The Budget proposal for 2021 was presented to the parliament by Prime Minister Mahinda Rajapaksa on 17th November 2020 with the primary focus on economic revival as envisaged within the “Vistas of Prosperity and Splendor”, the policy framework of President Gotabaya Rajapaksa and the government.
The Budget has endorsed the need for digital governance and a digitally inclusive economy presenting several proposals for the development of ICT education, technological infrastructure, and the overall ICT sector.
Accordingly, the Prime Minister proposed to allocate Rs. 8000 million to develop the technological infrastructure. He went on to propose an international e-commerce and e-payment system, a high-speed data exchange system, and an improved mobile network system as investment priorities. The allocation of Rs. 8000 million expects to develop a technology-based entrepreneurial economy which also sheds light on the expansion of the exports sector.
Rs. 15000 million has been allocated to expand the “Gamata Sanniwedanaya” (Communication for the Village) project and it is expected to enable reliable broadband coverage throughout the island. The PM elaborated on the government’s plans to provide required infrastructure including communication towers, fiber installations to Telecom service providers in realizing this goal.
In addition, the 2021 Budget proposed to establish five fully-fledged techno Parks in order to strengthen the exports and foreign earnings. Rs. 10000 million has been allocated to establish these technoparks in five strategic locations in Galle, Kurunegala, Anuradhapura, Kandy, and Batticaloa districts which will be connected to the expressway network.
The 2021 budget has also prioritized ICT education and accordingly Technical colleges will be modernized as new technological universities. The PM emphasized the need to focus on ICT and tech-related education which has a huge potential for job generation.
Rs. 3000M has been allocated to provide internet and Television facilities for rural students to follow their studies online. The COVID 19 pandemic has urged the need to turn towards online learning methods, accordingly the government expects to cater to the needs of students living in rural areas and provide an uninterrupted education.
The Budget proposal also includes the provisioning of loans to startups. In that, the government will provide loans of Rs. 500,000 at an interest of 4% as startup capital to support the individuals who wish to start their own businesses.
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