Foreign remittances will not be taxed – CB Governor
Governor of the Central Bank, Arjuna Mahendran, yesterday assured all Sri Lankan expatriates that their savings would not be taxed if they decided to remit their savings here.
“There was a perception all this time that Sri Lanka was not a location to bring back their savings as they were under the impression that all their savings would be taxed due to the government being cash strapped,” Governor Mahendran told Ceylon Today.
Sri Lanka is now a very safe place to invest and all of them could bring their savings and invest here which will not be taxed, the Governor assured.
He also commended Finance Minister Ravi Karunanayake, who made the initial announcement about inviting all Sri Lankan expatriates to bring their monies here, claiming that no questions would be asked. “It demands lots of courage for the Finance Minister to be outspoken in that manner and this is also the first time that a Sri Lankan Finance Minister had spoken in that manner,” Mahendran said.
Responding to a question as to whether that also included the funds which were alleged to be stolen by senior members of the former regime, he denied so.
“What we are talking of, is the legitimate funds which have been earned and saved by the Sri Lankans working overseas and not these monies which were alleged to be stolen,” he explained.
The funds which were alleged to be stolen, are of a different parameter. It is up to the Criminal Investigations Department (CID) and the Financial Crimes Investigations Department to probe those and recover these stolen funds and we have nothing to do with that, he said.
He also commended the expatriate workers who remitted over US$ 20 billion, which was almost a third of the nation’s GDP, which was around US$ 75 billion.
There are over a million Sri Lankans working overseas, and if they bring all their savings here that would amount to an increase of about US$ 33 billion where the GDP would be around US$ 100 billion within the next three years, the Governor said.
(Source: Ceylon Today)
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Of course, there will be no taxes on the earnings of our mothers and daughters who are slaves to the oil sheiks.
However, please consider investing in my son-in-law’s finance company where he offers a very high return.
I am not sure what the foreign policy in Sri Lanka is but it is time that all foreign exchange transactions ought to go through the Central Bank and not through private banks and money traders.
Further according some reports Mahendran’s 10 billion dollar statistic is suspect. According one report India received 70 billion dollars worth of remittances in 2014. Kerala with with over 2.4 million working in the middle east accounted for 36% of the States GDP. Comparatively Sri Lankan GDP exceeds that of Kereala and Mahendran estimates that million sri Lankans working abroad remit 10 billion dollars. Further of the million a large number are domiciled in Europe USA and Canada and contributes little to the Lankan economy. Further Mahendran’s promise of tax exempt means nothing for they are taxed in the US and our banks are expected to report on dollar deposits in SL. Finally all global transactions are taxed and in addition they levy a service fee as well
Shameless Bank Robber, a foreign national who robber my country in broad daylight !
Manjula, If he robbed, who offer him protection to carry on in the job?
Hey Ganja,
Why are you so jealous about the SIL of the CB Governor. After all it has he has still not been proven guilty. All his dealings have been with the esteemed former Governor’s next of kin. Dealing in ganja alone must have made you a rich man with your high connections with the influential local drug mafia. Be contended with what you have.
Ganjapani is right. Mr Mahendran desires increasing the GDP to US$ 100 billion in 3 years.
Does anyone care about the modern day slavery of our precious womenfolk in Shiekdoms?
I wish Mr Mahendran would come up with a brilliant economic plan that will abolish this slavery in 3 years time by providing socio-economic opportunities to Sri Lankans in their own soil?
The GDP can be US$ 100b or even US$ 200b; but the abuse and harassment undergone by our mothers and daughters and sisters in the shiekdoms should make us hang our heads in shame.
Between Jan 8 and Aug 17, a few VW cars were assembled in a tin shed in rural Sri Lanka and this was portrayed by the rulers as an industrial breakthrough.
The rulers should understand that we do not have a propensity to metal based industries; we live by the land and our flesh and blood are into agriculture.
That is where we can excel; not the folks who frequent night clubs in the city but real, down-to-earth Lankans who toil with their limbs to produce food for the ‘crows’ in the cities.
I fully agree with Manjula and Indra.
This shameless Big Bank Robber is continuing to occupy this big chair in the Central Bank despite being advised by the Pambaya to resign his post.
This Mahendran is supposed to be a ‘brilliant economic mind’. He’s been in his chair for more than 6 months and nothing has been done.
The only ‘brilliant’ idea he has come up with is continuation of the selling our mothers and sisters to Middle Eastern oil sheikhs to earn revenue. I guess he gets a bonus when the GDP rises to US$10b.
Mahendran floated the Rupee and its now fetching SLR 140 to the US$.
The IMF and World Bank are poised to providing ‘support’ to to the Pambaya’s Government. Just wait and see. Taxes will go through the roof and schools and universities will not have enough funds to pay wages.
The Mahendran – Ravi K combine spells disaster to the economy. The latter is a pal of an ex-LTTE billionaire languishing in a US prison.
Where is Malik S , the super minister for economic development? Busy making deals on his own?
The Pambaya’s Yahapalanaya government is reeking with corruption and is a sinking ship that is destined to hit the seabed shortly.