The government is urging businesses to increase productivity in order to advance Sri Lanka’s economy, suggesting that chambers become more business oriented and bring an end to negative criticism of the government. Addressing the National Chamber of Exporters (NCE) this week, Treasury Secretary P.B. Jayasundera advised exporters to focus on value-added products and to stop looking to the government for special tariffs and concessions. “That era is over,” he said. Dr. Jayasundera also spoke on the importance of increasing exports (US$7.5 billion) to match imports (US$11 billion) and recognizing that imports must be permitted into the country.
Exports must increase to match imports-PBJ |
He said Sri Lanka can increase its per capita income to US$5,000 or even US$6,000 from the current US$2,000 over the next five years, given the economic and political stability in the country. “Sri Lanka is ready to take off,” he said. There has been a massive infrastructure drive in terms of roads, ports and irrigation projects and Dr. Jayasundera said he is comfortable with the investments the government has lined up. By 2012 or 2013, approximately 95% of the population will have access to electricity.
Dr. Jayasundera said this falls in line with the President’s vision that every Sri Lankan must have adequate housing, electricity, clean drinking water, telecommunications, education and health. He added that the President is determined to pilot the nation to an economically advanced status. “Peace will create the growth story in Sri Lanka.”
Dr. Jayasundera said the Bank of Ceylon (BOC) and People’s Bank have taken initiatives to bring down exchange rates and increase credit. “Exporters and others are getting a good deal,” he said. Dr. Jayasundera added that since the government is not borrowing for war expenditure any longer, the BOC may lend at even lower rates.
Newly appointed President of the NCE Sarath De Silva said exporters are hoping that commercial banks voluntarily bring down lending rates until the industry commences rebuilding, re-establishing and expanding in order to reap the harvest instead of burdening the already difficult operations. He added that the government should explore the possibility of state banks jointly creating an export/import (EXIM) bank that can serve the sector. |
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