Unprecedented sums allocated for development of exports - Prof. G. L. Peiris

For the propagation and development of the export sector that is now increasingly becoming the centre piece of our economy Rs. 1,800 million has been allocated, said Minister of Export Development and International Trade Prof. G. L. Peiris. Speaking at a function held in Gampola to initiate a programme to cultivate foliage plants for export within the area coming under the Gampola Divisional Secretariat.

Prof. Peiris said that Rs. 1,000 million would be utilized to develop new markets while another Rs. 500 million is earmarked for the establishment of ‘agro-export’ zones, which is a new concept that is intended to connect the agricultural hinterland with the national export drive. Another Rs. 300 million would be spent on initiating export industries in the rural sector under the theme, ‘One village-one products.

Prof. Peiris said that already 25 villages from 9 zones have been selected for export-oriented development such as the Central Province, Gampola area which has been earmarked for cultivation of foliage plants while Kandy and Nuwara Eliya areas have been selected for vanilla cultivation and horticulture respectively. It is intended to upgrade the hand-craft industry in the Matale area and the manufacture of brass items in Pilimatalwa, with a view to offer them competitive advantage in the international market.

The Budget 2009 had provided funds for a gamut of activities that were directly linked to the export sector, such as incentives for enhanced agricultural production, related infrastructure development, promotion of new markets, establishment of a professional pricing policy, encouragement for exports etc. It has placed certain limitations on some imported items as an encouragement for local production.

“Though Sri Lanka seemed to have escaped, relatively unscathed, the effects of the presently unfolding global economic meltdown, it was very much essential for the country to expand and develop the local economy while diversifying it to include areas of economic activity that had been hitherto ignored,” Prof.

Pieris said. He also stressed the need to place much more emphasis on agricultural development as the climatic, soil and other conditions prevailing in Sri Lanka would help foster a rich and vibrant agricultural economy.

The Government has placed much importance on food security and energy conservation and with the related theme of import substitution. If Sri Lanka was not to be affected by the whims and fancies of the international market, then it would be necessary and prudent to concentrate on producing whatever that could be produced in this country.

Agriculture was one sphere, Minister stressed where Sri Lanka could be self-sufficient and even in the energy sector too, funds had been allocated for large-scale power projects in addition to 600 small power generators.

Prof. Peiris was confident that Sri Lanka had a determined population that would take on any challenge and it is necessary to formulate a clear programme of action in this regard.