Sri Lanka industrial sector’s burning issues are not being addressed by the government and this has resulted in several industries shutting down and the owners taking to trading said, Chairman Achieve Awards, Steering Committee, Kevin Edwards.
Speaking at the launch of the 17th CNCI achiever awards, he said high taxes, escalating labour costs and other issues are pushing the production costs of businesses. “In addition several Indian companies are exploiting a lapse in the clause 16 of Board of Investment agreements and are setting up operations in Sri Lanka. These companies are selling their products in Sri Lanka using all the BOI tax incentives and benefits while local companies do not enjoy these benefits. Local industrialists want a level playing field and unfortunately the government is not creating it.”
He said that this negative trend was started by an Indian based shoe manufacturer operating from the Katunayake Export Processing Zone and today several such companies are capitalizing on this.
He said that the association and other stake holders have personally brought this matter up with President, Prime Minister, Finance Minister, Minister of International Trade and BOI but with no avail.
“Thought the government says that they support the local enterprises this lukewarm attitude of the government Sri Lanka is fact losing its competitive edge in businesses.”
He said that they also have mixed thought about the current FTA and proposed FTA agreements.
Secretary, Ministry of Industry and Commerce K.D.N. Ranjit Ashoka asked to comment said that the government is aware of these issues and they are working towards some solutions.
He also said the industries should also try to introduce more automation and also look at moving away from labour intensified industries.
The entries for the 17th CNCI achiever awards close of March 16 and more details could be obtained from cnci@slt.lk and applications could be downloaded from the cnci.lk web. This year too any company being in the business for four years could apply and even companies in SAARC region could apply.
The Print Media sponsor for the event again is Associated Newspapers of Ceylon Limited (Lake House)
DFCC to sponsor CNCI Awards
For the first time DFCC bank PLC has came forward to sponsor the Ceylon National Chamber of Industries (CNCI) 17th annual Achiever Awards event which would be held in Hotel Galadari on August 9.
CEO, DFCC Lakshman Silva said that the bank has been supporting the Sri Lankan industrial sector since their inception 63 years ago and some of the companies that were supported by DFCC today are leading corporates and exporters as well. “We are never afraid to fund industrialists,” he said.
“We will keep on supporting them and this is also the reason we came to sponsor 17th CNCI achiever awards which recognizes and honors industrial excellence of local enterprisers,” he said.
Asked why the lending rates are high in Sri Lanka he said that banks today offer high interest rates for deposits which is around 11 to 12% “The banks also have to offer better benefits for their shareholders and hence all banks have to increase lending rates.”
He however said DFCC bank has access to several overseas credit lines and loans offered by them to local enterprises bring better returns for investors.
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