Annual Report 2010 - Ministry of Finance and Planning

1 | DEVELOPMENT PERSPECTIVESChart: 1.43 > Investment in Science and Technology4000Rs. mn3000200010008021334178928333090248102005 2006 2007 2008 2009 2010Source: Department of National Budget Newly established Vidatha center at Maharawater security, health and wellbeingand mitigation and adaptation todisasters and climate change througha multidisciplinary approach. The”Mahinda Chintana Policy Framework”has recognized the need for improvingthe Research and Development sectorfor the rapid economic development ofthe country.The total investment in science andtechnology sector has been increasingduring the last six years period from2005-2010.In 2010, government invested Rs. 2,481million in the development of scienceand technology sector includingRs. 350 million for Nanotechnologyinitiative and Multipurpose GammaIrradiator Project which helpsincreasing the high technology exports.It has been planned to increase hightechnology exports from 1.5 percentto 10 percent of manufactured exportsby investing in the fields of electronics,IT, Telecom, Biotech and Nano techproducts.The Technology Transfer Programme(Vidatha Programme) is expected totransfer technology to the village level.The number of Vidatha Centers by2010 was 260. However, there are someconcerns whether the programmeis capable and efficient to meet thelocal and international technologicalchallenges. Having considered thechallenges, the government hasinitiated to re-orient the programmein order to improve its effectiveness atvillage level.IssuesThe major challenge in developmentof science and technology sector in SriLanka is the low number of researchand development scientists whichis around 4,600 at present. Worldaverage number of researchers permillion inhabitants is 894.1 and in SriLanka it is 237.3 researchers per millioninhabitants.A world class research facility eitherin the universities or in researchinstitutions has to be established inSri Lanka where cutting edge researchcan be carried out in any sector.Further, there was a decreasing trendof attraction of students to the sciencestream.A lack of entrepreneur supportiveresearch institution network toensure the protection of patent rightsof the entrepreneurs and providefinancial and technical support fornew entrepreneurs is one of thechallenges in the sector.Having identified the issues andimportance of the sector, Ministryof Technology and Research hasdeveloped Science, Technology andInnovation Strategy for Sri Lanka(2011-2015) in 2010 to address theabove issues. The key proposals ofthis strategy have been translatedinto action in the 2011 budgetyear. This includes increasing theprofessional allowances to universityacademic staff, medical professionalsand other specific professionalsbased on their professional andresearch specialties to 25 percentof their salary. In addition to this theresearch expenditure of companiesand enterprises or businesses willbe double deducted for the purposeof taxes to encourage companies toinvest more funds in research anddevelopment in terms of Section 25.1of Inland Revenue Act.90