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| Monday, 19 July 2004 |
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Loans to other countries will help promote local products - Dr. Jayasundera by Shirajiv Sirimane Sri Lanka should set up a foreign bank to provide loans to other countries and thereby local products could find an easy market to these countries said Secretary, Ministry of Finance, Dr. D. P. Jayasundera. He was addressing a seminar organised by the National Chamber of Commerce Sri Lanka at Galadari. He said that Sri Lanka could provide loans to countries such as Bangladesh and in return Sri Lankan products can be sent to countries where the loans have been granted. The Secretary said that he is aware that there is a big difference between the lending and borrowing rates of banks. "This is totally unacceptable," he said. Most of the businessmen keep their good accounts with the private banks and have their risk accounts with the state banks. In addition to high interest rates the high cost of power casts an additional burden on industrialists. "As a concessionary measure the government has decided not to increase the power tariff for the industrial sector for some time. In the meantime the government would go ahead with the Kerawalapitiya power plant project and call for international tenders to construct more plants by private companies. Sri Lanka's economy is based on tea, garment and industrial exports and the potential in agriculture has not been tapped. Over 35 percent of fruits and vegetables perish while being transported and even the post harvest is being wasted since there are no storage facilities. The Western Province enjoys all the benefits and the per capita income in the province is around US $ 1,200 while in the other provinces such as Southern, Central and Gampaha it is around 600. However, in the other provinces this amount is less than 400 which is the income generated per capita in poor countries such as Laos. "There is something wrong in this system which needs urgent change," he said. The government has identified these problems and knows that solutions are needed to boost our economic policy. An economic committee has been already appointed to implement these proposals and they are working with the relevant line ministries. The Ministry of Tourism and the Apparel sector have already set up a cluster and they have also given us an action plan. "We are now in the process of forming a cluster each for the export and plantation sector," he said. Another area that has been overlooked is the road network. Sometimes it takes a container seven hours to get to Colombo from Matara while the same container can be shipped to several ports in India in less than four hours. Sri Lanka may be the only country talking of a high tourism yield and not having a highway or a express way to get to the city of Colombo. |
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