Export Development Reward Scheme:

Association seeks state intervention

Sanjeevi JAYASURIYA

The Exporters’ Association Sri Lanka is in close dialogue with the authorities with regard to modification of the Export Development Reward Scheme to enable a larger cross section of the export sector to benefit. “There are many companies needing help, who are struggling to maintain their exports in the face of the adverse affects of the global economic downturn, Exporters Association of Sri Lanka Chairperson, Nirmali Samaratunga told Daily News Business.

“We need to support viable export companies with a scheme which will enable them to survive in these difficult times. Exporters need some sort of realistic stimulus for at least another year or two, to recover and face the global challenges, till global economic stability is achieved,” she said. Modification of the existing scheme or formulating a parallel scheme would need to address the qualifying criteria and be based on turnover for the period, whereby exporters could receive a percentage of the foreign exchange earned on exports, with perhaps a maximum limit. Weightage could also be given for value addition. Meanwhile the employment criteria need to be reviewed and have greater flexibility, she said. Our Association is in close touch with the Finance Ministry and has put forward some suggestions and is working on a more practical and viable scheme, which can also be implemented expeditiously, she said.

The Export Development Reward Scheme, formulated to assist exporters to face the global economic downturn is a timely initiative indicating the Government’s focus on the Export Sector, she said.

The scheme seeks to reward performing exporters thereby enabling them to explore new markets and maintain existing market share in the face of the recession, thus enhancing the export revenues of the country.

“The scheme focuses on those companies that have improved their performance over the previous year, and rewards their efforts,” she said. The key criteria considered in the Reward Scheme is achieving turnover at specified levels, as well as maintaining the same level of employment, as in the corresponding quarter of the previous year. Payments are made on a quarterly basis, and first and second quarters have been already disbursed to a great extent. It is understood that these will be completed in full shortly. We hope that applications for the third and fourth quarters will be called shortly, she said.

Meanwhile, applying for the Scheme involves much work for the exporter as it requires numerous supporting documents and certificates, as part of the application requirements.

“There have been long delays in processing applications which have prevented exporters from moving forward with their marketing and other expansion plans,” she said.