Rewards to exporters for COVID-19 performance
View(s):The commendable performance of Sri Lankan exporters and the resilience shown during an unprecedented COVID 19 pandemic is to be rewarded by the Sri Lanka Export Development Board (EDB) of the Ministry of Trade, through a proposed export stimulus rewards scheme.
Exporters who managed the risk and the vulnerabilities despite the current global economic crisis would be encouraged by rewarding their achievements, the EDB said in a media release.
The EDB proposal was presented by the Minister of Trade, to the Export Development Council of Ministers (EDCM) on an Export Development Reward Scheme (EDRS) at its meeting held on September 23 under the leadership of President Gotabaya Rajapaksa.
The proposed scheme will be operative under two categories; covering SMEs and large exporters for consecutive two quarters starting from October 1, 2020 based on the export performance of the exporters. The main objective of the scheme is to encourage exporters to increase their volume of exports in future to be eligible to apply for the rewards.
The quantum of reward will be calculated based on the incremental export turnover of the particular quarter compared to the value earned year ago. Large scale exporters with an annual export turnover of over Rs. 750 million will be paid 2 per cent of the additional export earnings earned during the relevant period with respect to the corresponding period of the previous year while SME exporters get 3.5 per cent of the additional export earnings earned during the relevant period with respect to the corresponding period of the previous year.
The implementation of this scheme is expected to generate an additional export income of US$600 million during the period of October 1, 2020 to March 31, 2021.
“Although the government is doing its utmost to alleviate the hardships faced by exporters, they have been adversely hit by the cancellation of orders and declining product demands. However, the exporters are diversifying their production lines grabbing new emerging opportunities due to COVID-19 while some other companies are diversifying markets to avoid the uncertainties. Such positive changes can make a progressive difference in the country’s export earnings,” the EDB said.
The EDB said it was of the view, that in spite of the difficulties due to the global economic downturn, the positive contribution made by the exporters to the Sri Lankan economy should be appreciated. This proposed rewards scheme will encourage export industries to secure existing markets, penetrate new markets, establish and promote backward linkages, and diversify into new products according to the existing demand created through COVID-19.