grown remarkably during the last 5 years and are expected to 
generate over US$ 5  billion earnings. As skilled and technical 
categories are encouraged towards  foreign employment, earnings from 
such sources are projected to be around US$ 10  billion in 2016.
3.4
 Our country is now well integrated with international  financial 
markets. The Government and banks have mobilized funds with 5 - 10  year
 maturities through internationally traded bonds. This has improved  
availability of foreign funds required for the financing of both 
Government and  private development expenditure. This has also provided a
 good opportunity for  our exporters, high income earning overseas 
employees, commercial banks and  local funds to put their investments 
and diversify their earnings sources.
4.0 State Enterprises
4.1
 Honourable Speaker, our Government will not privatize state  
enterprises or state banks. I firmly believe that state enterprises 
should have  their presence in the economy for there to be a fair 
balance between the public  sector and the private sector to ensure 
economic and social progress in our  country. Similarly, we have 
formulated laws to protect our land resources from  outright transfers 
to foreign ownership. From this year, foreigners can have  access to 
state and private land only through long-term lease arrangements. As  
infrastructure development has improved the value of all lands, it is 
necessary  to implement a land lease tax structure to protect long-term 
value of lands.  Hence a 15 percent upfront tax will be imposed in the 
event of lease of state or  private lands to foreigners.
4.2
 It is in this spirit that our Government has strengthened  State Owned 
Business Enterprises. The Government budget through its public  
investment program has built up the asset base of Ceylon Electricity 
Board  (CEB), National Water Supply & Drainage Board, Airport & 
Aviation Services and  Sri Lanka Ports Authority to increase their long 
term earning capacity. I  propose to convert all previous loans granted 
to them by the Treasury, to  Government equity in order to further 
strengthen their balance sheets, while  also enabling them to pay annual
 dividend to the Treasury.
4.3 The results from
 our policies are now visible. The power  generation capacity of hydro 
power plants has improved considerably to 1,357 MW.  This has also been 
blessed with the addition of 300 MW from the first coal power  plant, 
thereby enabling the reduction of the use of expensive fuel based power 
 to 294 MW. Renewable energy generation has increased up to 422 MW. 
Transmission  losses of the CEB have reduced to 11 percent. This 
together with the cost  recovery pricing strategy that has been put in 
place has helped the CEB to  eliminate its last year’s loss of Rs. 61 
billion. CEB has also commenced the  reduction of its liabilities to 
banks and the Ceylon Petroleum Corporation  (CPC). The completion of two
 other coal power plants with a further 600 MW of  new generation 
capacity by the end of this year, will further strengthen the  balance 
sheet of the CEB.
4.4 Public investments in new
 water schemes in almost all  provinces have made a stronger revenue 
base for the National Water Supply &  Drainage Board. An investment 
of US$ 300 million has also been made to reduce  revenue water to 20 
percent by 2016. The completion of water supply schemes such  as 
Ruhunapura, Aththanagalle, Kurunegala, Matale, Hambantota, Ampara,  
Anuradhapura, Jaffna, Batticaloa, Dambulla, Mahiyanganaya, Hali Ela, 
Moneragala,  Ratnapura to provide water connections to 1 million 
households by 2016 will make  National Water Supply & Drainage Board
 stronger in its performance. I propose to  establish a National 
Community Water Supply Department to regulate and develop  community 
water supply schemes in order to ensure water quality standards and  
proper maintenance of such projects. I propose to allocate Rs. 300 
Killion for  community water supply initiatives under this Department.
4.5 In terms of the ongoing capitalization to strengthen the two  airlines, a further US$ 150 million will be provided to Sri Lankan  Airlines and US$ 50 million to Mihin Lanka in 2014. The Treasury has made  arrangements to take over the shares acquired in SriLankan
 by the state  banks from the foreign shareholder so that state banks 
could be relieved of this  burden. In order to strengthen the bus fleet 
of Sri Lanka Transport Board (SLTB)  with a further 2,000 buses, 
Rs.1,000 million has been provided to SLTB in  support of its capital 
investments. In addition, I propose to provide Rs. 500  Killion to 
bridge its revenue shortfall.
4.6 Ceylon 
Petroleum Corporation (CPC) has also made a  significant turnaround. It 
has contained its losses and has also reduced its  debt to banks. A 
Government Guarantee will be provided to the CPC to enable the  raising 
of long term capital to restore its depleted pipeline network, storage  
facilities and the refinery. I am pleased to inform this august Assembly
 that,  out of the 54 State Owned Business Enterprises, 47 have been 
turned around to be  profitable entities. I value the contribution made 
by the Committee on Public  Enterprises (COPE) through its Parliamentary
 oversight functions towards the  improvement of governance and 
accountability of these enterprises.
5.0 State of the Budget
5.1
 Honourable Speaker, I wish to remind our fiscal experts in  the 
opposition that our fiscal policy framework has performed better than 
those  followed by them prior to 2005. All post 1977 Governments prior 
to us operated  higher budget deficits than the deficits that, prevailed
 during our time. The  Government during 2002 - 2004 removed pension 
rights of public servants and also  imposed a recruitment freeze to the 
public sector. At that time, no alternative  to privatization was 
considered and public investments were reduced, while  keeping a deficit
 in excess of 8 percent and debt over 100 percent of GDP. This  is the 
reality associated with our fiscal legacy.
5.2 
Our Government, in fact got back some of the already  privatized 
enterprises and certain others that failed after privatization to  
rescue them and put back in business. Gas Company, Sri Lankan, Sri Lanka
  Telecom, Pelwatte and Sevanagala Sugar companies, Colombo Hilton etc. 
are now  government owned and many of them have already paid dividend 
income to the  Treasury. Our budgetary policy enabled us to accommodate 
expenditure on high  public investments, increased salaries and pension 
payments, Samurdhi  benefits, fertilizer and seed subsidies. 
Budgetary allocations were made for the  recruitment of teachers, 
doctors, nurses, other public sector employees and  around 100,000 
unemployed graduates to various positions in the public service.
5.3
 Further, funds were also provided for the liberation of the  country 
from terrorists, to demine a large area of 1,557 sq km of land, resettle
  nearly 300,000 displaced persons and to develop livelihood avenues for
 them. The  budgetary provisions were also used for the restoration of 
security, peace and  development. Provisions were increased to implement
 the recommendations of  Lessons Leant and Reconciliation Commission and
 to popularize the usage of  bilingual practices to promote national 
reconciliation. We have also been able  to provide a Living Allowance to
 all parents of our three forces, disabled  soldiers and those who 
unfairly lost their livelihood simply because they rose  against the 
labour repression in 1980 July. The development expenditure for  rural 
development is unprecedented.
5.4 Honourable 
Speaker, with all these, the budget deficit has  been reduced to 5.8 
percent of GDP this year. We target a budget deficit of 5.2  percent of 
GDP in 2014 and 4.5 percent in 2015. We are determined to bring down  
the budget deficit to 3.8 percent by 2016 and reduce our Debt /GDP ratio
 to 65  percent. That is the legacy we propose to leave behind for our 
future  generations.
6.0 Government Revenue
6.1
 The Government revenue this year is likely to be around Rs.  1,100 
billion. Revenue from Income tax, VAT and NBT on domestic activities has
  increased by 14 percent and is on a buoyant growth path.
Revenue
 from taxes imposed at the point of Customs remained  sluggish due to 
the reduction in motor vehicle imports. Revenue from Excise  taxes on 
liquor and cigarettes has moderated.
6.2 
Honourable Speaker, we need to strengthen the Government  revenue 
efforts in view of high commitments of the Government to provide a wide 
 range of public services, welfare programs and public investments. The 
 Government has introduced several measures to prevent leakages 
associated with  tax on liquor, motor vehicle imports under 
concessionary duty schemes, under  invoicing in the importation of used 
motor vehicles, steel, tyres and motor  spare parts. Accordingly motor 
vehicle deprecation schedule applied at the point  of import for the 
calculation of Customs based taxes will be revised to prevent  under 
valuation.
6.3 It is proposed to extend the 2 
percent NBT applicable to the  banking sector to all banks and financial
 institutions to provide equal  treatment to the banking and non-banking
 sectors and to expand the tax base. It  is also proposed to fix the 
tax-free threshold applicable for VAT on supermarket  scale retail trade
 at Rs. 250 million per quarter. In order to prevent  manipulations on 
the computation of turnover through exempted items, I propose  to fix a 
limit of 25 percent of the total turnover as exempted value from VAT in 
 relation to such business. Telecommunication Levy will be fixed at 25 
percent
6.4 The Inland Revenue Department (IRD)
 is being computerized to  make tax administration efficient and tax 
payment simple. A new Revenue  Administration Management Information 
System (RAMIS) is being introduced to  automate the processes of IRD and
 eventually link the IRD with Sri Lanka  Customs, Department of the 
Registrar of Companies, Department of Motor Traffic,  the Land 
Commissioner General’s Department and the Ministry of Finance and  
Planning. The new system will enable the use of a Personal 
Identification Number  to coordinate all transactions and will also to 
facilitate online tax payments  etc.
7.0 The Current Expenditure
7.1
 The Government current expenditure at around Rs. 1,200  billion remains
 higher than Government Revenue. The payments of salaries and  
allowances to public servants for the provision of education, health, 
rural  development, administrative and extension services and national 
security total  Rs. 390 billion. A further Rs. 125 billion is spent on 
pensions. Fertilizer  subsidy, pharmaceutical drugs and a wide range of 
welfare expenditure takes  another Rs. 100 billion. These expenditures 
must be secured. The total interest  cost of Rs. 445 billion of which, 
domestic interest payments amount to Rs. 360  billion needs to be 
managed. However, the reduction of interest rates must be  done 
gradually in order to protect both the savers as well as borrowers.  
Further, it is necessary to maintain development expenditure at the same
 scale  of 6 percent of GDP to be able to expand economic activities.
7.2
 The proper coordination of development programs in each  sector in 
terms of economic priorities is necessary to maximize benefits from  
public expenditure when foreign loans and grants are utilized in 
addition to  taxes and domestic borrowings. Therefore, I recommend that 
all grant-aided  projects should also to be channeled only through the 
Consolidated Fund and the  National Budget, like foreign loan funded 
projects having to follow the  applicable planning procedure. To ensure 
consistency and to avoid duplicity in  the implementation of the 
national development process, all expenditure of the  private sector and
 Development Partners that will qualify for social  responsibility 
related tax exemptions, will be implemented having aligned with  
national development programs. Since grants do not create a debt and 
hence has  no bearing on the deficit, I propose to create additional 
provisions in the  Budget, on account of such grant assistance.
8.0 Agrarian, Livelihood and Irrigation Development
8.1
 Honourable Speaker, we consider that our rural centric  development 
strategy must focus on agriculture for food security, traditional  
healthy living, bio diversity, a clean environment and a higher income 
to the  rural people. Budget consultations with the farmer community 
representing all  districts in the country, expressed confidence in the 
Government’s agricultural  policy and development strategy. They did not
 ask for any handouts and wanted  the Government to concentrate on 
improving irrigation, providing quality  drinking water and protection 
from wild animals. Therefore, the 2014 - 16 medium  term Budget will 
give priority to these areas. Accordingly the 2014 Budget has  allocated
 Rs. 1,700 million for downstream and livelihood development activities 
 associated with the recently developed major reservoirs such as 
Weheragala,  Rambaken Oya, Deduru Oya. I propose to increase the 
irrigation budget by a  further Rs. 14,000 million for the early 
completion of Yan Ova, Uma Oya and  Moragahakanda development programs, 
as they will help to improve irrigation and  drinking water facilities 
to several difficult areas in the south and north and  also enable power
 generation.
8.2 The farmers on their own 
suggested the need to reduce the  usage of chemical fertilizer and 
pesticides to reduce their harmful effects on  food, water quality, 
health, animals and the soil. Since such a shift would take  some time, I
 propose to continue with the fertilizer subsidy scheme to provide  all 
varieties of fertilizer at Rs. 350/per 50 kg bag for paddy cultivation  
during both the Yala and Maha seasons. A subsidized price 
of Rs.  1,250 per 50/kg bag will also be continued for all other crops. I
 propose to  allocate a further Rs. 300 million in 2014 to encourage 
interested farmers and  seeds farms, to produce quality planting and 
seed material and make them  available in the market under a registered 
trademark recognized by the  Agriculture Department. Purchasing centers 
of Divi Neguma agrarian  services linked to Lak Sathosa will
 be set up so as to ensure that  farmers will be able to secure 
guaranteed producer prices for potato, onion,  dried chilies and grain 
varieties.
8.3 The Government has recruited 
qualified field level officers  to the Agriculture Department and the 
Agrarian Development Department to  strengthen extension services. Funds
 will be allocated to modernize all 300  Agrarian Development Centers to
 be able to meet farmer needs. I propose to  implement a three-year 
rehabilitation program to restore abandoned paddy land  and put them 
back to productive use by cultivating paddy, fruits, vegetables and  
also for floriculture, using organic fertilizer. I propose to allocate 
Rs. 2,300  million in 2014 for the rehabilitation of tanks, minor 
irrigation schemes and  abandoned paddy lands. I propose to grant a 
monthly allowance of Rs. 300 to  field level officers in agricultural 
extension services,’ veterinary services,  irrigation and wildlife. I 
propose to provide motorcycles on five-year lease  basis, to all such 
field level officers to improve their regular availability at  field 
level and also to pave way for them to own an asset at the end of the  
lease term.
9.0 Partnership with the World Food Program
9.1
 Honourable Speaker, the United Nations World Food Program  has assisted
 our nation in the past to feed displaced people affected by  terrorist 
attacks, the Tsunami and various other natural disasters. In  
appreciation of this assistance, our country is now in a position to 
provide  food for the needy people who are faced with similar situations
 in other  countries. Therefore, I propose to donate 50,000 MT of rice 
to the World Food  Program of which 10,000 MT will be given to World 
Food Program office in Sri  Lanka. The Government has requested ‘that 
Sri Lanka be registered as a supplier  nation to the World Food Program 
so that our farmers can grow rice to be  supplied to external markets 
while also serving a worthy cause. I consider that  the revival of 
agriculture is a reflection of being able to restore the  traditional 
pride of our farmer community. Hence, I propose to setup a Revolving  
Fund of Rs. 300 Mn. under each District Secretary in the major grain 
producing  districts, to streamline related production and marketing 
activities.
10.0 Smallholder Plantations
10.1
 Honourable Speaker, smallholder plantations also play a  significant 
role in our economy. The Government provides assistance to these  
cultivations by subsidizing planting material, replanting, new planting 
and  fertilizer. In order to be able to get best results from the 
prevailing  subsidies I propose to grant Rs. 5,000 per acre, once a year
 subsidy, to all tea  smallholders to improve the conditions of their 
lands through water and soil  conservation.
10.2
 I also propose to support land preparation towards water  retention, 
soil conservation and to increase the use of organic fertilizer for  
smallholder coconut cultivation. The prevailing high taxes on edible oil
 at the  point of Customs will be maintained to increase long-term 
cultivation interests.  It is proposed to restrict the importation of 
coconut oil and palm cornel and  remove Nation Building Tax on coconut 
oil millers for 3 years to strengthen the  coconut industry. A new 
incentive scheme will be implemented to encourage  manufacturers of coir
 products for export in recognition of their value addition  in foreign 
exchange. The CESS applicable on the export of tea, rubber, coconut,  
cinnamon and pepper in primary form will be further strengthened to 
channel such  revenue to encourage value added exports made out of these
 primary products.
11.0 Large Scale Plantations
11.1
 Large-scale plantations were privatized in 1992 on 50-year  lease 
arrangements. However, some of these plantation companies are lagging  
behind. I propose to undertake a comprehensive assessment of the under  
performing plantation companies. Similarly, the best performing 
plantation  companies that have increased their productivity, 
application of bio fertilizer,  and engaged in worker welfare, brand 
promotion and investments to promote high  value tea exports should be 
encouraged. Therefore each plantation company will  be required to 
submit a report on their performance with development plans and  
targets, before March 31, 2014 to enable the Golden Shareholder being 
the  Government to make appropriate decisions for the development of 
plantations  under each company. I propose to implement a credit scheme 
with 8 year maturity  and 6 percent interest to every company that has 
so far performed well, provided  they - commit to replant an agreed 
extent, are committed to ensure social  development of its plantation 
workers and increase the volume of its value added  tea exports. I 
propose that banking institutions will earmark around Rs. 500  million 
for this development loan scheme in 2014. Provisions of existing leases 
 will be suitably amended incorporating new conditions necessary to 
ensure the  development of this important sector.
12.0 Farmer Pension Scheme and Crop Insurance Scheme
12.1
 1 propose to implement a pension scheme to provide a  minimum of Rs. 
1,250 as a monthly pension for farmers over 63 years of age, from  
January 2014.1 propose to use the proceeds of the Govi Setha 
lottery  along with a capital contribution of Rs. 1,000 million from the
 Government to  strengthen this contributory Pension Fund. The 
introduction of a contribution  from farmers, who use the fertilizer 
subsidy scheme as announced in my last  Budget, should provide a regular
 flow of funds in support of payment of  compensation for crop failures.
 I propose to extend this to cover all  smallholder farmers engaged in 
all crops so that they could also be compensated  in the event of such 
causality. The Government is also in the process of  securing Standby 
Funds from the World Bank to compensate losses due to adverse  climatic 
conditions, without creating an unanticipated burden to the Budget.
13.0 Research and Food Technology
13.1
 The Government has granted a wide range of incentives for  research and
 development as well as a Research Allowance to university lecturers  
and other scientists. The Government and private sector partnership in 
setting  up of a science park for the promotion of nanotechnology in 
manufacturing has  confirmed how well the two sectors can work together 
with mutual trust in  furthering advanced technology and research We are
 encouraged with the research  initiatives undertaken by both private 
and public sector institutions  particularly in the field of 
agriculture. Research initiatives of Sabaragamuwa,  and Wayamba 
universities in food technology and livestock and their active  
involvement with such industries have produced results. Systems and 
procedures  required to be followed by research institutes will be 
further simplified to  encourage the active involvement of universities 
and for research institutions  to be able to meet market demands. I 
propose to allocate Rs.500 million for  research lab facilities, 
equipment and research work by agricultural faculties  in provincial 
universities at field level together with successful ventures in  dairy,
 poultry, inland fisheries, animal husbandry and food technology.
14.0 Lead Export Industries
14.1
 Sri Lanka’s high value tea, apparel and handlooms and  rubber products 
dominate country’s exports, employment and value chain  activities. Our 
Government’s vision is to raise export earnings of these three  
industries to US$ 10 billion by 2016. In the case of apparel exports, 
our vision  is to position Sri Lanka among the top ten high quality 
apparel manufacturing  countries in the world by 2020. Therefore, in 
support of further innovation in  this industry, triple deductions will 
be provided for research and innovation  carried out within businesses, 
while recognizing the cost of purchasing  international intellectual 
property rights and the cost of operations relating  to such rights, for
 tax deduction. Royalty income will be made tax free for a  period of 7 
years. Higher value added tea exporters securing prices in excess of  
US$ 12 per kg., having established internationally reputed local brands 
in  packed form having used 75 percent home grown tea, will be permitted
 to import  any specialty tea, free from restrictions to facilitate 
blending to meet market  needs. High value tea and rubber product 
exports will be encouraged through  increased cultivation of these crops
 and by maintaining a high level of CHESS on  primary commodity exports.
 Market access to Japan, India and China will be  explored for these 
commodities through Bilateral Trade Arrangements, in view of  the high 
trade deficit Sri Lanka runs with the three countries.
15.0 Fisheries Industry
15.1
 Honourable Speaker, the development of fisheries harbors,  anchorages, 
landing centers, cold rooms and market facilities have expanded the  
production capacity of the fisheries industry. During the last five 
years, 2,524  multi day vessels, 3,743 one day vessels and 4,743 normal 
vessels have been  added to the industry. The fish harvest has doubled 
in the last 5 years and has  reached 500,000 MT. Production of inland 
fishery has contributed to 20 percent  of the total fish production.
15.2
 The production of dried fish and sprats, maldive fish,  canned fish and
 fish food has increased, and has resulted in supporting  livelihood 
activities of the people engaged in this industry, while also  reducing 
related imports from 80,000 MT in 2010 to 70,000 MT by 2013. I propose  
to maintain higher Custom based taxes on related imports to promote 
local  production of these activities. The incentives provided to small 
and medium  enterprises engaged in the exports of fish food and 
ornamental fish will be  further expanded.
15.3
 Priority will be given for the rehabilitation of existing  harbor 
facilities, the early completion of Silawathura, Gurunagar, Gandara and 
 Kalametiya fishery harbours, the development of fishery harbours and 
anchorages  at Wennappuwa, Chilaw, Kapparathota, Dodandoowa, Hikkaduwa 
and Negombo lagoon  and also to further increase the number of fishing 
boats during 2014. I propose  to allocate Rs. 1,000 million for these 
development activities. I propose to  maintain a high tax structure on 
fishing boats at the point of import, to  promote the local boat 
manufacturing industry.
16.0 Dairy, Livestock and Poultry Industries
16.1
 Honourable Speaker, in our effort to reach self-sufficiency  in milk, 
the local milk production has increased and supplies 40 percent of  
local consumption requirements. The importation of 4,500 high yielding 
cows has  contributed to improve the production of Government dairy 
farms. Private sector  dairy farms as well as small and medium 
enterprises have substantially increased  their investments in this 
sector. Further, the Divi Neguma initiative  encourages backyard 
dairy farm activities. I propose to allocate funds to import  a further 
20,000 high quality cows to promote small and medium dairy farms in  
order to increase the annual average yield in excess of 1,500 liters of 
milk per  cow. A special loan scheme at an interest rate of 8 percent 
will be implemented  in support of SMEs in the dairy sector to promote 
dairy farms, collection  centers and equipment, the development of 
animal feed etc. A high CESS will be  maintained on the importation of 
butter, yoghurt and dairy products, to further  support the dairy 
industry.
16.2 Poultry production in 2013 has exceeded 153,000 MT  eliminating the deficit production that prevailed in 2009. Divi Neguma
  program has contributed to increase the informal market contribution 
to 34  percent I propose to introduce a pricing formula based on the 
cost structure in  place of a price control on poultry to regulate 
pricing and to safeguard both  the consumer as well as the producer. I 
also propose to introduce a grant  scheme. to neutralize impact on 
production costs due to taxes payable on inputs  to encourage exports. 
As this industry has witnessed a rapid expansion, I  propose to allocate
 Rs. 200 million to strengthen related veterinary services  with modern 
facilities, recruitment of veterinarians and to grant a monthly  
allowance of Rs.7,500 for veterinarians.
17.0 Divi Neguma - Gama Neguma
17.1
 Honourable Speaker, Divi Neguma initiative has nurtured  several 
backyard economic activities among households since it was first  
launched in 2010 with the objective of setting up one million backyard  
economies. It has now entered the 5th round. In this round, Divi Neguma 
 intends to develop 125,000 model home gardens, which will encourage the
  production of seed and planting material suitable to targeted areas 
based on  climatic conditions. I propose to grant Rs. 10,000 each to the
 5 best Divi  Neguma backyard economies/ home gardens in each Grama Niladari
  division to incentivize those who participate in this novel concept of
 micro  enterprise development with the participation of the entire 
family. I request  all banks and financial institutions to grant at 
least 500 working capital loans  of Rs. 25,000 at an interest rate of 6 
percent without requiring any collateral  to such winners, towards 
developing greenhouse farms, poultry/ livestock /fish  farms or 
handloom/small industries so that Divi Neguma families could  emerge as successful entrepreneurs.
17.2
 Villages situated in difficult geographic locations are  unable to 
fully benefit from mainstream development activities primarily due to  
lack of proper transportation. In order to resolve this problem, the 
Government  recently implemented a program to construct bridges in such 
areas to establish  connectivity for transportation. I propose to 
accelerate this initiative by  completing the construction of 1,000 such
 bridges in 2014. This is expected to  connect 500,000 such lagging 
villages and provide such villages easy access to  community water, 
education, health and livelihood activities through the Gama  Neguma initiative
 for which I propose to allocate Rs. 4,500 million. I  propose to 
allocate Rs. 300 million to provide small buses to these areas to  
improve transportation. I also propose to grant an allowance of Rs. 
15,000 to  District Secretaries, Rs. 5,000 to Divisional Secretaries and
 Rs. 3,000 to  Planning Directors and Chief Accountants attached to 
District Secretariats to  incentivize them to coordinate rural centric 
work and to promote better  expenditure management and supervision at 
district level.
18.0 Child Nutrition
18.1
 Honourable Speaker, special initiatives must be undertaken  to reduce 
malnutrition in pregnant and lactating women and in children. I  propose
 to engage family health services to provide greater attention towards  
promoting breastfeeding, use of nutritious food for children while also 
ensuring  them better health care. Divineguma/Samurdi programs 
will be used to  popularize the consumption of homegrown vegetables, 
milk and eggs towards  promoting better nutrition. I propose to allocate
 the required funds and employ  nutrition specialists in each district, 
teach the importance of proper nutrition  to school children, and carry 
out community level mobile clinics to promote  balanced nutrition. I 
also propose to impose regulatory restrictions relating to  food related
 advertisement by permitting to advertise only foodstuff with  
reasonable nutritional values. I propose to work with the World Food 
Program,  UNICEF and Food and Agriculture Organization to collectively 
implement a  nationwide accelerated nutrition initiative to reduce 
malnutrition and get  maximum productivity from annual expenditure of 
around Rs. 7,000 million  incurred by the Government on various programs
 to increase nutritional levels.
19.0 Women Enterprises
19.1
 A large number of women are engaged in successful micro  enterprises 
involving a wide range of high quality products while generating a  good
 source of family income and creating employment opportunities for our  
people. These entrepreneurs explained to us that their business 
environment is  constraint by a variety of payments imposed on land and 
buildings, inadequate  working capital, complicated title related 
levies, insistence of traditional  securities for small loans, 
administrative rigidities and lack of sensitivity to  their businesses 
by financial institutions and Government service providers.
19.2
 1 propose to implement a Women Micro Enterprise Credit  Guarantee 
Scheme against which Regional Development Banks and SME Banking Units  
of Commercial Banks will provide working capital loans up to Rs. 250,000
 without  requiring security. Age limit to be eligible for such loans 
will be extended up  to 68 years. Beyond that age, a designated family 
member could be nominated to  qualify to obtain further facilities. I 
propose to dedicate 2014 — 2015 for  Women Enterprise Development, to be
 facilitated by Regional Development Banks.
20.0 Small Businesses and the Economy of the Self-employed
20.1
 Honourable Speaker, small scale shops, tea shops, repairing  stations, 
restaurants, tailor shops, saloons, small groceries in commercial  
centers, small trade outlets on pavements and weekly fairs etc. provide 
 self-employment opportunities to a substantial number of people. A 
large number  of consumers also benefit from these widespread service 
providers. I propose to  issue Divi Neguma entitlement cards to 
small entrepreneurs subject to a  payment of Rs. 500 to exempt them from
 having to pay multiple payments to local  authorities. I also propose 
to reduce the annual lease rental of land leased by  state agencies to 
such cardholders to Rs.1,000 if the extent is less than half  an acre. 
This facility will also be extended to Samurdhi beneficiaries,  
who are already eligible for several other benefits. I propose to 
simplify the  provisions in long term leases given by state agencies to 
small entrepreneurs  for commercial purposes and in the case of any such
 lease that has already gone  on for over 10 years, the lessee will be 
given the option to convert the  arrangement to a 50 year long term 
lease. I propose that 50 percent of  investment savings of Divi Neguma and Samurdhi beneficiaries
 and  small time traders in banks, be used to give small loans to them 
at a low rate  of interest, on the basis of a group security to be given
 by such borrowers. I  propose to exempt small traders engaged in 
businesses with a monthly turnover  less than Rs.50,000 from all levies 
imposed by local authorities. Arrangements  will be made to provide 
suitable space to payment hawkers and small traders  involved in mobile 
businesses along new roads, in trade centers and weekly fairs  in 
metropolitan areas.
20.2 I propose to set up a 
Revolving Fund to provide credit  against confirmed supply orders from 
reputed buyers to promote small craftsmen  engaged in the manufacturing 
of unique artifacts, home decor, designer fabrics,  embroidery work, 
pottery and production of items using precious metals. I  propose to 
restrict the importation of household and office furniture and remove  
prevailing restrictions on the transportation of furniture within the 
country to  encourage the local furniture industry. Hotel and property 
developers are  encouraged to use locally manufactured furniture to the 
maximum extent possible.
21.0 Social Services
21.1
 The government has expanded welfare support for the  elderly, the 
differently abled and low-income families under various  initiatives. In
 the 2013 Budget, I granted a Rs. 1,000 monthly allowance to the  
elderly. Almost 221,000 elderly people have benefited from this scheme. A
 Rs.  3,000 living allowance was extended to differently abled people. 
Skills  development training is given to them through vocational 
training to empower  them to be engaged in livelihood activities. I 
propose to provide Rs. 100  million to modernize these vocational 
training schools located all over the  country to improve vocational 
training facilities, including the provision of  new equipment and the 
introduction of new courses.
22.0 Child Abuse and Violence Against Women
22.1
 Honourable Speaker, it is disappointing to note that our  value-based 
society nurtured with religion, culture and traditions has to  witness 
child abuse and violence against women. Sri Lanka Women’s Bureau, Child 
 Protection Authority and Sri Lanka Police have expanded many 
initiatives to  prevent these incidents. I propose to allocate Rs.300 
million to engage field  level officers at Divisional Secretariats to 
facilitate to prevent such  incidents. It is proposed to set up more 
safe-houses for the benefit of such  victims and expand the units set up
 in police stations to be able to better deal  with incidents of child 
abuse or violence against women. It is important to  expand awareness 
programs in schools through parents - teachers societies and by  
establishing a network with the involvement of Samurdhi societies
 and  community based organizations to Address these concerns and also 
to promote  volunteers to be engaged in family counseling.
23.0 Empowering Pradeshiya Sabhas
23.1 Community infrastructure facilities associated with  Sathi polas,
 waste management, drainage systems, access roads, children’s  parks, 
public sanitation facilities etc. have not been improved as Pradeshiya  Sabhas have
 not generated adequate income to be able to purchase basic  machinery 
and equipment required to upgrade and maintain them. Hence, I propose  
to provide capital equipment such as tractors, small construction tools 
and  machinery to every Pradeshiya Sabha in 2014. I also propose to provide  Rs. 1 million per month to every Pradeshiya Sabha
 to supplement their  working capital so that community infrastructure 
facilities could be maintained  and rehabilitated in an orderly manner.
24.0 Wildlife Protection and Conservation
24.1
 During Budget consultations, it was revealed that the  cultivation of 
animal fodder in reserved areas and the rehabilitation of water  tanks 
and such other facilities are essential to prevent animals from entering
  villages. I propose an allocation of Rs. 10 million to each relevant 
Divisional  Secretariat to develop Wildlife Conservation and Community 
Protection Schemes  taking into consideration the specific needs of each
 such Divisional Secretariat  area. I propose to allocate Rs. 200 
million to the Wildlife Department to  purchase required utility 
vehicles and equipment. I also propose to extend the  insurance scheme 
introduced in the 2013 Budget to compensate losses to human  life and 
property to cover crop damages as well, from 2014.
25.0 Health Services
25.1
 Honourable Speaker, as our people are now confronted with  new 
challenges with the increase of non-communicable diseases such as 
cancer,  stroke, heart attacks, kidney failure etc. we need to make a 
concerted effort to  take control of the situation. Work is already in 
progress to transform  Maharagama Cancer Hospital to be able to manage 
an increased number of indoor  and outdoor patients. I also propose to 
set up radioiodine treatment and  radiotherapy units at Jaffna, Kandy, 
Kurunegala, Badulla, Anuradhapura and Galle  hospitals to reduce the 
waiting list of patients for such treatment at the  Maharagama Cancer 
Hospital from three and a half years to less than six months.  These 
modern centers will have facilities for preventive examinations and 
early  detection as well as cost effective treatment using modern 
machinery and  equipment. National Stroke Center of Sri Lanka will be 
set up to manage stroke  related medicare. Facilities to provide 
medicare to kidney patients availing  sufficient doctors and medicine 
will also be provided on an accelerated basis.  Preventive care against 
kidney diseases will also be taken through the provision  of safe 
drinking water to all on an urgent basis, through awareness champagnes  
to prompt farmers to move away from the use of chemical fertilizer and  
pesticides and by promoting the consumption of unprocessed food more 
favourable  for consumption. I propose to allocate Rs. 900 million to 
provide Reverse  Osmosis (RO) water purification plants to villages in 
the North Central Province  in which access to quality pipe borne water 
is not available in order to prevent  waterborne diseases.
25.2
 It has been planned to provide an additional allocation of  Rs. 2,000 
million in 2014 for the development of cost effective infrastructure  
facilities to deal with non- communicable diseases during the 2014 -16 
Medium  Term Budget Framework. I propose to allocate Rs. 1,000 million 
for the  accelerated modernization of the two national children’s 
hospitals as centers of  excellence capable of providing the next 10 
year pediatric care needs of our  country and the related medical 
research facilities. Colombo, Kalubovila and  Ragama hospitals cater 
daily to around 10,000 outdoor patients and 7,500 indoor  patients. 
Since a large number of patients from Colombo and the surrounding  
districts rely on the services of these hospitals, the facilities in 
them should  be expanded and modernized. I am encouraged that the 
People’s Republic of China  has extended an outright grant to develop 
the OPD treatment and ancillary  facilities of these 3 hospitals at a 
cost of around US$ 180 million. I propose  to provide additional 
provisions in 2014 and 2015 to accommodate this grant aid  for the 
development of health services in the country. I propose to increase the
  annual Uniform Allowance for nurses, family health workers and other 
staff by a  further Rs. 500 - 1500 and the On-call Duty Allowance for 
paramedical staff by  Rs. 150 per month to encourage health sector 
employees. I also propose to  increase the Risk Allowance by Rs. 50 -100
 for those in eligible risk  categories. When even the richest nations 
which charge for healthcare are  struggling to finance such services to 
their people, we all should be proud for  not only providing 
pharmaceutical drugs but also indoor and outdoor health care  service 
throughout the country, completely free of charge.
26.0 Arts and Culture
26.1
 Honourable Speaker, with the widespread development  witnessed across 
regions it is necessary that the Government expands modern  
infrastructure facilities for performing arts and culture currently 
confined to  Colombo. In this context, I have secured a grant aid of 
around Rs. 3,000 million  to set up two performing arts and cultural 
centers in Kandy and Anuradhapura  within the 2014-16 medium term budget
 framework. Further, steps have been taken  to modernize cultural 
centers in Jaffna, Trincomalee and Galle. The  modernization of the 
Lionel Wendt Art Center, Lumbini Theater, and Galle  Municipal 
Council Theatre will also be commenced in 2014. I propose to channel  
budgetary provisions to implement special projects to document our 
heritage,  culture and traditions and to popularize them among our new 
generation.
27.0 Holiday Bungalows for Artists
27.1
 1 propose to allocate land blocks and provide seed capital  to build 5 
holiday bungalows exclusively designed for artists. I request artists  
to top-up the Government contribution through a fund raising campaign to
 make  them enthusiastic partners of this initiative and rally round Sri
 Lankan tourism  to project country’s performing arts and the film 
industry. The performance of  our multi talented artists at the opening 
ceremony of the Commonwealth Heads of  Government Meeting amply 
demonstrated their capacity to take the massage of  peace and 
reconciliation through rich performing arts of our country.
28.0 Education
28.1
 Honourable Speaker, the Budget estimates placed before this  august 
Assembly have provided Rs. 125 billion for general education. Rs. 80  
billion is spent on teacher salaries and Rs. 10 billion to provide 
textbooks,  uniforms, mid day meals and transport subsidies. The 
creation of a  child-friendly school system, developing Mahindodaya
 laboratories,  teacher training, quality improvements of text books and
 teaching material and  the introduction of technology streams to 
advanced classes are given priority in  the public investment program in
 the medium term. The development of 6,000  schools including 1,000 Mahindodaya
 laboratories and the rehabilitation  of rural schools will be completed
 in 2014. An allocation of Rs. 1,000 million  will be provided to 
upgrade sanitation and other facilities in rural schools. A  further Rs.
 750 million will be allocated to develop Maharagama Teacher Training  
College as a well-equipped training center on all subjects, while 
facilities in  all other teacher training colleges in the country will 
also be upgraded.  Furthermore, steps will be taken to implement the 
recommendations of the  committee appointed to resolve the remaining 
problems of Sri Lanka Teachers  Service, Sri Lanka Principals Service, 
Sri Lanka Educationists Service and Sri  Lanka Education Administrative 
Service and to improve the quality of education.
29.0 Pirivena Education
29.1 The 2014 -16 Medium Term Pirivena Education Strategy  aims at raising the student population associated with Pirivena education  by 25 percent by 2016. Towards achieving this target, the teacher participation  in Pirivena education also needs to be increased by 25 percent. I propose  to provide Rs. 500,000 to each Pirivena to improve classrooms, libraries,  computer labs, furniture and equipment in order to upgrade Pirivena  education facilities. I also propose to extend facilities such as distress  loans, property loans, the Agrahara Insurance Scheme benefits and railway  warrants to Pirivena
 teachers. Similarly, I propose to increase the  Student Allowance for 
monks to Rs. 15 per day and other students to Rs. 5 per  day.
30.0 Skills Education
30.1
 Honourable Speaker, our country needs to implement a  fast-track skills
 development program to meet market demands by gearing our  youth to be 
able to secure high paid jobs and also to improve productivity in  
industries and services in the next decade. The Government has therefore
 secured  around US$ 350 million budget support from the World Bank and 
the Asian  Development Bank to supplement Government expenditure on 
skills education.  Accordingly, expenditure on skills development and 
youth affairs has been  increased to Rs. 12,105 million in 2014 to be 
shared with external funding  facilities to accelerate skills education 
in the country in the next 2 years. A  diploma awarding Technical 
College that is affiliated to the Moratuwa University  will be setup in 
Homagama.
30.2 The 2014 - 2020 Vocational 
Education Strategy consists of  rehabilitation and construction of 
Technical Colleges and Vocational Training  Centers, development of 
training material and the provision of equipment, staff  training and 
professional development. These program will target extending  technical
 competencies in agriculture, IT, accounting, irrigation, construction, 
 ship and boat building, ocean technology, tourism, beauty care and high
 tech  competencies required for overseas skilled employment I propose 
to increase the  allowances given to lecturers and students to 
incentivize skills education and  increase Diploma Holders with National
 Vocational Qualification (NVQ) Standards.  The aim of skills education 
is to develop 50,000 diploma holders and 50,000  certificate holders in 
different skills with NVQ Standards by 2015.
31.0 University Housing, Townships & Facilities for Advanced  Studies and Research
31.1
 Honourable Speaker, our universities have implemented a  program to 
transform our university township environment to facilitate to  upgrade 
the university education of our country. We have given high priority to 
 resolve accommodation constraints of our university students. We have  
implemented a hostel construction program in 15 universities for 15,000 
students  at a cost of Rs. 15,000 million. This will completely solve 
the accommodation  problems of first year and final year university 
students. Incentives will be  provided to those who provide further 
accommodation facilities from the  surrounding university township 
environment. I propose to increase the Academic  Allowance of university
 lecturers by 5 percent of the basic salary in accordance  with our 
commitment to provide attractive remuneration over the medium term.
31.2
 The medium term development programs include the  establishment of an 
Engineering and Technology Faculty in the Sri  Jayewardenepura 
University, Information Technology Center in the Kelaniya  University, 
an Advanced Medical Faculty in the Peradeniya University and an  
Electronics, Petroleum and Aeronautical Engineering Faculty in the 
Moratuwa  University. The capacity expansion of management, food 
technology, veterinary  science and agriculture faculties of Colombo, 
Wayamba, Jaffna, Rajarata,  Eastern, Uvawellassa, Sabaragamuwa and 
Ruhuna universities and the expansion of  advanced degrees in indigenous
 medicine and Ayurvedic teaching hospitals are  also recognized as 
priorities of the medium term. Along with these, the planned  
improvements in the quality of higher education are expected to require 
an  estimated additional sum of Rs. 9,000 million over the medium term. I
 propose to  top up the 2014 allocations by 2,000 million to accelerate 
these initiatives.
32.0 Sri Lanka as a Regional Medical Hub
32.1
 Honourable Speaker, we have increased the number of medical  
specialists to 1,500 through an increase in the number of doctors and 
medical  researchers with postgraduate qualifications. Our strategy is 
to double the  number, so that every 100,000 of the population will have
 11 Specialist Doctors.  This will provide 15,000 more doctors 
graduating from medical schools, with  postgraduate opportunities. It 
will also enable a higher number of specialist  doctors to be deployed 
to District Hospitals and to be attached to private  hospitals.
32.2
 The Ministry of Health has formulated a National Drug  Policy Act for 
the regulation of drug use, clinical trials and research  activities in 
specialized hospitals. Time has also come to recognize the urgent  need 
for a proper Regulatory setup on food quality. Parallel to these  
developments, we propose to expand the subject areas of the Postgraduate
  Institute of Medicine, and to double the intake for postgraduate 
studies in  medicine. I propose an allocation of Rs. 2,500 million to 
build a  state-of-the-art Post Graduate Institute of Medicine over the 
next 3 years. This  new Post Graduate Institute will connect 
neighbouring teaching hospitals, while  also extending modern facilities
 required for their postgraduate research and  advanced studies. I also 
proposed to setup a Centre of Medical Excellence to  continue to obtain 
the services of specialized medical professionals after the  completion 
of their service term and to broaden specialized medical services in  
our country.
32.3 I propose to give priority to
 increase medical specialists  capable of treating kidney ailments, 
malnutrition and similar contemporary  challenges in our society. The 
Government will seek international research and  technology 
collaboration for our universities focused towards improving the  
quality of drinking water, particularly in rural areas. I also propose 
to grant  a monthly Intern Allowance of Rs.750 for medical interns 
engaged in hospital  services and a Research Allowance for medical 
professionals to encourage them to  engage in internationally recognized
 research and professional development  initiatives.
33.0 Professional Services Hub
33.1
 Honourable Speaker, our country has made unprecedented  progress in the
 field of accountancy, commerce, finance, law, IT, engineering  and 
architecture. The number of people engaged in these professions has  
increased considerably. Therefore, I propose to support internationally 
reputed  professional institutes to expand such professional and 
technical programs at  provincial level to increase the number of 
qualified professionals and technical  assistants in our country. I 
encourage the formation of corporate entities to be  engaged in Business
 Process Outsourcing in human resource management, finance  and 
accounting, law and procurement etc. and deliver high quality services 
to  global customers. A 5-year half tax holiday will be given to promote
 the  formation of such new partnerships or firms to be engaged in 
international   
 
 
 
  
She need not,therefore,explain her actions.
This too,is also to appease the President.
If students or teachers disobey,they will be arrested by the army and taken to distant camps for ‘rehabilitation’.
November 16, 2013 at 9:39 pm
Fleas like Mekka Silvas.
November 16, 2013 at 11:10 pm
Wish the southern SINGHALA universities had half the courage to stand up for ACADEMIC FREEDOM!
Most of the lecturers in the Sri Lanka university system are themselves an ignorant, swabasha educated (Sinhala or Tamil) lot of frogs in the well.
The university lecturers have no standards and most themselves do not know the meaning of “academic ethics or freedom”, so what do you expect from the poor students?
November 17, 2013 at 1:43 pm
November 16, 2013 at 11:50 pm
November 17, 2013 at 6:32 am
So, all it is about “CONTACTS” you have.
November 17, 2013 at 9:39 am
November 18, 2013 at 3:50 am
November 17, 2013 at 11:57 am
They should know that they are violating University Act passed by Parliament& Goverment/UGC Circulars.
November 17, 2013 at 10:05 pm