Stimulus package for value added exports

Uditha Kumarasinghe and Irangika Range

Exports Development and International Trade Minister Prof. G.L. Peiris told Parliament yesterday that the Cabinet of Ministers have approved an economic stimulus package to reward manufacturers engaged in value added exports managing their vulnerabilities and risks, despite the current global economic crisis.

The Export Development Reward Scheme (EDRS) has been introduced by the Government under this stimulus package to benefit the exporters.

The scheme is administrated by the Presidential Special Task Unit on Economic Development under the direction of President Mahinda Rajapaksa with the assistance of the relevant Government Institutions and the private sector to facilitate and provide a co-ordinated support to ensure that exporters sustain their exports and the level of employment in global trade amidst the prevailing crisis.

This scheme will assist export industries to secure their existing markets, penetrate new markets, establish and promote backward linkages, diversify and increase value addition, maintain the existing level of employment, compliance with environment regulations, quality standards and other best practices in exports.

The eligible exporters having satisfied the export performance at the end of each quarter of 2009 should submit their EDRS claims within 45 days to the Sri Lanka Export Development Board (SLEDB) with the relevant documents. The appointed steering committee will decide on these claims and if approved will inform the SLEDB to pay the claim immediately.

Exporters who submit their claims with a 100 per cent bank guarantee could get their rewards within 30 days.

The others will get their rewards only after approving the committee the recommendation. The Treasury will provide required funds to the SLEDB for this purpose.