Business
Motor trader faces mass exodus with latest tax increases – CMTA
The Ceylon Motor Traders Association expresses serious concerns for the viability of the Motor Industry in the face of the latest increases in taxes proposed by the government. The government imposed a complete import suspension on all types of vehicles (two wheelers, three wheelers, passenger cars & commercial vehicles) in March 2020 citing that it will be for a period of 06 months. But even after 31 months, the core products of the industry are still suspended and the government has not provided any type of relief to the industry to date. Further, due to limitations in establishing LC’s over the last few months, the import of genuine spare parts also reduced, which directly impacted the after sales business, the key revenue line left for the motor companies.
Prior to the import ban, the membership of CMTA employed over 30,000 individuals while over 6,300 island-wide SME’s were managed as dealers, which fuelled the rural economy with over Rs. 2 Billion as dealer incentives. The CMTA members paid over Rs.6 Billion for outsourced services such as security, cleaning, logistics, storage etc, and facilitated vehicle finances of over Rs124 Billion, which sustained many jobs in several trades including leasing and insurance. The excise duty contribution from the motor trade was Rs.130 billion in 2019, which alone accounted for 6.8% of government revenue.
Charaka Perera, Chairman of CMTA said “Due to the import suspension, the motor trade has been crippled and has lost over 10,000 jobs during the last two years. Further, over 1,500 dealers, which were SME’s based island-wide, have closed down which has a direct impact on the rural economy. Stemming from the decline in business, the income of the employees has drastically reduced due to the lack of sales commissions and performance incentives while most of the CMTA Member companies have not been able to provide reasonable increments or bonuses to compensate for the increase in cost of living. In such a backdrop, the increase in inflation to over 64% has made it unsustainable to retain staff. Employees are moving out of the industry as well as out of the country, as they do not see a future within the motor industry. They can use the skills and experience gained to get sales and technical jobs in other countries. This is creating a severe talent drain for CMTA member companies and their operations are being hampered as a result”.
While the motor industry is facing such hardships, the impact of the announcement of the increased taxes for corporates and individuals would be unbearable to the motor trade as well as many other trades. Such a move would ensure a mass exodus of trained experienced employees, on whom the companies have heavily invested to train and who are not easily replaceable.
As such, the CMTA is requesting the government to focus on multiple solutions such as reduction of government expenditure, increasing efficiency of SOEs, increasing the tax payer base and strengthening the tax collection systems, which would negate the requirement to drastically increase taxes for already tax paying corporates and salaried employees.
Founded in 1919, the Ceylon Motor Traders Association (CMTA) is the only trade body that represents global vehicle manufacturers through their locally appointed franchise holders (commonly called ‘Local agents/ Distributors’). CMTA is affiliated to the Ceylon Chamber of Commerce and is the most senior automotive trade association in the region. The members of the CMTA while bringing in international best practices in engineering and management, collectively employ and train thousands of Sri Lankan citizens, developing a talent pool that is trained and employable internationally.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
