Sri Lanka can expand export base:

Developing processed food will help sectoral growth

Sanjeevi JAYASURIYA

A concerted effort is necessary to develop the processed food sector to reap the benefits of the current peaceful environment that would facilitate sectoral growth.

The sector could be a major contributor in the country’s economic growth and development, said Processed Food Development Initiative Chairman and Past President

National Agri Business Council and Sri Lanka Food Processors Association Mario de Alwis.

An initiative to widen the market access and find new markets is an important task as there are many emerging markets and the country has an opportunity to expand its export base. We need to focus on the supply base to promote a continued supply mechanism to ensure that the demand is met on time. State patronage is essential for the progress of the processed food sector and it would also be an advantage to the tourism industry, he said.

The country should position itself to brand Sri Lanka as a destination for processed foods and a joint marketing effort to strengthen public-private partnership is needed. However, politicization of the processed food sector at all levels and lack of transparency and polarization are the drawbacks it faces at present and steps should be taken to bring down the level of corruption.

We need human resources for the sector to develop and improve the standard and quality, he said.

The Government needs to streamline and revamp the regulatory system to meet the changing needs of the sector in today’s context. It is important to revise taxes and duties to encourage new players to the sector aiming at healthy competition and creating a conducive environment. The benefit of reduction of interest rates should also be given to this sector to bring down the cost of capital, he said.

Attention should be paid to improve the quantity and quality of processed food inputs to reach higher standards in meeting international demand.

It is vital to build our apex organization and be socially concerned and responsible.

The sector should be strengthened as it is of national importance, he said.

The Profoods/Propack 2010 was held last week as a launching pad to promote Sri Lanka’s processed food sector to make it the focal point. It aims at making the event more consumer friendly to attract market opportunities.