Vision 21

A sum of Rs 41.4 billion ($575 million) was allocated for defence in the budget for the year 2000, tabled in Parliament by President Chandrika, in her capacity as the Minister of Finance, on 14 February. Rs 47 billion was allocated for 1999, 5% of GDP, but by the end of the year it had risen to Rs 56 billion ($777 million).

The economic strategy for the new millennium is titled ‘Vision 21’ and is said to be aimed at building a modern and prosperous economy based on humanitarian values and ushered by a people-friendly and caring government.

Observers are concerned that while the LTTE has declared the year 2000 as the ‘year of war’, the government’s budget appears to be a ‘war budget’ inspiring little confidence in the peace process. The National Security Levy (NSL), which is a contribution for the war, was extended to all services, excluding some, such as water, electricity, health, transport and construction.

The NSL was introduced in 1996 and rose last year to 5.5%. Observers say that Sri Lanka is the only country in the world where serving foreign institutions are required to contribute to the war. Professionals who are liable to contribute to the Save the Nation fund are exempt from paying the NSL. A separate industrial zone will be established this year to attract investors for the manufacture of belts, boots, uniforms etc. for the use of the armed forces and for export.


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