Free trade agreements with other countries will boost the economy
Plans are afoot to set up giant industries such as LNG terminals, a cement plant and an oil refinery, two cement manufacturing factories and several other export zones in Sri Lanka with foreign collaboration soon, according to State Minister of International Trade, Sujeewa Senasinghe when he spoke to journalists at a briefing at the Department of Government Information at Narahenpita last week.
He said trade agreements with India, China, Malayasia and Singapore will be signed to attract foreign investment into the country. “The One Belt road initiative of the Chinese President Xi Jinping has put Sri Lanka in an important position because of its geographical location with regard to navigation and airline routes and (this) will attract foreign investors to the country,” he said adding that the main idea is to make Sri Lanka an export hub in the region although the country had been too dependent on tourism in the past neglecting vital manufacturing of goods such as electronic equipment for exports.
Referring to the garment industry, he said that measures will be further taken to uplift the industry to earn much more in the next 5-7 years. “We want to develop the boat industry and the electrical manufacturing industry, as well,” he said.
Meanwhile a new national export strategy will be formulated soon with the participation of more than 300 public-private sector bodies to boost exports from Sri Lanka following financial support from the European Council. A Task Force consisting of public and private sector officials will be entrusted with the job of creating an Export Forum in Sri Lanka. A batch of 40 persons have already being trained and another batch will soon be trained to spearhead the export drive in the country. The Ministry of International Trade plans to send such trained personnel abroad to lure foreign investors into the country. The development of a National Export policy will mainly focus on areas such as ICT, wellness tourism, spices, processed food and beverages and electrical machinery.
Asked whether an Exim bank will be set up in Sri Lanka, the Minister said the matter is being discussed and he was aware of the importance of setting up of such a bank for funding of small, medium and large scale enterprises. “We have funds for such a bank but need more funds to set up an Exim Bank.”
Chairperson/CEO of the Export Development Board Ms, Indira Malwatte said the public-pivate sector officials tasked with formulating the National Export Strategy will be able to identify constraints affecting Sri Lankan exports and FDI coming into Sri Lanka. “The National Export Strategy for Sri Lanka has been approved by the Cabinet. We have a closer co-operation with the EU as this was an EU funded programme,” she said.
European Ambassador in Sri Lanka Tung-Lai Margue said the National Export Strategy project for Sri Lanka funded by the EU was launched three months ago in the presence of Prime Minister Ranil Wickremasinghe.
“I am optimistic on the tangible results that will come out of this project.” He said the benefits of the project should trickle down to people at grass root levels and should not be confined to those at the top echelons of the society. The development of this strategy is a central component of the EU -Sri Lanka Trade-elated Assistance to increase trade competitiveness in the regional and EU markets.
President National Chamber of Exporters of Sri Lanka Ramal Jasinghe said this was the first time that the private sector had been included along with the state sector in such a project.