Government institutions and regional chambers must take lead role in creating more awareness on standards among SMEs and help them in implementation.
In this third article in the special series ‘Post-war Economy: 5 Years On’ published on ‘Talking Economics’, Hambantota’s hub ambitions come under the spotlight, and the authors argue that lessons can be learnt from Malaysia in developing a smarter strategy to attract investment.
Last week, a team of Korean experts, who had been tasked with making recommendations on five policy areas for Sri Lanka (including SME development), submitted their final report to the authorities. I was particularly interested when I heard of this visit as I just completed a Visiting Fellowship at the KDI where my key research area was industrial policy in Korea, with a focus on SMEs. In the final research paper, I put forward some aspects of Korea’s SME development that may hold lessons for Sri Lanka. This article highlights some of those ideas for further debate.
Based on a new Working Paper by IPS researchers titled ‘Incentivizing Foreign Investment in Sri Lanka and the Role of Tax Incentives’, this article argues that a key medium-term challenge facing the country is to find a balance between providing a competitive tax incentives regime to attract FDI and keeping tax foregone to a minimum in order to preserve domestic revenue.
With stimulated economic activity in post-war Sri Lanka and the heightened investment in connective infrastructure islandwide there is no doubt that the logistics sector will have a key role to play in supporting growth. Budget 2012 has indeed brought in proposals that give the logistics sector a ‘shot in the arm’. But it is just the beginning.