The Ceylon Chamber of Commerce (CCC) is encouraged by the stated commitment of the government to reduce the Budget deficit, increase investments on infrastructure and to support identified sectors of the economy. We have repeatedly pointed out in the past, that implementation is the key to success in achieving budgetary targets. In this regard, we recognize that achieving the stated revenue targets, whilst managing expenditure, would be an enormous challenge, particularly, in view of the increasing defense expenditure and the colossal burden of debt service.

This would require a very careful and disciplined management of the economy.

Whilst applauding the focus on improving domestic industries such as dairy and agriculture, we also note that adequate emphasis has not been given to enhance the overall productivity and competitiveness of the economy, especially, for export oriented industries and services.

Greater emphasis on development of exports is essential to achieve the economic growth targets. Singular lack of reference to improving the productivity of the large and growing public sector is indeed disappointing. However, the support extended to apparel, gems and jewellery and shipping sectors is, undeniably, laudable.

We also note that a number of initiatives being undertaken by the Government, could be better served through appropriately structured public-private partnerships.

The CCC will continue to interact with the authorities, towards achieving the development objectives of the Nation, in a private sector friendly manner.