Economic development should flow to village - Industrial Trade Minister

The economic development has to flow to village level to achieve an equitable income nationally, Export Development and International Trade Prof. G. L. Peiris said.

“The per capita income in Colombo is seven times higher than that of Moneragala, Polonnaruwa or any remote area,” the Minister said. President Mahinda Rajapaksa’s vision is to achieve an equitable income nationally,” he added.

The Minister made these observations at the inaugural ceremony of the Sri Lanka Footwear and Leather Fair 2007 exhibition at BMICH, recently.

“The footwear and leather industry has much potential today, which the apparel industry had two decades ago. We chose this industry for the most relevant criteria,” the Minister added.

The first ever footwear and leather goods exhibition was organised by the Export Development Board under the guidance of the Ministry of Export Development and International Trade, Ministry of Industrial Development, Industrial Development Board, Sri Lanka Footwear Association and Sri Lanka Small and Medium Footwear and Leather Goods Association. The exhibition had 150 stalls. Local and Foreign suppliers of raw materials, machinery and components also displayed their products.

The Minister observed that the Government aims to develop the ‘One Village - One product’ concept, brainchild of former Thai Premier, Thakshin Sinawathra, in the rural sector to ensure that development trickles down to the grassroots level.

The country last year earned US $ 39 million from the footwear and leatherwear industry with significant markets such as Italy, UK, Germany showing keen interest. “Sri Lanka exports 20 to 30 million pairs of shoes with value addition amounting to 40-50 per cent, generating ample job opportunities in rural areas,” the Minister said.

High profile companies such as Marks & Spencer, HHBrown and Dexter had shown interest in purchasing leather products made in Sri Lanka. He also noted that the Government had mapped out plans to ensure the continuity and extension of the GSP + scheme till 2011.

Industrial Development Minister Kumara Welgama said the Government had immense faith in the local footwear and leatherwear industry. They were formulating plans to expand and develop the industry aiming US $ 1.5 billion foreign exchange and generating 100,000 jobs in the rural sector by 2016.

“We have taken several decisions to develop and safeguard the industry such as the tax waiver for tanned leather and making preparations to develop a training centre for footwear and leatherwear to the likes of the Indian FDDI (Footwear Design and Development Institute) with funds from the Lankaputhra Bank. “The industry has moved to Asian countries.

We have gained tax exemption s not given to China and Vietnam,” the Minister said.

Chairman, Export Development Board Brian Angunawela, Secretary, Ministry of Industrial Development W. Guruge, Chairman of the Organising Committee Nimal Samarakkody and President of the Sri Lanka Footwear Association Chandralal de Silva also spoke.