Finance Minister Basil Rajapaksa assured that the Government would pay compensation to farmers through the Agricultural Insurance Board (AIB) if their yields drop due to the use of organic fertilizer. He said that not only paddy but also 16 other crops have been included in the compensation list by the AIB if there is any loss in the harvest.
“Currently Rs.7,500 per hectare has been paid for the farmers as an initial amount to begin farming from the Rs.12,500 announced earlier,” he added.
He said that funds have already been allocated for compensation and the farmers should not be agitated due to the matter.
The Finance Minister also encouraged the farmers to utilize organic fertilizer and contribute to the government’s policies towards a healthy nation.
The Finance Minister said that Special Commodity Levies could not be revealed at the moment because several parties will reap advantage. “But I would say that these taxes will not be imposed on essential goods; most probably these will be charged on liquor, cigarettes and betting related activities. Therefore, as of now, it is difficult to disclose the Government’s tax policy, but it will be soon publicized”, the Minister added. In addition, Minister Rajapaksa said Investment Zones for new products would be established. Accordingly, Organic fertilizer production industries, Pharmaceutical production, production of raw material for textile and apparel industry, Rubber industrial products, Export based agro-processing, Livestock, Agricultural equipment and machinery, Fisheries and aquaculture development, Production of chemical materials, Electric and electronic appliances and IT products, Production of sports equipment and Steel and heavy metal industry will be prioritised. He added that Rs. 5,000 million will be allocated in this regard.
When inquired by a journalist regarding the rising costs of essential goods, Minister Rajapaksa responded that no Government has ever reduced the price of essential goods and food items. He also added that the only way out of the increasing costs is to increase domestic production. “There are no short term solutions; the solution lies only in expanding production,” he said. The Minister said that the Public sector is a burden to the country, and therefore there would be no further relief with regard to salaries. He said that public funds could not be used any more for salaries as the public sector has massively increased in recent years, which is unbearable for the economy. He also added that the retirement age of the public sector was extended to 65 because experienced persons are needed, and youngsters will be taken in according to the retirement rate.
Finance Ministry Secretary S.R.Attygalle said that the import of vehicles would not be allowed for another six to seven months at least. Therefore, he is of the view that vehicle importation is not a priority at the moment.
Sri Lanka has prohibited vehicle imports since March 2020 in order to manage depleted foreign currency reserves in the midst of the country’s greatest economic crisis resulting from the outbreak of COVID -19.
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