Developing a new export culture

T.K.PREMADASA

The Business Community in Sri Lanka was highly pleased to witness the presentation of prestigious Presidential Export Award of the 17th Presidential Export Award Celebration held on September 9, 2008 at the Presidential Secretariat under the patronage of President Mahinda Rajapaksa and Prime Minister Ratnasiri Wickramanayaka.

It was a highly deserved tribute to the exporters for their exemplary record of performance displayed during the period over last few years. The Presentation of Presidential Export Awards featured a vivid renaissance for exporters to impel an innovative progression of their business activities.

Significantly, it is noteworthy that the reintroduction of this award in 2007 after a lapse of ten years has created a cultural novelty towards the development of export trade in the true context of Mahinada Chinthanya.

The Presidential Export Award is the highest prestigious award presented to the exporters by the nation in recognition of their outstanding achievements in the development of export trade. It is not only the symbol of national recognition of individuals and organizations excelled in export production particularly in non-traditional products and services, but also an incentive to explore their professionalism in the achievement of similar accomplishment in export trade.

The prestige of this award is the global recognition of the exporters of Sri Lankan identity similar to that of Queen’s Award presented in Great Britain. The selection of award winners was determined in evaluating the social and economic contribution made by the exporters towards export trade.

The criteria of suitability to receive this prestigious award was designed on the valuable information gathered from Queen’s Award in United Kingdom together with extraordinary support of generosity extended by the International Chamber of Commerce in Paris in 1981 and other relative institutions.

The reintroduction of the Presidential Export Award, introduced in 1981 and continued till 1995, has become a phenomenal success merely due to the unreserved recognition last year by the present Government in appreciation of the incredible entrepreneurial skills disported in export production opening new-fangled avenues of export culture. The contribution made by exports to the national economy was inestimable. In 2007 Sri Lanka earned US$ 7,700 million from exports at an increased rate of 12 per cent against 2006 with a 10 per cent average growth rate for the last five years.

In accordance with the available export information it is patently clear that nearly 4,628 exporters have contributed to export earnings last year. Obviously 23 exporters only have made their share of responsibility by 30% of the export value i.e. US$ 2,288 millions and 4,600 exporters have fulfilled their role of responsibility on the remaining US$ 5,366 million.

It is indicative that more exporters are making a higher contribution towards social and economic development by employing a large labour force with an immense social responsibility. The responsible role played by the exporters in the international market is not easy.

It is a Herculean task working hard beyond their boundaries in reaching the target. The nation owes a debt of gratitude to the exporters for their inspirational achievement in foreign exchange by professional competence despite tremendous challenges and barriers.

Since the majority of exports is being handled by a limited number of exporters, it would be advisable to monitor the transactions and earmark possible changes if any in order to ensure protection of the exporters, a national asset.

Lapses or shortcomings on the part of leading exporters due to reasons beyond their control might have an adverse effect on the national economy. Continued dialogue with the business community is vital at this point to help overcome the challenges ahead and also to extend assistance needed.

Prof. G.L.Peiris, the Minister of Export Development & International Trade took significant measures to recognise the potential of the leading exporters. During the last two years the Minister overwhelmed with massive contribution made, has expressed his appreciation to the exporters by presentation of awards.

We are delighted about the significant move taken by Minister Peiris to reintroduce the Presidential Export Award and implement the presentation of appreciation awards to five leading exporters. It is also encouraged by the example of the Minister to continue the dialogue with the export community to inspire advancement in export trade and offer protection by the Government.

These progressive measures will undoubtedly open avenues for a new export culture highly essential under the present global environment. Initially Sri Lanka was involved in the export trade even before the Christian era.

The evolution of the modern export economy came into light with the introduction of export crops on a commercial basis by cultivation of coffee in late 1830s in developing export economy. Since Independence too the economy was based on the three main items of export commodities such as tea, rubber and coconut and other minor export crops.

But this situation changed with the introduction of an open economy based on exports. This changed the entire socio economic pattern of Sri Lanka. New social classes in business field like SMEs play a major role in exports today.

The younger generation has now focused on seeking job opportunities in export trade and not government jobs like early days. It is this development that is vital for development of new export culture.

In the context of the incredible contribution made by the exporters against challenges in the global market, it is justifiable to honour them with social and national recognition as reputable personalities in society and create awareness of their invaluable importance as national assets. National acclaim will be a determined assurance for their overseas business counterparts to strengthen business transactions with giant personalities of reputation in the country of import.

Obviously, the exporters should be revitalized in honouring with presentation of Commercial Important People or CIP status with due recognition in the whole society. It will be advantageous to create awareness among younger generation of the prestigious importance of the professional export trade and insinuate them to be involved in the development of the economy.

The Universities in Sri Lanka should be encouraged by the example of the other International Universities enroled with professional academic curricula for the benefit of those skilled in particular professional fields. It is an accepted fact that the global market accelerates in its change especially due to the advanced technology.

It is required to extend support to build develop new strategies to overcome future market challenges. The development of an export culture will gradually expand with the new development of economy in the country.

The Eastern Province was liberated and a number of vital cities in the North are now under Government control. The capture of the entire Northern Province is imminent. The business community should be persuaded to open investment in the East utilising largely available opportunities for business in the limelight of the victorious end of the war in the province.

The Government may encourage the exporters to utilise all available means of resources for development of innovative products to compete with the international market and open investment constructively for a progressive uplift of the Northern and Eastern Provinces.

It is also important to create new exporters from the North and the East and revive the exporters of early 1980s in these areas covering products such as Beach de Mar, Palmyra products, Tobacco, natural mineral based products, agricultural products et al which contributed to our export earning in early 1980’s. More and more investment will solve unemployment in the region and earn profitable income as well.