Financial Times

Showcase local brands at airport, tourist hotels-Treasury chief urges
The country’s top treasury official made a significant comment last week which is what Sri Lanka’s manufacturing industry has been complaining about – lack of exposure for internationally-accepted local brands.

Dr. P. B. Jayasundera, Treasury Secretary, said while globally accepted Sri Lankan branded products are known in other countries such brands are neither displayed at the Colombo International Airport nor in major tourist hotels in this country.

Speaking on the topic “Mahinda Chithana and Private Sector” at a recent forum organised by the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), he said he has seen many Sri Lankan products in foreign countries such as Dilmah Tea and Kandos chocolate which are well established.

He said Sri Lanka is in the furniture business in the international market with Damro and even chicken from Maxies. Dr Jayasundera said, today the country is discussing a new development strategy under a new leadership and thus it was appropriate to review the economy at the present trend and what has been achieved over the last few years and in that backdrop to discuss the ‘Mahinda Chinthana’ and the role of the private sector.

He said the private sector has been extremely supportive during 2005 and the statistics indicate the economy has seen 6 percent growth despite a disastrous start with a devastating tsunami with 40,000 lives alone lost and millions of people displaced which affected livelihoods and business. Ninety percent of the fisheries resources were lost. The economic loss has been equivalent to 1.5 percent of the GDP. Further the major challenge to the economy was the high prices of oil, a barrel reaching $60.

As a result during 2005, $500 million extra on oil was spent against 2004 costs. After the garment quota system was withdrawn, the local apparel sector despite stiff competition from other exporting countries has registered 3 percent growth.

He said with the current policy developing, the government is planning an overall policy framework for the medium and long term strategies inclusive of Mahinda Chinthana as a vision for the future and to achieve 8 percent growth over the 6 percent growth in 2005. In order to achieve the eight percent growth envisaged in the Mahinda Chinthana, constraints the private sector would encounter are inadequate infrastructure which is somewhat being tackled.

Dr Jayasundera said there are new openings for Sri Lankans working overseas and through their investments they expect to raise $ 60 million. There would also be investment projects for water, sanitation, hospitals and schools.

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