Govt will continue development despite challenges and constraints - President

The Government will not abandon the process of development in spite of various challenges including war expenditure and rising fuel import bills, President Mahinda Rajapaksa said yesterday.

Speaking at the opening of the MAS Fabric Park in Thulhiriya, President Rajapaksa said the Government was carrying out development work in all areas, with great investment.

“It is necessary that we obtain the assets for this, both from within the country and abroad. We have also prioritised the increasing of government revenue as well as increasing both local and foreign investment. After 10 years, this year Government revenue has reached 18% of the national income. That is a measure of our commitment,” he said.

The President said: “Forty years ago, Thulhiriya achieved fame as the location of the largest textile factory in all of Asia. That factory contributed to national industrial development as well as the development of this area.

That factory was privatized in the later half of 1980. From that time, through the past 20 years, not only was there a steady decline in this factory, a large number of workers too lost their employment, and the economic centre that was the key to the prosperity of this area was brought to destruction. So far, all governments since then have failed to re-develop this establishment and area.

When I contested the last presidential election this establishment had come to a collapse and all employees had lost their jobs.

We were able to obtain compensation amounting to around Rs 90 million for the workers. That money was an important investment towards improving the lives and livelihoods of the workers who live here. That money was provided by MAS Holdings that came forward to invest in this enterprise.

I wish to first express my gratitude to the Chairman and Board of Directors of MAS Holdings for their participation in social and economic development. The Garment Industry is the main industry in our country.

We obtain export earnings of US $ 3,000 million from it. In all, this industry provides direct and indirect employment to nearly one million people.

It is a core industry that functions in combination with a variety of other industries such as packaging and printing, as well as the ports and transport sector. Not only has it spread out into our villages, it has also directly impacted on the lives of our people.

It has become an industry that contributes to the national economy with a high level of value addition, by using machinery and other local services in addition to the skills of the workers.

In this regard, the commitment of MAS Holdings, together with the technologically advanced modern textile complex that is to be established here, with the arrangements for the use of local raw materials, is not only an important leap forward but also a step that increases expectations for the future economic development of the country.

The foreign earnings that stood at US $ 250 million have been increased threefold. Foreign reserves have exceeded US $ 2.7 billion. Unemployment has fallen by 6 per cent, and we have been able to keep the budget deficit below 8%. Our country now faces a major challenge. Just now the price of a barrel of oil exceeds US $ 85.

The import of oil to the country costs a sum as large as US $ 2400 million. At present the prices of food items such as milk powder and wheat flour have gone up rapidly in the international markets.

Although such items can be produced in this country, due to the systems and practices adopted through many years we now have to bear an enormous expense for them. As much as we need to reduce our dependence on imported fuel it is also necessary that despite whatever hardships, we also reduce our dependence on imported foodstuffs.

We decided to go ahead with the construction of the Norochcholai Coal Powered Power Project that had been delayed and set aside by successive governments, as well as the Kotmale Hydro Power Project.

By setting up such power stations we have been able to bring about a lasting solution to the crisis in electricity generation. Under the programme of “Let’s Grow, Let’s Build the Land” - the cultivation of all the rice, vegetables, fruits and grains that we can grow in our country is one of the principal goals in the Mahinda Chinthana Ten Year Vision.

We are not ready to set aside the development of the country.

We have given priority to the construction of power stations, highways, ports and airports, housing development, irrigation, rural infrastructure development, as well as education, health and other aspects of economic development.

Private companies such has MAS Holdings coming together with the Government to rebuild and revitalize enterprises that have failed after privatization, demonstrates well the expectations and trust such investors have placed in the development of the country.”