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Budget 2024: Pragmatic Implementation & Timely Execution Will be Key, says CCC

The Ceylon Chamber of Commerce views the 2024 Budget as a critical continuation of macroeconomic stabilization efforts initiated in late 2022 to address Sri Lanka's economic challenges. Acknowledging past macroeconomic mismanagement, the budget takes a determined approach, enforcing fiscal forbearance and strengthening fiscal rules through the Central Bank of Sri Lanka (CBSL) Act and the Public Finance Management (PFM) Bill. Emphasizing fiscal discipline and adherence to IMF targets, the budget sets ambitious revenue goals crucial for economic recovery and securing IMF disbursements. Practical measures, including the requirement of a Tax Identification Number (TIN), aim to broaden the tax base. The Chamber applauds the inclusion of its recommendations in tax administration, trade, digitalization, climate finance, and public sector reform. Fast-tracking digital ID processes and trade-related reforms, along with factor market reforms, are highlighted. The focus on debt restructuring, sector-specific measures, and ongoing reforms in SOEs and banking are deemed essential for attracting foreign investment and realizing economic growth. Despite recognizing the budget's promising framework, the Chamber emphasizes that success hinges on rigorous and efficient implementation.