Feature - Export Development Board at 44 - Down Memory Lane

 By Chandrakanthi Dharmadasa, formerly from the EDB

The title looks a bit common. But this is a story about an uncommon institute. The age 44 is where a person has achievements, yet having more years for more achievements. That is the Export Development Board, (EDB), now 44 years old, established by Act of Parliament in 1979, promulgated by Lalith Athulathmudali, then the Minister of Trade and Shipping.

The organiation was headed by a veteran international trade expert Victor Santiapillai.  Assisted by a Director General S. Kulatunga, an able administrator. He organised a team of experienced team of directors, mainly from the administrative service. The organisation is termed uncommon, because it flourished as the Minister did give priority to selecting the most suitable people for the job and left them to plan and decide on the course of action.

He followed this in selecting executives to the institution. All those seeking entry to executive grades had to face a final interview with the minister. Most of these young people were not even proficient in English as one may think it’s necessary to have a good knowledge of English to work in international trade. But he was able to realise the potential. Most of these young recruits have become highly qualified and accepted people in society here and overseas proving the insight of the minister.

When children grow up and achieve heights, parents are proud and glad but they do not and cannot keep on claiming they are responsible for moulding them. Almost all the flourishing export companies with big names benefited from the early assistance given by the EDB, though they may not be so eager to mention.

It was a time that many common exports today were unknown. Tea was exported in bulk, gems were exported uncut, unpolished, coconut exports were mainly oil. Items made of rubber were not known. Other countries made money adding value by processing our traditional exports. EDB schemes and assistance were aimed at adding value here and exporting to get more foreign exchange by exporting processed items. Coconut fibre and fibre products, charcoal, items made of rubber not bulk, tea bags not bulk soon became well known exports.

One of the first things the EDB did was providing a range of benefits and assistance to turn these traditional items into nontraditional form. A lapidary machine was imported and given out to gem processing companies to enable them to export cut and polished gems adding much value. Over the years almost all the big companies now have their own lapidary machines. A senior administrative officer G.A.S.Ganepola headed the programme of gems and jewellery. A lapidary training centre was established, enabling local companies to get experts. EDB participated in many international gem and jewellery shows, making the world know Sri Lanka is not only a producer of valuable gems but also an exporter of cut and polished gems.

Assistance was given to companies to get tea bagging machines. Sri Lanka now has many brands of tea bags which are in a position to compete with any brand in the world. Companies were encouraged to export items made of rubber instead of bulk. Well-known rubber gloves made in Sri Lanka soon got international recognition and many other items of rubber.

Duty free allowance was provided for import of raw material and machinery required for export production. This facility encouraged the garment industry to become competitive in the international market and soon to become the No 1 export of Sri Lanka. It is a common experience of many buying fine quality garments abroad, coming home to find the Made in Sri Lanka tag!!!

A scheme was initiated to rehabilitate ailing companies with export potential, under which several ailing companies were given back life.

The minister tried to inculcate these ideas of quality and quantity, starting from the younger generation through a series of lectures linked to Mahapola, for higher level school children. EDB and a few other institutions under the ministry participated in these seminars around the country.

A bimonthly Exporters forum was established where the exporters could bring up their problems. EDB coordinated collecting the presentations of exporters and inviting relevant state authorities which enabled the aggrieved exporters to find solutions on the spot. The Minister participated in each of these sessions.

EDB also took the initiative in establishing a National Packaging centre and actively participated in a Trade Facilitation committee, services necessary for export growth.

Another effort worthy of mention is the National Export Development plan, coordinating many ministries and institutions, made with great care through many committees and sessions with analysis of the different sectors and setting targets.

A novel experiment by the then Minister to divert the village entrepreneurs and raw materials for export was the Export Production Villages (EPV) which was legally incorporated with the Registrar of Companies. One of the biggest problems faced in developing exports was the difficulty in making people realise quality and quantity requirements of the export market. It was very difficult to make people realise they cannot just produce something and export just as they take their produce to the village fair. Both quantity and quality as well were important.

The export production village (EPV) concept though became very popular was not very clearly understood. In order to meet the quantity requirements the legal provision was made for an EPV to have a minimum of 50 shareholders. To meet the quality standards, the EPV’s were linked to an established export company. This reminds me of a very interesting anecdote. Once a group of producers of an EPV met the minister and complained their products were not bought by the linked company saying the quality standards were not met with. They had told the minister they are long time party loyalists. The minister had given a fine answer. He had told them if they are unable to meet the required standards, he will close the EPV. A great reply from a political leader which clearly explains how and why the EDB flourished.

The Export Development council of ministers (EDCM) which included the line ministries were over and above the board and it will be a great encouragement to the export sector, if this can be reactivated.

Media support in the formative years of the EDB must be mentioned. Rupavahini itself was in its infant stage. With the right understanding of exports as a national priority, TV, radio and the print media gave maximum support making news of exports almost daily. All those young people who supported now in their mature years are fondly remembered, though names are not mentioned.

Although 44 years are gone, the importance of export development as a national priority is still felt by all irrespective of party politics. Developing exports and harnessing all the untapped potential must go on with the help and assistance of all concerned Sri Lankans.