Currently released so far... 97115 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden 00. Editorial United States Latin America Egypt Jordan Yemen Thailand

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05 2011/06 2011/07 2011/08
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/09 2011/05/10 2011/05/11 2011/05/12 2011/05/13 2011/05/14 2011/05/15 2011/05/16 2011/05/17 2011/05/18 2011/05/19 2011/05/20 2011/05/21 2011/05/22 2011/05/23 2011/05/24 2011/05/25 2011/05/26 2011/05/27 2011/05/28 2011/05/29 2011/05/30 2011/05/31
2011/06/01 2011/06/02 2011/06/03 2011/06/04 2011/06/05 2011/06/06 2011/06/07 2011/06/08 2011/06/09 2011/06/10 2011/06/11 2011/06/12 2011/06/13 2011/06/14 2011/06/15 2011/06/16 2011/06/17 2011/06/18 2011/06/19 2011/06/20 2011/06/21 2011/06/22 2011/06/23 2011/06/24 2011/06/25 2011/06/26 2011/06/27 2011/06/28 2011/06/29 2011/06/30
2011/07/01 2011/07/02 2011/07/04 2011/07/05 2011/07/06 2011/07/07 2011/07/08 2011/07/10 2011/07/11 2011/07/12 2011/07/13 2011/07/14 2011/07/15 2011/07/16 2011/07/17 2011/07/18 2011/07/19 2011/07/20 2011/07/21 2011/07/22 2011/07/23 2011/07/25 2011/07/27 2011/07/28 2011/07/29 2011/07/31
2011/08/01 2011/08/02 2011/08/03 2011/08/05 2011/08/06 2011/08/07 2011/08/08 2011/08/10 2011/08/11 2011/08/12 2011/08/13 2011/08/15 2011/08/16 2011/08/17 2011/08/19 2011/08/21 2011/08/22 2011/08/23 2011/08/24 2011/08/25

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/03 1972/08
1973/04 1973/10
1975/03
1979/08
1985/01 1985/02 1985/03 1985/04 1985/05 1985/06 1985/10
1986/02 1986/05 1986/08 1986/09 1986/11 1986/12
1987/04 1987/06 1987/07 1987/09 1987/12
1988/01 1988/03 1988/04 1988/07 1988/08 1988/09 1988/10 1988/11 1988/12
1989/01 1989/03 1989/04 1989/06 1989/09 1989/11 1989/12
1990/01 1990/02 1990/03 1990/07 1990/08 1990/10 1990/11 1990/12
1991/01 1991/03 1991/05 1991/06 1991/07 1991/08 1991/09 1991/10 1991/11
1992/01 1992/03 1992/04 1992/05 1992/06 1992/07 1992/08 1992/09 1992/10 1992/11 1992/12
1993/01 1993/02 1993/04 1993/07 1993/10 1993/11 1993/12
1994/01 1994/02 1994/03 1994/04 1994/05 1994/06 1994/08 1994/11 1994/12
1995/01 1995/02 1995/03 1995/04 1995/05 1995/06 1995/07 1995/08 1995/09 1995/10 1995/11 1995/12
1996/06 1996/07 1996/08 1996/09 1996/11
1997/01 1997/02 1997/03 1997/04 1997/05 1997/06 1997/08 1997/09 1997/10 1997/11 1997/12
1998/02 1998/03 1998/05 1998/07 1998/08 1998/11 1998/12
1999/01 1999/09 1999/10 1999/11 1999/12
2000/04 2000/05 2000/06 2000/07 2000/08 2000/09 2000/10 2000/11 2000/12
2001/01 2001/02 2001/03 2001/04 2001/05 2001/06 2001/07 2001/08 2001/09 2001/10 2001/11 2001/12
2002/01 2002/02 2002/03 2002/04 2002/05 2002/06 2002/07 2002/08 2002/09 2002/10 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Antananarivo Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Alexandria Consulate Adana American Institute Taiwan, Taipei
Embasy Bonn Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Brazzaville Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangui Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Belfast Consulate Barcelona
Embassy Cotonou Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chiang Mai Consulate Chennai Consulate Chengdu Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar DIR FSINFATC Consulate Dusseldorf Consulate Durban Consulate Dubai Consulate Dhahran
Embassy Freetown Consulate Fukuoka Consulate Frankfurt
Embassy Guatemala Embassy Grenada Embassy Georgetown Embassy Gaborone Consulate Guayaquil Consulate Guangzhou Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Hong Kong Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Izmir Consulate Istanbul
Embassy Jakarta Consulate Johannesburg Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kolonia Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Krakow Consulate Kolkata Consulate Karachi Consulate Kaduna
Embassy Luxembourg Embassy Lusaka Embassy Luanda Embassy London Embassy Lome Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy Libreville Embassy La Paz Consulate Leipzig Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Mission Geneva Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Mogadishu Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maseru Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Merida Consulate Melbourne Consulate Matamoros Consulate Marseille
Embassy Nouakchott Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Nuevo Laredo Consulate Naples Consulate Naha Consulate Nagoya
Embassy Ouagadougou Embassy Ottawa Embassy Oslo Consulate Osaka Kobe
Embassy Pristina Embassy Pretoria Embassy Praia Embassy Prague Embassy Port Of Spain Embassy Port Moresby Embassy Port Louis Embassy Port Au Prince Embassy Podgorica Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Ponta Delgada Consulate Peshawar
Embassy Quito Consulate Quebec
REO Mosul REO Kirkuk REO Hillah REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Surabaya Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy Tirana Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana Consulate Thessaloniki
USUN New York USMISSION USTR GENEVA USEU Brussels US Office Almaty US Mission Geneva US Mission CD Geneva US Interests Section Havana US Delegation, Secretary US Delegation FEST TWO UNVIE UN Rome Embassy Ulaanbaatar
Embassy Vilnius Embassy Vientiane Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde Consulate Yekaterinburg
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AF ADANA ASEC AFIN AMGT AE AORC AID AR AO AU ASEAN AGOA AFGHANISTAN AFFAIRS AMED APER ASECARP APEC AEMR AS AA ANET AFLU ABLD AL ASUP AJ APECO AMER ABUD AODE AM AFSN AESC AND AG ALOW AROC AVIANFLU ATRN ACOA AEGR AMGMT AADP AFSI ACABQ APRM AZ AIDS ASE AGAO ADCO ABDALLAH ARF AIDAC ACOTA ASCH AC ASEG AGR ACS AMCHAMS AN AMIA ASIG ADPM ADB ANARCHISTS ALOWAR ARM AUC AINF AINT AORG AY AVIAN AMEDCASCKFLO AK ARSO ARABBL ASO ANTITERRORISM ARABL AOWC AGRICULTURE ALJAZEERA AMTC AFINM AOCR ABER ARR AFPK ASSEMBLY ASSK AZE AORCYM AINR AGMT AEC ACKM APRC AIN ASCC AFPREL ASED APERTH ASFC ASECTH AFSA AOMS AORCO ANTXON ARC AFAF ADIP AIAG AFARI AEMED AORL AX ASECAF AOPC ASECAFIN AFZAL APCS AMB AGUIRRE AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL AIT ARCH AMEX ALI AQ ATFN AMBASSADOR AORCD AVIATION ARAS AINFCY ACBAQ AOPR AREP ALEXANDER ATRD AEIR AOIC ABLDG ASEX AFR ASCE ATRA ASEK AER ALOUNI AMCT AVERY APR AMAT AEMRS ASPA AFU AMG ATPDEA ALL AECL ACAO ASECKFRDCVISKIRFPHUMSMIGEG AORD AFL AME ADM ASECPHUM AGIT ABT ASECVE AGUILAR AT ABMC ALZUGUREN ANGEL ASR ANTONIO
BMGT BEXP BM BG BL BA BR BTA BO BY BBSR BLUE BK BF BTIO BELLVIEW BE BU BN BH BD BC BTC BILAT BT BX BRUSSELS BP BB BRPA BUSH BURMA BMENA BESP BIT BBG BGD BMEAID BAGHDAD BEN BIO BMOT BWC BLUNT BURNS BUT BGMT BAIO BCW BOEHNER BFIF BOL BASHAR BIMSTEC BOU BIDEN BZ BFIN BTRA BI BHUM BOIKO BERARDUCCI BOUCHAIB BORDER BEXPC BTIU BTT BIOS BEXB BGPGOV BOND BLR
CE CG CH CVR CASC CU CI CD CO CDG CB CJAN CPAS COM CVIS CMGT CT CENTCOM CNARC CTERR COUNTER CHIEF CDC CTR CBW COUNTRY CLEARANCE CY CA CM CS CWC CN CITES CF CWG CIVS CFIS CASCC CROATIA CONS COUNTERTERRORISM CASA COE CJ CHR CODEL CR CBC CACS CHERTOFF CAS CONTROL CONDITIONS CONDOLEEZZA CITEL CV CLINTON CHG CZ CON CTBT CEN CRIMES COMMERCE CLOK CRISTINA CFED CARC CND CTM CARICOM COUNTRYCLEARANCE CBTH CHINA CSW CICTE CJUS CYPRUS CW CAMBODIA CENSUS CIDA CRIME CBG CBE CMGMT CAIO CEC CARSON CPCTC CEDAW COMESA CVIA CWCM CEA COSI CAPC CGEN COPUOS CGOPRC COETRD CKGR CFE CQ CITT CIC CARIB CVIC CLO CAFTA CVISU CHRISTOPHER CACM CIAT CDB CIS CUL CHAO CNC CL CSEP COMMAND CENTER COL CAN CAJC CUIS CONSULAR CLMT CIA CBSA CEUDA CAC CROS CIO CPUOS CKOR CVPR CONG CONTROLS CEPTER CVISCMGTCASCKOCIASECPHUMSMIGKIRF CDCE
DPOL DEMARCHE DHS DR DA DISENGAGEMENT DEMOCRATIC DEFENSE DJ DY DARFUR DHRF DEA DTRO DPRK DO DARFR DOC DRL DK DOJ DTRA DOMESTIC DAC DOD DEAX DIEZ DEOC DELTAVIOLENCE DCOM DMINE DRC DCG DPKO DOMESTICPOLITICS DE DB DOT DEPT DOE DHLAKAMA DHSX DS DKEM DAO DCM DANIEL DEM DAVID DCRM
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
FR FREEDOM FINREF FJ FI FRELIMO FOREIGN FAA FETHI FAS FTAA FRB FAO FCS FINANCE FWS FTA FEMA FDA FLU FRANCISCO FBI FORCE FO FARC FK FT FCSC FAC FM FMGT FINV FCSCEG FARM FERNANDO FINR FIN FINE FIR FDIC FOR FOI FCUL FKLU FMLN FISO FIXED
GM GMUS GG GR GE GAZA GT GH GZ GJ GLOBAL GV GABY GOI GA GCC GB GY GATT GC GUAM GEORGE GTIP GOV GOMEZ GUTIERREZ GL GKGIC GF GU GWI GARCIA GTMO GN GANGS GIPNC GAERC GREGG GUILLERMO GASPAR GERARD GI
HK HR HUMANR HUMAN HO HA HUMANRIGHTS HU HHS HIV HUM HRKAWC HILLEN HILLARY HDP HUMRIT HSTC HUMANITARIAN HCOPIL HADLEY HURI HL HRETRD HOURANI HG HARRIET HESHAM HI HNCHR HARRY HRECON HRC HOSTAGES HEBRON HUMOR HSWG HYMPSK HECTOR HN HYDE HUD HRPGOV HIGHLIGHTS
ID ILC IS IZ ICAO IMO ITU IR IAEA ICRC IPROP IT IBRD ISRAELI IRAQI ISSUES ITRA IV IO IGAD IRAQ IN IMF ICTR ISCON IADB IDB IEA INR IWC ICCAT ILO INMARSAT IOM ICJ IQ ISPA ITRD IPR INTELSAT ISN IAHRC INTERNAL IFAD IICA IHO IRAN IL IRCE IC INTELLECTUAL IRM IE ICTY IDLI IFO ISCA INF INL ISRAEL INV IBB INFLUENZA ISPL ITER ITIA INRA ISAF IACHR INTERPOL IFR IRS INRB IEF ISAAC ICC INDO IIP IATTC INAUGURATION IND INS IZPREL IACI IEFIN INNP ILAB IA IMTS ITALY ITALIAN IFIN IRAJ IX ICG IF ITPHUM ITA IP IACW IK IUCN IZEAID IRPE IDA ISLAMISTS ITF INRO IBET IDP IRC ISO ICES IRMO ITPGOV IQNV IMSO IRDB IMET INCB IFRC
JA JO JP JM JCIC JOHN JE JEFFERY JS JUS JN JOHNNIE JAMES JKUS JOSEPH JML JAWAD JSRP JIMENEZ JOSE JKJUS JK JAPAN
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
LE LU LH LA LG LO LY LANTERN LI LABOR LORAN LTTE LT LAS LAB LAW LVPR LARREA LEBIK LAURA LS LOTT LOVE LR LEON LAVIN LGAT LV LAOS LOG LN LB
MOPS MO MARR ML MASS MZ MR MNUC MX MV MCC MY MEDIA MTCRE MG MCAP MOPPS MP MI MK MC MD MA MU MASC MW MT MEPP MN MTCR MH MEPI MIL MNUCPTEREZ MMAR MICHAEL MUNC MDC MPOS MONUC MAR MGMT MAS MEPN MENDIETA MARIA MONTENEGRO MOOPS MSG MARITIME MURRAY MUKASEY MOTO MCA MFO MEX MRSEC MMED MACP MAAR MINUSTAH MCCONNELL MAPP MGT MARQUEZ MANUEL MNUR MCCAIN MF MOHAMMAD MOHAMED MNU MFA MILITANTS MINORITIES MTS MLS MILI MIAH MEETINGS MERCOSUR MED MARAD MNVC MINURSO MNUCUN MIK MARK MBM MPP MILITARY MAPS MNUK MILA MTRRE MACEDONIA MICHEL MASSMNUC MUCN MQADHAFI MPS MARRGH MRCRE MTRE MORALES MAP MCTRE MHUC MOPSGRPARM MOROCCO MCAPS
NL NU NS NI NPT NATO NO NG NATEU NSF NZ NAS NP NDP NLD NGO NEPAD NAFTA NASA NEA NGUYEN NIH NK NIPP NONE NR NANCY NEGROPONTE NRR NERG NSSP NSG NSFO NE NATSIOS NFSO NATIONAL NTDB NT NCD NTSB NRC NELSON NAM NH NPG NEC NSC NFATC NMFS NATOIRAQ NAR NZUS NARC NCCC NA NC NEW NRG NUIN NOVO NATOPREL NEY NV NICHOLAS NPA NW NARCOTICS NORAD NOAA NON NTTC NKNNP NMNUC NUMBERING
ODIP OIIP OPRC OSCE OREP OTRA OPET OSCI OVIP OECD OCII OUALI OPDC OEXC OFPD OPIC OFDP OPCW OECV OAS OM OMIG ODAG OPREP ORA OIC OEXCSCULKPAO OIG OASS OFFICIALS ORTA OSAC OIL OIE OEXP OPEC OPDAT OMS OES OHI OMAR OCRA OFSO OCBD OSTA OAO ONA OTP ORC OAU OXEC OA ODPC OPDP OVIPPRELUNGANU OASC OSHA OPCD OTR OPPI OPCR OF OFDPQIS OSIC OHUM OSTRA OASCC OBSP OFDA OPICEAGR OIM OGAC OTA OTRAORP OPPC OESC OCEA OVP ON OPAD OTAR OCS ODC OTRD OCED OSD ORUE OREG
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS
QA QUAN QUOC QM QI QADRI QT QU
RS REFUGEES RW RP RELFREE RO REGIONAL RIGHTS REACTION REPORT RU RENAMO RIGHTSPOLMIL REFORM RM REFUGEE REL RELATIONS ROW RREL REGION RATIFICATION RBI RICE ROOD RODENAS RUIZ RODHAM ROBERT RGY ROY REUBEN RELIGIOUS RUEHZO RODRIGUEZ RUEUN RELAM RSP RF RSO RCMP REO ROSS RPTS RENE REID RUPREL RMA RI REMON RPEL RFE RFIN RA RAFAEL RAY RUS RPREL ROBERTG RECIN RAMONTEIJELO
SNAR SP SN SMIG SL SOCI SU SG SF SENV SZ SOE SCUL SY SO SR SYR SE SA SW SIPDIS SCIENCE SADC SI SCI SOCIETY SC SAARC STR SECRETARY SANC SSH ST SNA SGWI SEP SOCIS SETTLEMENTS SPECIALIST SK SHUM START STET SCVL SREF SCHUL SCUIL SYRIA SECURITY SPCE SYAI SMIL SOWGC STEPHEN SNRV SKCA SENSITIVE SECI SNAP SPP SCUD SOM SPECI SMIGBG SENC SCRM SGNV SECTOR SENVEAGREAIDTBIOECONSOCIXR SENVSXE SASIAIN SACU SENVSPL SWMN STEINBERG SOPN SOCR SCOI SCRS SILVASANDE SWE SARS SNARIZ SUDAN SENVQGR SM SNARKTFN SAAD SD SAN SIPRNET STATE SENS SUBJECT SFNV SECSTATE SSA SPCVIS SOI SOFA SCULKPAOECONTU SPTER SKSAF SENVKGHG SHI SEVN SANR SPSTATE SMITH SCOM SH SNARCS SNARN SIPRS SNARM SIPDI SCPR SNIG SELAB SULLIVAN SENVENV SECDEF SOLIC SOIC SPAS SASC SOSI SEC SEN SENVCASCEAIDID
TU TH TW TSPA TRGY TPHY TBIO TIFA TS TZ TX TSPL TT TK TC TINT TERFIN TERRORISM TIP TURKEY TI TECHNOLOGY TNGD TRSY TRAFFICKING TOPEC TPSL TP TD TR TA TIO TREATY TO THPY TECH TRADE TPSA TG TAGS TF TRAD THKSJA TVBIO TNDG TN TBIOZK TWI TV TWL TRT TWRO TSRY TTPGOV TAUSCHER TRBY TRBIO TL TPKO TIA TGRY TSPAM TREL TNAR TBI TFIN TPHYPA TWCH THOMMA THOMAS TERROR TRY TBID TPP TE THANH TJ TBKIO
UNGA USUN UN UG UNSC UK UP US UNCTAD UNVIE UNHRC USTR UNAMA UNCRIME UNESCO UV UNDP UNHCR UNCSD UNCHR UZ USAID UNEP UNO UNPUOS UY UNDC UNCITRAL UNAUS UNCND UA UNMIK USTDA USEU USDA UNICEF UR UNFICYP USNC USTRRP UNODC UNRWA UNOMIG USTRPS USAU USCC UNEF UNGAPL UNFPA UNSCE USSC UGA UEU UNMIC UNTAC UNION UNCLASSIFIED USPS UNA UMIK USOAS UNMOVIC UNFA UNAIDS UNCHC USGS UNSE UNRCR UNTERR USG UE UAE UNWRA UNCSW UNSCR UNCHS UNDESCO UNPAR UNC UB UNSCS UKXG UNGACG UNREST UNHR USPTO UNFCYP USCG UNIDROIT UNSCD UPU UNBRO UNECE USTRUWR UNCC UNESCOSCULPRELPHUMKPALCUIRXFVEKV
VM VE VT VETTING VN VZ VIS VC VTPREL VIP VTEAID VTEG VOA VA VTIZ VANG VISIT VO VENZ VAT VI VEPREL VEN
WFP WTO WHO WTRO WBG WMO WIPO WA WI WSIS WHA WCL WE WMN WEBZ WS WAR WZ WMD WW WILLIAM WEET WAEMU WM WWBG WWT WWARD WITH WMDT WTRQ WCO WEU WALTER WRTO WB WHTI WBEG WCI WEF WAKI WHOA WGC
XA XM XR XL XY XC XK XF XT XD XG XI XH XB XE XW XX XV XXX XJ XU XS XZ XQ XO XP XFNEA XTAG
YM YMOEXC YI YE YL YEH YMCS YOUSSEF YU
ZO ZI ZK ZR ZF ZU ZL ZP ZA ZIM ZANU ZJ ZM ZOELLICK ZCTU ZB ZN ZH ZT ZFR ZEALAND ZW ZXA

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 04COLOMBO1905, GSL BUDGET "NOT AS BAD AS WE THOUGHT;" BUSINESSES

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #04COLOMBO1905.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
04COLOMBO1905 | 2004-11-24 09:22 | 2011-08-25 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Colombo

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 05 COLOMBO 001905

    SIPDIS

    SENSITIVE

    DEPT FOR SA/INS:JBRENNIG; PLEASE PASS TO TREASURY:C.CARNES;
    COMMERCE:A.STERN; USTR:J.ROSENBAUM; MCC:S.GROFF

    E.O. 12958: N/A
    TAGS: ECON ETRD EFIN CE ECONOMICS
    SUBJECT: GSL BUDGET "NOT AS BAD AS WE THOUGHT;" BUSINESSES
    EXPRESS RELIEF

    REF: A. A) COLOMBO 1858

         ¶B. B) COLOMBO 1171
         ¶C. C) COLOMBO 490

    ¶1. (SBU) Summary: Finance Minister Amunugama presented the
    GSL's 2005 budget proposal to Parliament on November 18.  The
    budget included a number of provisions to expand revenue
    collection, widen the tax base and numerous new spending
    initiatives aimed primarily at the public sector, the rural
    sector and Small and Medium Enterprises (SME).  On the
    revenue front, VAT has been expanded to three tiers,
    corporate tax deductions were cut and fees and tax surcharges
    were increased.  Some reforms were offered for the Department
    of Inland Revenue, but fell short of the dramatic overhaul
    that had been pushed by the previous Government.  On the
    expenditure front, the budget includes funding for a new SME
    "bank," assistance to the apparel sector (anticipated in
    light of the pending removal of quotas in January),
    infrastructure projects and a significant salary increase for
    public sector employees (as well as funding to hire an
    additional 30,000 high school grads into public sector jobs).
     The GSL proposes to increase revenue collection from 15% of
    GDP to 19% over four years.  It has also pledged to roughly
    halve the deficit by 2008.  While overall commentary on the
    budget has been largely positive, much of it falls into the
    category of "it's not as bad as we thought."  Opposition
    criticism has been muted.  The budget continues to send the
    signal that it is government, rather than the private sector,
    which should be the engine of economic growth.  At a time
    when the GSL needs to be focused on increased trade
    competitiveness and showing that it is "open for business,"
    the budget does nothing to address either requirement.
    Perhaps having completed a "home grown" budget, something the
    GSL saw as a political necessity, it will now attempt to
    reach out more widely to donors, the IFIs and the
    international community as it moves into implementation.  End
    Summary.

    ¶2. (U) During his November 18 presentation of the GSL's 2005
    proposed budget to parliament, Finance Minister Sarath
    Amunugama criticized the previous United National Party (UNP)
    Government's reforms as skewed against the rural poor and
    small and medium sized enterprises (SME's) and for having a
    heavy urban focus.  Amunugama claimed the United People's
    Freedom Alliance (UPFA) budget was a response to its election
    victory in April and had been widely consulted, taking input
    from over 1100 citizens.

    ¶3. (U) Anxiety had run high prior to the budget submission,
    particularly in the business community.  Most observers
    believed heavy new taxes, despite recently imposed revenue
    measures (Ref A), would be accompanied by significant new
    spending priorities, including increases in social welfare
    payments and subsidies.  In the end, however, the budget was
    less troubling to business than predicted.  Though there is a
    clear move toward greater import substitution policies and
    enhanced revenue collection, the budget also had targeted
    spending increases and an emphasis on the need to cut the
    budget deficit (projected to be 8.6% of GDP in 2004).

    Macroeconomic Projections
    -------------------------

    ¶4. (U) The UPFA's maiden budget aims to raise revenue from
    15.6% of GDP currently to 17.2% in 2005.  Its ultimate goal
    is revenues equivalent to approximately 19% of GDP.

    ¶5. (U) The previous GSL had made cutting the deficit a high
    priority and lowered the deficit from over 10% of GDP in
    2001, to a projected 7.6% in 2004.  2004's actual budget
    deficit is likely to be around 8.6% of GDP.  The current
    budget proposal aims to lower the deficit to 7.6% of GDP in
    2005 and to 4.4% by 2008.

    ¶6. (U) Current projections are that GDP will grow by 5 - 5.5%
    in 2004.  Inflation has been rising and the year-end rate is
    projected to exceed 7%, from around 6.3% in 2003.

    ¶7. (U) The current account deficit continues to put pressure
    on the rupee, as does the absence of World Bank and IMF
    budgetary assistance in the overall balance of payments.  Now
    that it has produced a "home grown" budget, without foreign
    assistance, the GSL has indicated it will begin discussions
    with the World Bank and IMF (Note: the budget relies on
    almost USD one billion in unspecified donor money for public
    investment projects. End note.).  Some local bank contacts
    have projected a continuing depreciation of the rupee to
    around Rs 110/US$.  The current rate is approximately Rs
    104/US$.

    Revenue
    -------

    ¶8. (U) The Value Added Tax (VAT) was widened to three tiers,
    from its current 15% rate.  The new rates are 5% for
    essential food items, e.g. sugar, lentils, potatos, onions,
    milk powder, vegetables; 15% for standard items and services,
    and 18% for luxury items, e.g. liquor, air conditioners,
    refrigerators, washing machines, televisions, cameras,
    jewelry and motor vehicles (other than three wheel "baby
    taxis" and passenger buses).  Certain imported inputs for the
    export sector, particularly the garment industry, will be
    exempt from VAT.

    ¶9. (U) The income tax structure was left largely unchanged,
    though the tax bands were widened and public sector employees
    will now be liable for income tax on half their gross income
    (any public sector employee found liable to pay taxes,
    however, will be given an equivalent tax allowance).  The
    base income level for tax liability was also increased from
    Rs 240,000 (approximately US$2,400) to Rs 300,000
    (approximately US$3,000) per year.

    ¶10. (U) The Economic Service Charge imposed by the previous
    government (a one percent tax on business turnover) was
    reduced to 0.5% for wholesale and retail trade, for both
    domestic and imported goods.

    ¶11. (U) The recently re-introduced 100% tax on land purchased
    by foreigners was left intact, though land to be used in the
    development of affordable housing projects, hospitals or
    large-scale public infrastructure will be exempt.

    ¶12. (U) Though corporate tax rates remain unchanged,
    corporate tax liability may rise, as numerous exemptions were
    removed or curtailed, including many standard deductions such
    as business expenses.  This provision has been the subject of
    the most criticism by the business community.

    ¶13. (U) "Sin taxes" were increased, including additional
    excise taxes on liquor and an increased levy on betting and
    gaming.

    ¶14. (U) A new tax on NGOs was established.  NGOs will be
    required to register with the Registrar of Companies and will
    be liable for a tax of 30% on 6% of funds received.  This tax
    will reportedly apply to all NGOs, except those working in
    the North and East, or on other projects approved by the
    Minister.

    ¶15. (U) The VAT and income tax charges on profits from the
    sales of stocks will be replaced by a new 0.2% transaction
    tax on share trading.  The tax will be assessed at the
    purchase and sale of shares.  The Government has also pledged
    to repeal the retroactivity of a tax on gains from the sale
    of Government securities.  The recently imposed tax had been
    retroactive to 2002 (Ref A).

    16 (U) While no specific target date was set, Minister
    Amunugama pledged that fuel subsidies would be "phased out."

    ¶17. (U) New fees were proposed on the export of cinnamon and
    ferrous or nonferrous metals in any form (including scrap),
    and on total turnover of small and medium-sized contractors
    (to help fund a construction guarantee fund to assist the
    construction industry).

    Tax Administration and Compliance Measures
    ------------------------------------------

    ¶18. (U) In an effort to improve revenue collection, the
    Minister proposed several reforms to the Inland Revenue
    Department, though all fell far short of the IMF and
    ADB-sponsored plans for a complete Department overhaul and
    consolidation of revenue authorities.  The mostly
    administrative changes proposed in the UPFA budget include:
    establishment of an appeals unit; implementation of a tax
    charter outlining taxpayer rights; efforts to collect
    information on tax evaders; a requirement that all refunds
    made by the Inland Revenue Department be cleared by a newly
    appointed committee within one week; and, new dedicated tax
    courts.  A Tax Ombudsman was also proposed to facilitate fair
    and expeditious settlement of grievances.

    ¶19. (U) With regard to tax compliance, the Minister noted
    that out of a working population of six million, only 200,000
    people pay taxes.  Several new measures to improve tax
    compliance will include withholding on certain large
    purchases, requirements that citizens who meet specified
    requirements with regard to credit card and utility bills
    open tax files, and a "gold card" for "honest taxpayers"
    which entitles bearers to special privileges (including a
    special lounge at the airport!).  Finally, a tax clearance
    certificate will be mandatory for bidding on government
    tenders.

    New Programs and Expenditures
    -----------------------------

    Public Sector:
    ¶20. (U) The UPFA promised public sector workers a 70% pay
    hike during its campaign.  The current budget proposal grants
    a 40% increase on current basic salaries to a maximum of Rs
    9,000 (US$90) per month, for lower rank employees the actual
    raise is equivalent to the 70% promised.  The increase will
    come over two years.  Public servants will also get a
    comprehensive medical insurance program, access to
    Government-guaranteed housing loans up to US$ 10,000 and at
    least two weeks of training each year.

    ¶21. (U) Surpassing its campaign pledge to hire 27,000
    unemployed graduates, the UPFA government actually hired
    42,000 graduates, who will now become "service oriented
    change agents."  The budget proposes an additional Rs 2.8
    billion (US$ 28 million) to place these 42,000 recent hires
    into permanent positions, and Rs 1.1 billion (US$ 11 million)
    to hire an additional 30,000 high school graduates into
    government positions.

    SME Bank:
    ¶22. (U) A cornerstone of the new budget is assistance to
    SMEs, primarily in the form of a newly constituted SME
    "bank."  The "bank" will be established with a capital base
    of Rs. 5 billion (US$ 50 million) and will provide direct
    funds, credit guarantees, equity and debt capital and
    restructuring aid.  Whether this will be a new bank or GSL
    program run through existing banks is yet unknown.  Mano
    Tittawella, Senior Economic Advisor to the President, told
    Econchief that the funds would be used to provide guarantees,
    primarily through existing banks, to help diffuse the risk
    faced by banks when lending to SMEs with little collateral.

    Infrastructure Development:
    ¶23. (U) New infrastructure programs proposed in the 2005
    budget include: a three-year accelerated infrastructure
    development program in the nation's two poorest districts; a
    village-level development program for two districts to
    provide minor irrigation schemes, feeder roads, basic health
    facilities and transportation services; low income housing
    units in the plantation and fishing areas; and a seven year
    tax exemption on income from rental houses of less than 1500
    square feet of floor area.

    Apparel Sector:
    ¶24. (U) With the final phase out of the Multi-Fiber Agreement
    in January 2005, the apparel sector was a focus of the new
    UPFA budget.  Assistance includes: Rs 600 million (US$ 6
    million) for guarantees from the newly established SME bank
    to provide working capital and investment; exemption from VAT
    payments on the import of textiles and ancillary inputs;
    VAT-free services from the Garment Buying Office; a grant of
    Rs 200 million (US$ 2 million) for productivity improvement;
    Rs 100 million (US$ one million) to improve local designer
    training programs to expand domestic inputs to the overall
    value chain; and, establishment of an apparel-related
    industrial park in a free trade zone near Colombo.  The new
    SME bank will also provide working capital to the developing
    textile industry and all textile requirements for government
    uniforms are to be procured locally.

    Local Software Development:
    ¶25. (U) The budget proposes 100% depreciation on locally
    developed software in the year of purchase.  The budget also
    stresses that the GSL will give priority to locally developed
    software in its software procurements (Note: several Sri
    Lankan software firms produce business application software.
    End Note.).  In cases where certain applications are not
    developed locally, additional benefits are available to firms
    who use local value addition for imported software.

    National Action Plan for Children:
    ¶26. (U) A fee of 0.25% will be assessed on certain taxes to
    suplement funds required to implement the National Action
    Plan for Children.  The Plan is designed to ensure universal
    access for child-development services.

    ¶27. (U) Other programs include:

    -- implementation of computer-linked resource centers in 320
    Divisional Secretariat areas,

    -- technical assistance for floricultural sector development,

    -- assistance to the dairy industry, with the goal of
    self-sufficiency in dairy production,

    -- assistance for organic product exports,

    -- development of the value-added cinnamon industry,

    -- incentives for the rubber industry,

    -- incentives for the foundry industry (fee on the export of
    ferrous metals outlined above),

    -- incentives for shrimp farming development,

    -- development of model farms for fruits and vegetables,

    -- employment creation and income generating projects for
    welfare recipients,

    -- an initiative for the revival of the construction industry
    (including a new Academy for Advanced Construction Training
    to meet the growing need for skilled labor),

    -- a housing loan scheme for returning overseas workers,

    -- new fuel subsidies for three-wheel "baby taxi" operators
    and assistance for converting existing three wheelers from
    gasoline to natural gas.

    Reactions to the Budget
    -----------------------

    ¶28. (U) Local reaction to the budget has been generally
    positive, with many business groups lauding the government
    for not raising taxes further than they did and urging the
    Government to remain vigilant on cutting the budget deficit.
    All major Chambers of Commerce have hailed the budget, though
    Sri Lanka's premier business organization, the Ceylon Chamber
    of Commerce, has called for the removal of provisions that
    reduce business tax deductions (Note: several economists have
    commented to us that the larger chambers are happy because
    their proposals for protection for member industries were
    adopted.  End note).

    ¶29. (SBU) Despite a budget that dramatically reverses many
    trends of the previous two years that were implemented by the
    UNP, reaction from the opposition has been largely muted.
    UNP complaints have largely been confined to a proposed
    requirement that an additional hour be added to the public
    sector work day in exchange for the pay raise (Note: news
    reports indicate that the GSL may make the extra hour
    "voluntary." End Note.).  The UNP may be feeling constrained
    in its ability to criticize given the populist nature of many
    of the budget provisions.

    Comment
    -------
    ¶30. (SBU) The 2005 budget proposal is receiving widespread
    praise primarily because it is not as bad as most people
    thought it would be.  The Government's coalition partner, the
    Marxist Janatha Vimukthi Peramuna (JVP), got increased
    funding for its constituent areas, particularly with the
    rural and SME development provisions.  Belying the emphasis
    on an increased Governmental role in the economy, the
    Minister's speech did pay lip service at least to the need
    for private sector partcipation in the economy.  The
    Government's revenue projections are optimistic and the
    Finance Secretary has called budget implementation "a
    challenge."

    ¶31. (SBU) Being less bad than expected is not what Sri Lanka
    needed in its budget.  The budget is an extension of the
    earlier Economic Policy Framework (EPF - Ref B) and continues
    to give the impression that the private sector is something
    akin to a necessary evil, while the Government must control
    the economy.

    ¶32. (SBU) Also worrying is the increase in protectionist
    sentiment and new tariffs.  The Government wants to benefit
    from trade through exports but, rather than allowing imports
    to foster competition and push productivity and efficiency,
    the GSL sees only markets overseas and at home.  A nation the
    size of Sri Lanka must utilize its comparative advantages
    that have driven growth for the past three years, such as
    continued focus on high-end, "niche" apparel markets,
    continued movement into IT back office operations and
    software development, focused development of export-quality
    agricultural products.

    ¶33. (SBU) During the recent TIFA talks in Washington, we
    understand the US side commented that Sri Lanka needs FDI
    (foreign direct investment) more than FTA (free trade
    agreement).  We concur, and are concerned that this budget
    does not provide sufficient incentive for foreign investors
    to take the risk of operating in Sri Lanka, and hobbles the
    local business community's ability to grow.

    ¶34. (SBU) The peace process remains an unknown.  A continued
    ceasefire and progress in a return to the negotiating table
    could be a net benefit for Sri Lanka in any investment
    equation.  Nonetheless, the GSL needs to complement the
    "peace front" with policies that attract investment and
    promote enhanced competitiveness.  The current budget
    proposal does not fit the bill.

    ¶35. (SBU) Nonetheless, the budget here, as everywhere, is a
    very political exercise, and tremendous emphasis was placed
    on producing a "home grown" budget, without foreign
    assistance.  There was also a need to produce something
    acceptable to the JVP faction in the coalition.  Now that
    that exercise is behind them, we hope the GSL will be willing
    to reach out more broadly, and seek input from donors and the
    international community.  Their approach to USG comments on
    their Millennium Challenge Account concept paper and possible
    upcoming meetings with the IMF and World Bank should help
    give an indication on this front.  End Comment.
    LUNSTEAD

`