Market for handicraft and small industries

Speech by Minister of Traditional Industries and Small Enterprise Development Douglas Devananda

Mahinda Chinthana, the vision for the future embodied in the Election Manifesto of President Mahinda Rajapaksa promised to transform Sri Lanka into the "Emerging Wonder of Asia." The Government has managed many challenges both manmade and natural and made successful progress. Almost three decades of conflict has been brought to an end. Similarly, the tsunami-affected areas in the costal belt have been developed. We were even able to withstand the global financial and economic crisis.

The Government has given priority to infrastructure development initiatives with a special focus on developing energy sources, seaports, airports, express ways, road networks, bridges, new irrigation schemes, water supply projects, etc. Similarly high importance has been given to Education, Health and Rural Economic Development. Despite many challenges, the Budget Deficit has been maintained at 8% of the GDP, which is commendable and the IMF has extended its support.

The country has graduated to a middle -income country and the per capita income has increased from US$ 1062 in 2004 to US$ 2053 in 2009 an achievement that we can be proud of. Our average economic growth has been increased to 6% in the past 5 years. In the first quarter of 2010 the economic growth rate was recorded at 7.1%. Unemployment has been brought down to 5%. Poverty levels have declined from 23% to 15%. These are commendable achievements despite the natural and manmade challenges the country faced. The Tourism sector has been picking up very fast and is an indicator that reflects economic achievements.

The projected economic growth of 7% for the year is on par with the economic development for the fiscal year 2008/09 of India, the third largest economy in Asia. The LTTE was defeated by the Government and the Government's fiscal policies have stimulated the economic growth.

As a Minister of Traditional Industries and Small Enterprise Development, my Ministry will paly a leading role in the country's development by mobilizing small entrepreneurs engaged in traditional industries, the handicrafts sector, and small industries and enterprises scattered all over the island. These engagements will contribute to the Mahinda Chinthana vision of transforming Sri Lanka into the "Emerging Wonder of Asia."

My Ministry will work towards bringing traditional industries from the war affected areas in line with the rest of the country's enterprises. In this regard, a medium term Results Focused Strategic Plan is being prepared by the Ministry. The SME, Industrial Development Board, National Craft Council, National Design Centre, Palmyra Development Board, Elephant Pass and Kurinjativu Salterns, and North Sea Ltd. come under the purview of my Ministry.

My Ministry will play a significant role by supporting in the transfer of technology to the rural industrialists and handicraftsmen; introduce innovative designs to enhance competitiveness in the market; provision opportunities to run trade fairs at provincial and national levels to find market opportunities to promote handicraft and small industries; transfer technical, managerial and entrepreneurial skills and training to small medium enterprises; and streamline the availability of credit; provide quality raw material and equipment to support the SMIs and SMEs scattered all over the island.

Moreover, the 2010 Implementation Plan includes the reactivation of the Elephant Pass and Kurinchativu Salterns which will be able to achieve a national salt production level of at least 60,000 to 80,000 Mt. in the medium term and provide employment opportunities to 2000 people. These salterns will commence operation as soon as the demining activities in and around them are completed.

Further, the Palmyra Sector, which comes under the purview of my Ministry, is also very important. We have proposed to develop this as a dynamic and vibrant sector with a focus on new planting, expanding the 'Katpagam' sales outlets islandwide, enhancing the production of Palmyra handicrafts, and increasing sap, pulp, soft drink, and jaggery, production. We have also proposed to re-establish the Kaithady Research Institute, and to relocate the Head Office of the Palmyra Development Board in Jaffna in line with the incorporation Act and to enhance the living standards of those dependent on this sector.

The Annual Implementation Plan for 2010 along with other nation-wide initiatives includes the conduct of the Shilpa National Exhibition, National Award Ceremony for Handicraftsmen and Small Industrialists, Kitul Production Program, Development of Craft Villages, Industrial Estate in Atchchuveli, Jaffna, improvements to Polonnaruwa and Badulla Lakkam Sales Centres, establishment of Lakkam Sales Centres in the Northern and eastern provinces and Common Service Centres.

My Ministry will work closely with other line Ministries, Provincial Councils, Federations of Chambers of Commerce and Industries, Private Sector and other Development Partners to fulfil the achievement of its mission.

President Mahinda Rajapaksa repeatedly states that "peace without development" or "development without peace" is not sustainable.

With the Liberation of the Eastern province the Government embarked on a "development drive" for the province. Now the Government's focus has been on the Northern Province, to prioritize demining operations and complete the resettlement of people. This year, Government has a priority target to complete all demining operations, to resettle all IDPs, and to ensure their quality of life.

The resettled people will be given all necessary assistance for restart their lives. My Ministry is very committed to assisting in this regard.

The reopening of A9 road, removal of restrictions on fishing, the openings of bank branches, and unrestricted transportation have expedited business development in the North and East. Assessments are being carried out to identify fully and partially damaged houses, buildings, hospitals, court houses, bus stands, market places, etc. to implement an accelerated rehabilitation program.

Following the President's visit to India with a delegation including myself, I am pleased and wish to appreciate the generous support extended by the Government of India for building 50,000 houses in the Northern Province. Also, the blueprint for construction of railway lines in the North has been finalized. A comprehensive medium and long-term plan is being formulated to transform the conflict affected areas and to improve living conditions.

The recurrent expenditure of my Ministry for the year is Rs 493 million as against the capital expenditure of Rs 194 million. However, I will assure that the people of this country will get the maximum benefit for every cent spent by my Ministry.