The country needs another six percent plus growth in the export sector to strengthen its economy further, Central Bank Governor Dr. Indrajit Coomaraswamy said.
Dr. Coomaraswamy made these remarks at the 20th AGM of the Exporters’ Association of Sri Lanka, held in Colombo. Internal Trade State Minister Sujeewa Senasinghe was also present.
Delivering the keynote address Dr. Coomaraswamy said the growth in the export sector is crucial for the future development and therefore the country’s exporters should achieve a significant improvement in this sector during the coming years.
He said even former President J.R. Jayewardene took measures to strengthen the export sector and Lankan exporters were able to achieve a 36.4 percent growth in 1977- and 72.2 percent growth in 1979.
He said Sri Lanka increased it exports 1.95 times in 2015, while Vietnam and Bangladesh increased exports by 11.2 times and 5.1 times respectively. South Korea and Thailand increased exports by 3.1 times.
Dr. Coomarawwamy also said that it is necessary for Sri Lankan exporters to focus attention towards value added products and more technologically advanced products, as such exports can create more jobs to Lankan youth.
He said 27 percent of the country’s work force have been leaving the country annually for employment in Korea, Middle East and Italy and if Sri Lanka can improve its export sector, youth can remain here to work for the country.
He said since Sri Lanka has a very close relationship with countries including Japan , china and Korea, the country could develop its export sector to the maximum.
“As Sri Lanka’s per capita income continues to rise, we can also increase our productivity using our services like tourism, transport and IT,”
Internal Trade State Minister Sujeewa Senasinghe said the policies of the Government has been admired by foreign countries and this situation has resulted in these countries investing in Sri Lanka and also commencing industrial zones and factories in many parts of the country .
He said many countries have already agreed to start factories and industrial zones at Hambantota, Moneragala, Galle, Maratra, Kalutara, Kandy, Kurunegala and also in the North and East.
The state minister also highlighted the setting up of a 20, 000 acre industrial park in Sri Lanka to start a Honda car factory and a wire factory.
“We also worked with Harvard University and they granted a five miilion US dollar fund and the ITC gave a fund of eight million Euros to improve our trade and economic policies,” he said.
The minister said he represented the exporters and investors forum and signed agreements with China, India, Pakistan, Malaysia, Thailand and Singapore to start business ventures.
“We also have planned to set up two cement factories, one oil refinery and one sugar refinery, “
Exporters’ Association of Sri Lanka , Chairman Harin de Silva highlighted the invaluable service rendered by Sri Lankan exporters and said the sector was neglected by authorities in the past.
He said due to this, the export sector declined year by year and need a strong political vision to drive it to reach its full potential.
“ With the BREXIT unraveling itself in the European Union (EU), Sri Lanka face with a unique challenge that will have a negative impact on realizing the GSP + benefits for sectors like the apparel as the UK accounts for 40 percent of Sri Lanka’s apparel exports into the EU,”.
Chairman de Silva further said the Government must now help to strengthen this sector to reap the benefits of GSP+.
He said the Export Development Board and the Foreign Ministry with the help of diplomatic missions overseas must help prospective exporters to find new markets and opportunities for Sri Lanka to re-enter the European Union (EU) based markets.
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