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Minister of Enterprise Development, Industrial Policy and Investment Promotion and Minister of Constitutional Affairs Prof. G. L. Peiris called upon all chambers of commerce and their representatives to a forum to discuss the proposed re-organisation of the ministry. The need for this according to the minister is due to existing structures of the ministry being somewhat archaic and not brought in line with contemporary requirements. The basic idea is that the ministry should be a service organisation, the minister said.

Reorganisation of the ministry is proposed with technical assistance from the USA and UNIDO and officials of the Ministry. The Minister requested the ideas and thinking of all present on the proposed basic structure, sectoral arrangement and problems identified in each of the sectors proposed.

The Chamber of Commerce and Industry, SLEDB, Federation of the Chambers of Commerce and Industry, NCC, Wayamba Chambers, Ceylon National Chamber of Industry, Exporters Association of Sri Lanka, Ceylon Chambers of Commerce, their representatives, Secretary to the Ministry and other ministry officials participated.

The proposed organisational chart of the ministry showed divisions such as Macro Policy, Industrial Policy, Entrepreneur Development, SMI with much emphasis on sectoral plans of which activities are divided into 15 major sectors such as rubber, ceramics, coir, ICT, leather, leather products and shoes, apparel, handlooms and textiles, food and food processing, gem and jewellery, plastics, handlooms, spices, tea, metal fabrication and packaging sector, headed by chairmen of the relevant sectors of the private sector with officials of the ministry as secretaries.

The minister invited the perceptions of the present state of their industries, forward-looking strategy, SWOT analysis, the government's intercession recommended, depending on which the ministry will decide on the most practical and efficient input the ministry can make into these sectors. The three main institutions will be the BOI, EDB and IDB, now under the direction of one ministry for easy coordination.

The minister said that after the budgetary meetings are over in Parliament on Thursday, the minister would be on a visit to the USA, UK and India. On his return the Minister hopes to have a preliminary meeting with USAID and chairman of these committees. The issues of each sector are qualitatively different, the minister said with value addition and branding being something to be looked at seriously if we are not to be left behind. e.g. tea; the main problem is value addition in a striking contrast with rubber where value addition had been long resorted to. Gem and jewellery, needs a scientific procedure for certification. USAID will help in this aspect. The leather sector has a critical problem with the tariff structure, due to which assembling in this country is not viable. There is a need for a Tariff Commission with substantial input from industrialists.

Discussions are necessary here with Brittonwoods Institution the Minister said. With brass, it is a question of technology in which regard Indian technology is infinitely superior. The reports submitted by each of the sectors, where the private sector will play a dominant and pioneering role, should bring out all these issues.

The Minister said that "Where the apparel sector is concerned, there is considerable feeling in the USA about the situation in Sri Lanka and this is the psychological moment when we can derive the maximum benefit from the positive relationship." It was also highlighted that Sri Lanka is the only South Asian country seriously considered by the USA for a Free Trade Agreement.

Substantial tariff concessions are hoped to be obtained with raw material brought in from the USA, in order to avoid objection from other US counterparts. The services of the full time lobbyist is found useful here for negotiations as quota is a matter to be discussed with the US administration, and tariff is a matter for Congress. The minister will be discussing tariffs, quotas whilst in the USA, briefing the US on the peace process and also the Indian Foreign Minister on his way back.

Through the sectoral arrangements the Minister expects the ministry system to be fed with the insights, perceptions, and priorities as considered by each sector. The format of the sectoral report to be submitted by the sectors has been formatted in uniformity, so that it will provide all this information for the Ministry to make its final decisions. The efforts of USAID and UNIDO with Lalith Gonetilleke from Vienna visiting Sri Lanka many times with technical support was very much appreciated by the minister.

The minister thanked the private sector for their effort to pay the salaries of officials released by them in to the ministry, which is considered very useful for the kind of cross-pollination and interaction.

The minister said that the final objective is to achieve something substantial. The fullest benefit of the collective experience of those present is expected by the Ministry in designing the practical programs for the ministry, which is most critical in achieving economic development in our country at present.

Secretary to the Ministry Ranjit Fernando explained further the vision of the Ministry as it should play a role of a facilitator or a catalyst for the industrial sector to be robust and competitive in the next five years, in a globally competitive environment. It is expected to have a continuous dialogue with industrialists and the public, by which strategies for development and changes to policies will be formulated. e.g. Corporations will be turned around or privatised. The ministry will be a spokesman for the industries in the government in changing the environment to be one conducive to the sectors. It is proposed to have a board formed with representatives of the Chambers for follow up activity and accountability, Mr. Fernando said.

The minister said that Section 17 of the BOI law allowing tax incentives was done away with from March 31. After discussions with Mr. Choksy two paragraphs were included in the budget, the effect of which is that there would be similar concessions for pioneering industries instead, which would mitigate the harsh impact of withdrawal of fiscal and monetary incentives within the framework of section 17 of the BOI law.

Infrastructure was discussed as very important to achieve these objectives. The Minister said that in Korea the network of roads is very impressive which is the secret of the Korean economic miracle. Where infrastructure and other matters are concerned there are inter-ministerial committees discussing major issues.

The Minister informed that the long awaited five industrial and investment zones, a concept of Prime Minister Ranil Wickremesinghe will be set up to give more creativity to people of the relevant areas. This will also help address most of the issues brought up at the forum by Chambers representing at provincial levels.

The minister thanked all present for their genuine cooperation in working towards the prosperity of the country.

The participants said that the whole country is now behind the government. It was also appreciated by the Chambers represented that this was the first time that the Ministry gave greater focus to the local industrial sector. There were suggestions from the floor to include small and medium scale entrepreneurs to obtain first hand information of the rural set up for the Chambers to unite and be supportive in achieving their objectives; importance of branding; research component to be looked into with possible funding; if possible the ministry to be represented on the Monetary Board; introduce speed in the implementation process; look into the implementation of budget proposals; relief to small scale entrepreneurs by way of higher purchase schemes with regard to machinery, to facilitate rural entrepreneurs by having a ministry web-site.

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