Export volume surpasses USD 8 billion in 2005:

Pro-business policies have boosted growth

BY Shirajiv Sirimane and Hiran H. Senewiratne

SRI LANKA has been able to record a considerable growth in every sector owing to adaptation of pro-business policies by the People's Alliance Government during the last decade, Minister of Ports and Aviation Mangala Samaraweera said.

"During this period Sri Lanka became a low middle income country in the region with a per capita income of US$ 1200 for a year," Minister Samaraweera told an open forum on "Mahinda Chinthana" vision statement of Prime Minister and Presidential candidate Mahinda Rajapakse on Wednesday.

He said that during this period the country's exports sector had improved and many export processing zones were set up in Seethawaka, Horana, Mirigama, Wathupitiwala and Mirjijawela in the country. During 1994 our exports were US 1 billion and in 2005 it increased upto US 8 billion, he said.

Minister Samaraweera said that the Government initiated bilateral negotiations to meet the challenging atmosphere with the end of Mulifibre Agreement, which the Government successfully faced that challenge with the signing of the European Union for GSP plus .

He also said that during this period the Government successfully signed free trade agreements with India which by and large have benefitted the country.

In the last decade the telecommunication sector, tourism sector recorded a dramatic improvement from 1994 to 2005, he said.

Meanwhile, Economic Advisor to the Prime Minister Ajith Nivard Cabraal said that it would cost over Rs. 4 billion if a Government decides to provide milk powder at a concessionary price.

He said that if powdered milk is issued at this price it would also lead to the collapse of the local milk industry while two companies would benefit. In India, the Government has been assisting the local diary industry and this has resulted in India exporting milk.

In addition the proposed Siya Saviya programme in the manifesto of the Leader of the Opposition would annually cost Rs. 54 billion. This is in contrast to the Rs. 9 million hand outs which are currently provided by the present Government.

The proposal to provide sprats and dhall is estimated to cost a further annual expense of Rs. 5.2 billion. Similarly other incentives are to be provided and he asked as to how the Leader of the Opposition was planning to raise the finances for these.

He said that in contrast, the total expenditure from the Prime Minister's Mahinda Chintana is very much less but covers a wider spectrum and provides more relief.

Cabraal also said that there is not a single country in recent times, which has maintained a GDP of 10 percent. In Sri Lanka the maximum that was achieved was 6.9 and currently the rate is 5.9.

He also stressed that they would not revert to an closed economy.