Parliament

Small, medium industries backbone of economy - Minister Douglas Devananda

Parliamentary corrs

Speaker Chamal Rajapaksa presided yesterday when Parliament met at 9.30 a.m.

After the presentation of papers and oral questions the House took up the Committee Storage debate of the Appropriation Bill 2011 for the second date. The House took up the financial heads of Economic Development Ministry, Construction and Engineering Services, Housing and Common Amenities Ministry and Traditional Industries and Small Enterprises Development Ministry for debate.

Ravi Karunanayake (UNP): We have to design the future economic plan irrespective of political party differences. If the economy of the country goes bankrupt everything will end up in a mess.

There are 218 countries in the world Our country is not the only country in which foreign investors can invest.

Ours is not the only destination for tourists. The facilities provided to attract more foreign investors to Sri Lanka is inadequate.

I agree that the environment created for more large-scale investors is adequate. I think Government might have thought of the treacle down theory but we maintain that a conducive environment for other investors should be created. The number of Samurdhi recipients are on the increase.

Mervin Silva (Public Relations and Public Affairs Minister): Past Government has provided various concessions to the people which did not help them come out of poverty.

But under Mahinda Chintanaya the situation is different. The people are empowered and gradually people rise above the level of receiving Samurdhi relief. This process is conducted until poverty is alleviated from the country.

Douglas Devananda (Traditional Industries and Small Enterprise Development Minister): The Mahinda Chintana Vision for the future strongly emphasizes on the need for strengthening traditional and small, medium enterprises to enhance the income of the rural masses.

If also concentrates on creating self-employment opportunities and contribute towards increasing regional GDP and to reducing poverty and regional income disparities.

Small and Medium industries are considered as the backbone of our national economy.

Our attempt is to upgrade, expand and strengthen the traditional industries and small and Medium Enterprises and make them large, dynamic and vibrant economic sectors.

My ministry is actively involved in formulation of policies and implementation in areas in the handicraft sector, SMIs and SMEs, Elephant Pass Saltern, Palmyra Sector and Manufacturing of Fishnets. There are 17 industrial estates operating to provide space for small and medium size rural industries.

The Industrial Development Board provides technical know how.

Common Service Centers have been established to assist rural industrialists to and providing them market access.

My Ministry with the support of Industrial Development Board and National Crafts Council assesses and identifies the best performing industrialists and craftsmen. They are awarded with medals, cash prizes and certificates.

These industrialists are provided with concessionary credit facilities.

Laksman Yapa Abeywardena (Economic Development Deputy Minister): The Economic Development Ministry is established to accept the challenge of developing the economy of post conflict Sri Lanka.

Minister Basil Rajapaksa goes around the country to identify the facilities that should be developed to enhance the economy.

Now the Government has introduced a number of relief measures to boost the exports of finished products.

We sought out ways and means to improve the conditions of rural community.

By establishing the Samurdhi Authority we aimed to reduce poverty. In 1995, this rate was 30 percent. This was reduced to 18.5 percent in 2008. This rate is no 7.5 percent. We have given Rs 40,000 million as loans to people through Samurdhi. These loans have helped people overcome poverty by strengthening them economically.

We implemented a special program within the Tourist Industry during the past few years.

We have achieved a 43 percent growth this industry compared to last year. We hope that the number of tourists will rise to 0.6 million by this December. We have made income targets and expect a growth in tourism would boost employment opportunities. Tourism gives many indirect forms of employment.

Deputy Chairman of Committees Chandrakumar Murugesu takes the chair

Lakshman Yapa continues when tourists arrive in the country they must be attracted to various natural scenic places and cultural heritage sites.

We have now made arrangements to make tourists aware about our natural beauty and cultural values when they arrive at the airport.

Today the Newsweek magazine has also published positive reports about our country. Their previous reports on our country were not positive. Therefore, this is an achievement for us.

Vijayakala Maheswaran (UNP): The Government plans should be implemented without disturbing the people who have been residing in these regions for a long time.

Many institutions have come forward to invest in the North and the East areas. New apparel industries and commercial industries should be started. We are not invited to meetings regarding development in the North. We have become uninvitees. Even the President participated in some of those discussions. Schoolchildren are denied of the basic facilities and therefore some leave schools.

The Economic Development Ministry should take measures to improve the tourist industry in the North.

The Northern and the Eastern Provinces have very famous and scenic beaches. Now the Government has two-thirds majority and therefore they are easily provide a permanent solution to our problem.

Economic Development Deputy Minister Lakshman Yapa: I need to make a clarification. You said that you were not invited to meetings held in regions. But we have clearly given instructions through the District Secretaries to invite all relevant people. Minister Douglas Devananda said that you people are invited but do not attend the meetings.

Construction, Engineering Services, Housing and Common Amenities Deputy Minister Lasantha Alagiyawanna: When the per capita income is increased to USD 4,000, the President has given us a target to increase and improve the contribution of the construction sector to 11 percent.

It is true that an amount is not mentioned for those 50,000 houses to be built with the support of the Indian Government within the next 1 1/2 years.

That is why the President also mentioned not to look at the mere figures in this budget but to consider the direction that it leads the country.

The opposition’s conduct in this House is aimed at gaining political advantages. There is a doubt as to whether the Opposition is performing its duty today.

We do not reject the fact that people have problems and go through hard times. But we have strengthen their hand now than in the past. Their lives should be further improved and it is for this task we have now made plans and introduced various programs.

The Opposition says that the Cabinet is too large. But in reality a similar amount is being spent for an MP too. We think further facilities should be provided to MPs.

But the fact that a large sum of money is being spent on Ministers while the Opposition MPs are given less treatment is wrong.

A H M Azwer (UPFA): Point of order Sir. A member of this Parliament has gone to London and is making statements against the Government. This is against the State. We take action according to the Constitution.

Even Wickramabahu has joined in this. I request the Opposition Leader and the party to state their stand about this matter. Deputy Chairman of Committees: I will bring this matter to the notice of the Speaker.

Joseph Michael Perera (UNP): We do not know the accuracy of this story. It was published in the newspapers from what I heard this report is false. Let the Speaker decide on it.

Harsha De Silva (UNP): The newspapers have reported the inflation rate for the month of November. It has increased by 10 folds. I request the Government to make sure this digit is maintained as a single digit.

I also pointed out in my speech before about the situation in Venezuela under Hygo Chavez. He gradually took control of the economy by nationalizing private institutions.

I assume that it is better to call this as ‘Basil Chinthana’ than ‘Mahinda Chinthana’. The President has placed Basil in the driving seat in the economic war as he placed Gotabhaya in the driving seat in the previous war.

Either P B Jayasundara or Ajith Nivard Cabral may be the key implementor of the Minister Basil made a long speech in Parliament regarding budget.

Muthu Sivalingam (Economic Development Deputy Minister): The Government has allocated large sums of money to develop the infrastructure facilities in the North and East.

This will pave the way for the livelihood and spiritual development in the North and East aiming at poverty alleviation making these regions prosperous. The Government has already spent Rs 1,868 million, Rs 1,543 million, Rs 1,936 million and Rs 1,783 million Rs 1,986 million and Rs 2,573 to develop Ampara, Batticaloa, Trincomalee, Mulaitivu, Mannar and Killinochchi Districts respectively.

The basic requirements of the Northerners and Easterners have already been addressed.

The Indian Government has taken initiatives to fulfill the housing needs of the people in the North by constructing 56,000 houses. This is a very significant move.

Neranjan Wickramasinghe (UPFA): The Government has embarked on a massive development drive in the aftermath of the war. With the futuristic vision anticipated in the Mahinda Chinthnaya policy, we will be able to achieve the development goals in the coming years.

Rural areas are now witnessing a massive development drive.

All necessary facilities including infrastructure, electricity, water and transport are being provided to these areas. The President has very much realized the needs of the ordinary people.

As a result of massive development project, the livelihood of rural folk have been strengthened. The Government move to construct one million houses for the low income people is very important.

M A Sumanthiran (TNA): The country is now recovering after the elimination of terrorism. It is necessary to follow an efficient and effective development plan to rebuild the country. But we do not see any proper plan or economic and financial policies to take this country forward. The Government should handle the post war economic development and post war activities very carefully. It is necessary to improve the livelihood of the people at the same time developing the infrastructure facilities. Otherwise, the people will be frustrated. First of all the Government must provide the basic amenities to the people.

Dilum Amunugama (UPFA): Earlier the monetary allocation made for a Grama Seva Division was so minimal that roads or other projects cannot be completed.But under the Mahinda Chinthanaya that amount has been increased between Rs 1.5 to two million. As a result a large number of roads in rural areas in the 14,000 Grama Seva Divisions are being carpeted Rs 905.62 million along has been allocated for the Kandy District alone. Rs 46 million has been allocated for the Kandy Hotel School. All these development, were made as a result of the Economic Development Ministry.

Ranjith Soyza (UPFA): Today we see the light of development every week.

Even the footpaths in remote villages have been concreted under the Mahinda Chinthana vision.

To those Opposition members who criticize the budget as an empty program we invite you to come with us to the villages and the difference see how happily these villagers are living.

R Yogarajan (UNP); The allocation made from the decentralized budget is not adequate. The Indian Government is donating 50,000 houses and the Government promised to construct another 50,000 houses for the North and East.

But the facts in the documents are contradictory to the province of the grant of houses.

Weerakumara Dissanayake (Traditional Industries and Small Enterprises Development Deputy Minister): The Traditional Industries and Small Enterprise Development Minister is attempting to set up 200 large-scale enterprises and 5,000 medium-scale enterprises during the next five years while it is planned to assist a large amount of small industrialists to strengthen their economy.

We have allocated money to develop the palmyrah industry and kithul products. The Government has planned to attract a large number of tourists. The National Grafts Council and the Traditional Industries Ministry has implemented a program for rural industrialists to market their products for tourists.

The Government has allocated million of rupees for the implementation of this project.

Eran Wickramaratne (UNP): One of the reasons why we had to defeat the LTTE was because we had to guarantee the rights of the people. We learn that there is a program to relocated Colombo’s shanty dwellers under the city development program.

I urge the government not to remove these dwellers from their habitats when the city development program is implemented.

Basil Rajapaksa (Economic Development Minister): This is a myth concept you are attempting build. There are poor people who come from various areas to Colombo and living in shanties. We only plan to resettle those who only want to be resettled.

We are doing it according to the UN standards and we are obliged to guarantee that their rights are not violated. Even when the IDPs were resettled the Government first took them to their villages to visit those places and if they were resettled only if they wanted to be resettled. The Government always guaranteed that they were all resettled in their own villages.

Achala Jagoda (UPFA):

The Opposition has become confused over this Budget. They debate over the model of our economic policy. I would like to pay attention to the tourism industry. This is one of the industries which has a long history. Local and foreign tourism are both improving. Foreign tourism brings foreign exchange into our country.

Some say that local tourism does not bring any benefit to the country. But many jobs have been created by it.

This also helps to reduce inflation in the country. The gem, tea and rural industries are also connected with tourism. Today the demand for Sri Lankan gems has increased rapidly all over the world due to the Blue Saffire being used for a British Royal Wedding. We own an ocean which is 20 times the size of our country. But we have paid less attention to develop tourism in the coastal areas. I think more consideration should be given to this.

Dayasiri Jayasekara (UNP):

First I would like to pay attention to the Economic Development Ministry. We are happy that a talented and capable Minister such as Basil Rajapaksa is appointed as the Minister of this Ministry. We strongly hope that a strong economic strategy to Sri Lanka will be implemented under his guidance. We recognise him as a person who really attempts to do some work with great enthusiasm. According to Central Bank statistics about 32 percent of the population is receiving Samurdhi. This shows that the poverty rate in the country has increased. The promises given in the Mahinda Chinthanaya regarding Samurdhi beneficiaries are not fulfilled. The promised Rs 1,500 for three-wheel drivers have not been given after the election.

Shehan Semasinghe (UPFA):

This Budget is aimed at all segments of people. There is a clear growth in the tourist industry. When the war was raging a few tourists visited the country. Today this situation has changed. Today direct tourism marketing has started in the country to make this island a tourist paradise. Our target is 2.5 million tourists in 2016. This is a possible target. The only drawback is the challenge to provide them necessary facilities and accommodation.

For this task we are now improving the hotels and other accommodations to meet international standards. A large sum of money is allocated for the development of rural communities. These should be used for infrastructure de

velopment.

The budgetary proposals also include the livelihood development of the people and renovation of the irrigational sector. This is a people-friendly Government and it attempts to satisfy people’s needs.

P Ariyanethran (TNA):

The tourism industry was discussed. The people who can facilitate accommodation should be given financial assistance to promote tourism. Reptiles in large numbers were observed under the Kalladi bridge in the Batticaloa District three months prior to the 2004 tsunami. People had observed this as a strange phenomena. The same phenomenol was observed again and people were afraid if it was a forecast of a natural disaster to come. So, I request the Government to pay attention to this unnatural phenomena through the Disaster Management Centre.

Economic Development Minister Basil Rajapaksa:

We did not know about it until you mentioned just now. We will direct the attention of necessary authorities regarding this matter.

Shantha Bandara (UPFA): The aim of the Government is to empower the people. That is why Samurdhi relief is continuously provided to low income families. The Government has given priority for rural development. Infrastructure facilities are being improved in rural levels. Rs 10 million has been granted to each Grama Niladhari Division to uplift the living standard of the people. The resettlement process is being undertaken successfully in the North. Only 30,000 displaced people are to be resettled there. Once the de-mining process is over, they will be resettled.

Duminda Silva (UPFA): The Government takes all possible measure to ensure security despite the war is over. We do not want to see the ugly head of terrorism emerging again. That is why sufficient allocations were made for the Defence Ministry through this Budget.

The minimum price given to dairy farmers for a litre of milk has been increased to Rs 50. This move has encouraged them to stay in their livelihood. The Government has taken a number of measures to provide better livelihood for shanty dwellers. A new housing project has been started for the benefit of them.

Sunil Handunnetti (DNA): The Economic Development Ministry controls all other Ministries today. The highest amount of allocation was made to the Economic Development Ministry and only a small amount of money has been allocated to other Ministries. How can those Ministries function with such small allocation of funds?

Minister Basil Rajapaksa should allocate his duties and functions to other capable politicians.

The pledge to recruit graduates as Jana Sabha Secretaries through the last year Budget has not been fulfilled yet. The Government said that the economic growth rate has increased to 7.1 percent. If the economy was developed, how come 32 percent of the population are Samurdhi recipients?

Uditha Lokubandara takes the Chair

Buddhika Pathirana (UNP): I think if the rural industrialists like Laksha artists were given more attention, it would be better. There are photographers, videographers etc, such self-employees are very large in number. The attention paid to them is inadequate.

Social Services Minister, Felix Perera: Buddhika stated good points as well in his speech. The Economic Development Minister is playing a pivotal role in the economic development that is the reason that he has been appointed to look after a number of institutions.

The Economic Development Minister has made the Gampaha district get 100 percent electricity. During the last rainy season a considerable part of Gampaha district got inundated.

Although the Parliament complex went under water during this rainy season the Gampaha district was safe. The reason is that Minister Basil Rajapaksa is personally attending to the matter and directing to clear all canals and drain systems.

What I have to say is that today the country is on the proper track and we have reached a better economic development rate.

Vijitha Berugoda (UPFA): The Moneragala district was the most difficult area in the country. But when the need was brought to his notice, Minister Basil Rajapaksa took immediate measures to solve the problem of water, allocating Rs 114 million.

Earlier the youth protested saying 'Kolambata kiri apata kekiri'. The disparity of the distribution of benefits of development between city and rural areas.

But today there is a mechanism to rectify this disparity.

A H M Azwer takes the Chair.

V K Indika (UPFA): Minister Basil Rajapaksa has initiated the country's development drive by strengthening Provincial Development Committees and District Development Committees.

Sujeewa Senasinghe (UNP): The corruption of this Government is too much. At least half of the Moragahakanda reservoir is not completed. The contribution of the agriculture to the GDP has decreased from 20 percent to 12. Today we have a golden opportunity before us to develop this nation when the South Asian region is considered. If we miss this chance we will never get it as the Asian region is developing rapidly.

Victor Anthony (UPFA): Winning political challenges was not an easy task. Our Tamil community, Muslim community and even Sinhala community were in displaced camps at a time. The political leadership had to undergo critical challenges. If there is a hero who carried forward both an intensive warfare and economic development together, it is only President Mahinda Rajapaksa.

Today the roads in the country are being improved and new buildings are being constructed.

Development happens before our eyes today. The conscience of the Opposition members know the reality. Today the Opposition's duty is not properly done.

This Budget is aimed at a production-oriented economy. We aim to attain sustainable development through this Budget. It has a clear policy and foresees the future of the country. The Opposition opposes such a positive Budget.

Harin Fernando (UNP): A newspaper reported that a Minister said that 1 kg of B-onions can be bought at Rs 149 at Lak Sathosa outlets. I went to Lak Sathosa today and this was misleading.

Development should encompass spiritual development and human resource development. It is said that the per capita income is about USD 2,200 at present. But we see that the people in our villages do not earn that much of money. There is a huge gap between the haves and have nots. This is the reality.

Deputy Speaker Chandima Weerakkody takes the Chair.

Harin Fernando (continues): The Budget proposes to build a large number of houses over the country. But the housing requirements in the plantation areas is 155,000. But only about 8,000 houses are proposed for this region under this Budget. Our duty is to point out the mistakes of the Government. The Government should pay heed to our views too.

Construction, Engineering Services, Housing and Common Amenities Minister Wimal Weerawansa: Harsha MP asked what is the model of this economy. We did not follow any model in operating the humanitarian operation. We did it according to a Sri Lankan model. Our President does not import other models to our country but keeps faith on our own model. Today we have been able to create a new model for our economy and introduce this model to the world. After the war, many other countries started following our model in defeating the enemy. Our economic model may not be understood by comparing with other countries such as Europe or the USA. Sri Lanka is building up according to its own identity.

Economic Development Minister Basil Rajapaksa: I thanked both Government and Opposition members who actively participated in the debate. I expected the Opposition to speak on the headings of the Ministries taken for the third reading today. But most of them did not speak of anything of particular relevance to the assigned topic.

They just displayed their Opposition in general.

To members who spoke in relevance to the subject I expect to send them replies in the near future. We will take all possible measures to rebuild the country. We welcome suggestions of the Opposition to achieve this target. If their suggestions are in line with the Mahinda Chinthana, we are ready to accept and utilise them, when we launched the humanitarian operation, the latest technology helped us counter terrorism.

It is necessary to utilise computer technology to counter allegations levelled against us locally and internationally, I would like to relaunch the Ministry's website which is defunct now. My Ministry has carried out various development activities at rural level. Benefits of all projects should reach the people in rural areas. Most of the allocations made to the Ministry will be spent at rural level. Our next goal is to win the economic war within the next five years.

The House adjoined until 9.30 a.m. today.

Tourism growth steady

Parliament corr.

The tourism industry has recorded a 43 percent growth achieving the highest growth rate in the recent Sri Lankan history, Economic Development Deputy Minister Lakshman Yapa Abeywardena revealed at Parliament yesterday during the committee Stage of the Budget 2011.

He also noted that about 500,000 employment opportunities will emerge within a short period of six years due to the tourist industry. For every four tourists arrive in the country, one employment opportunity will be created for a Sri Lankan. This industry has the capability to provide jobs for all segments such as trained, untrained and semi-trained, he expressed.

These new employment opportunities are expected to rise in the fields of marketing, hotel management, event management, public relations, tourist guides, engineering, aviation sector and medicine etc.

The minister said that about seven percent of the population will be associated with the tourist industry within the next six years.

"Our aim is to achieve sustainable development in the tourist industry and to lay the foundation necessary for this task gradually," he said.

He further said that necessary measures to promote tourism have been taken in the country to achieve this aim.

Basil Rajapaksa, exemplary - Senasinghe

Parliament correspondents

Economic Development Minister Basil Rajapaksa was appreciated by Sujeewa Senasinghe MP for his enthusiasm over the subjects of his ministry and provision of answers to the question raised by the Opposition members in the Parliament.

Opposition member yesterday further stated that the Minister's behaviour of listening to the speeches by the Opposition and answering appropriately was exemplary to the young members in the House.

UNP MP made this observation joining the committee stage debate of the Appropriate Bill.

Opposition member further stated that although Minister was not the Finance Minister he had a clear understanding of the subject.

Azwer asks for inquiry on Heathrow incident

Parliament correspondents

UPFA Parliamentarian A H M Azwer yesterday requested at Parliament to investigate into an incident that a UNP Parliamentarian allegedly joined an LTTE protest against the Sri Lankan Government in London violating the Constitution.

Parliamentarian Azwer raising a Point of Order stated that when President Mahinda Rajapaksa arrived at the Heathrow Airport to make a historic speech at the Oxford Union, this member joined a pro LTTE demonstration and shouted slogans against the Government which is a clear violation of the Constitution.

Azwer also queried if this was the position of the UNP and its leader.

Deputy Speaker Chandima Weerakkody stated that he will take the matter up with the Speaker and give an order in due course.

Over Rs 200 m for computer literacy goal

Parliamentary Corrs

A sum of Rs 200 million has been allocated to achieve the target of 70 percent computer literacy rate under the Mahinda Chinthana Idiri Dekma, Education Minister Bandula Gunawardena told Parliament yesterday.

The Minister further said computer literacy which was at five percent has increased upto 35 percent by now.

The Government has taken several measures for the development of information technology and computer education in Sri Lanka during the last five years.

Under this program, computer labs have been established and developed in schools while teachers are trained on information and communication technology.

The Ministry has also carried out programs to establish Hardware and Network solution teams in schools while conducting annual computer maintenance workshops.

A special program is being implemented to distribute Nenasa television sets among students. The Minister further said in accordance with the present syllabus, the measure taken by the Government is sufficient and steps will be taken for the teaching of the subject on a broader level in the future.

The Minister said this in response to a question raised by Sajith Premadasa MP.