Sri lanka News – Sri Lanka’s government securities and rupee market were neutral on the 2023 budget, desalers said, as President Ranil Wickremesinghe presented it on Monday in a move to signal policies to move out of the ongoing economic crisis.
Dealers, however, said they expect the markets to react positively as there was no major new tax policies announced.
In the secondary market, dealers took a wait and see approach on Monday until they see some clear directions regarding the tax reforms and debt restructuring.
“Currently there is no reaction to the budget speech by the president in the market,” dealers said.
“Since no new direction was given and nothing major was discussed regarding the tax implementation and restructuring, we can expect the market to react positively for that”.
The newly proposed tax reforms before the budget were expected to lead to lowering the interest rates going forward with the government earnings expected to boost with more income tax earnings coming in.
The taxes were expected to be legislated in October 2022, but the parliament will implement them from December because of a Supreme Court determination.
Dealers said if the tax reforms were passed the investors were expected to seek other best return on Investment opportunities such as real estate or the stock market. (Colombo/ Nov 14/2022)
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