Wednesday, July 19, 2017

Apparel, fish exports to soar after GSP+ - Minister

Sri Lanka can get multiple benefits as a result of the lifting of the European fishing ban, said Minister of Development Strategies and International Trade, Malik Samarawickrama.

Speaking at the European Chamber of Commerce of Sri Lanka (ECCSL) and the Euroepan Union Delegation to Sri Lanka and Maldives organized conference titled ‘Sri Lanka - the Next Asian Economic Miracle?’, the Minister said that now is the time to exploit benefits from this fisheries expansion.

“The fisheries sector expects a substantial growth through the regained EU GSP+ facility. They expect that the demand for fisheries products would double the current export value, whilst employing sustainable and responsible fishing practices.”

“For January to May 2017, fisheries exports are up by over 40% compared to the same period last year. The industry plans to have new projects such as fish farming and deep sea fishing to increase production capacities to meet the increased demand from the EU envisaged through the GSP+.”

“Similarly considerable gains are expected through the exports in agriculture product categories such as fresh and processed vegetables and fruits, processed food including coconut-related products”, Minister said.

“Benefits of GSP+ status will need to trickle down to Sri Lanka’s rural workforce.”

“It is estimated that there will be an annual increase in apparel exports of US$ 500 million as a result of the GSP+ benefit creating approximately 20,000 jobs. It is now expected that more EU customers would change their sourcing strategy in favour of Sri Lanka in comparison with other duty free beneficiaries such as Bangladesh and Cambodia.”

“Given that Rules of Origin under GSP+ require fabric to be sourced from Sri Lanka or from an area that qualifies for regional cumulation in order to qualify for GSP+, there will be an increase in demand for fabric sourced from Sri Lankan fabric mills, rather than from countries such as China.”

“We have also set the ambitious task of jumping 40 places in the World Bank’s Ease of Doing Business Index by 2020 and are conscious that other countries are not remaining still.”

Minister of Finance and Mass Media Mangala Samaraweera said that the government is concentrating on several new areas to strengthen the economy and increasing tax revenue too would be a priority.

Minister Samaraweera also said that they are looking at relaxing some of tough and uncalled-for business regulations to simplify business.

“We will also being in more investor-friendly regulations soon.”

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