Daily News Online
SUNDAY OBSERVER - SILUMINA eMobile Adz    

Wednesday, 10 July 2013

Home

 | SHARE MARKET  | EXCHANGE RATE  | TRADING  | OTHER PUBLICATIONS   | ARCHIVES | 

dailynews
 ONLINE


OTHER PUBLICATIONS


OTHER LINKS

Marriage Proposals
Classified
Government Gazette

PARLIAMENT

Govt to increase foreign exchange from local products

Deputy Speaker Chandima Weerakkody presided when Parliament met at 1.00 pm yesterday. After the presentation of papers and oral questions, the House took up the regulations under the Imports and Exports (control) Act for debate.

Finance and Planning Deputy Minister and International Monetary corporation Senior Minister Dr. Sarath Amunugama:

I present the regulations under the Imports and Exports (control) Act for the approval of the House. The first order relates to the amendments to law with regard to cinnamon exports. The second order is to facilitate the changes needed for the Imports and Exports (control) Act to implement the amendments made to the Customs Act on a budgetary proposal.

When we consider the cinnamon cultivation, about 350,000 families are involved in the industry, especially in the South. About US $ 100 million of foreign exchange is earned by cinnamon exports. The government aims to increase the foreign exchange from local products.

Sri Lanka’s cinnamon is considered the world’s best cinnamon. We must be proud of this fact.

Another plant known as Kasiya has entered to the market as a low quality product replacing cinnamon.

We have to make sure that these types are not blended with our cinnamon, and that the quality of our cinnamon is maintained.

A request has been made to introduce a brand for cinnamon as for Ceylon tea. This amendment will provide for this request.

The other regulation we take up today relates to the Customs classifications that were amended recently. The imports should be controlled to support the endeavours to protect the ozone layer as we are a signatory to the Montreal protocol and the Vienna convention. Today’s amendments will provide for these needs as well.

Prime Minister D. M. Jayaratna:

We have to maintain the standards of our exports. Our fruits and other cultivations have been appreciated by many tourists. Our mangoes are tasty and tourists like them so much.

On the other hand, we import a large quantity of Aryurvedic medicine from India. Many varieties of them can be grown in Sri Lanka. We have to take measures to cultivate these herbal plants in Sri Lanka. We can save money spent on Aryurvedic imports if we can give sufficient attention to this sector.

Moreover, the jewellery of Sri Lanka is a global attraction. This industry has a great potential to be developed.

Uditha Lokubandara takes the Chair.

Dr. Harsha de Silva (UNP):

The Prime Minister spoke about small and medium scale entrepreneurs (SME) in Sri Lanka. Those sectors should be developed.

According to the statements of those in the SME sector, 25 percent of the SME factories had been closed during the last two years. The SME sector contributes to 75 percent of the GDP of Sri Lanka.

Today, the Rupee has been depreciated due to the weaknesses of the economic management. The debt burden has increased due to this situation.

Wildlife Conservation Minister Vijith Wijayamuni Zoysa:

Until 1977 we maintained a closed economy. But under the J. R. Jayawardena regime, the country was transformed into an open economy. This resulted in the widening gap between the US $ and the Rupee.

The government has placed confidence upon state investments. The public faith on the state sector. This can be seen in their interest on state sector employments.

The amendments will make sure that the local cinnamon products are not affected by Kasiya plant. The amendments will strengthen the country’s contribution to save the ozone layer. These are commendable moves.

The government has invested a huge amount for rural development, including the road network and infrastructure.

We have to promote value added products from cinnamon. The quality of cinnamon and tea should be ensured.

Last year, we cultivated 31,049 hectares of cinnamon and we have exported 14,435 metric tons. The target is to extend the cinnamon cultivation up to 50,000 hectares in 2020 and to reach the goal of 30,000 metric tons of exports.

Lakshman Kiriella (UNP):

There is a 50 percent drop in the export income of the country. Countries around us are finding more avenues to enter the global market. We are facing a difficult situation. Many garment factories have been closed. A large number of employees in them have lost their jobs. The government does not pay attention to these matters, instead it constructs airports, and highways, which the people did not ask for.

J R P Sooriyapperuma (UPFA):

Cinnamon of Sri Lanka was very significant. During the Pharaohs period in Egypt too, cinnamon was exported to Egypt. There are 42 spices in Sri Lanka and there are 63 in India. There are 110 all over the world that tastes food.

The government has encouraged the people to develop the coconut cultivation and home gardens.

Sajith Premadasa (UNP):

When we consider the economy of the country, it seems that all sectors have a drop during the first quarter of 2013 compared to that of last year. Exports, garments, services, banks, cargo handling have a drop in an increasing rate. The government cannot reach the expected economic development rate. The Export Development Board has become the biggest white elephant in the country.

Sudarshani Fernandopulle takes the Chair.

Rural Affair Senior Minister Athauda Seneviratne:

We have to take measures to develop marketing facilities for products. As a measure to protect our market for spices, this motion has been moved.

The world is a faced with the challenge of maintaining a market for their products as the global economy is facing a downturn. Our country cannot remain unaffected by developments in the global economic trends. Even under difficult situations, we have been able to reduce the unemployment rate, poverty etc. Kiriella said that the construction of harbours, airports etc on loans is not development that. What is it if it is not development? We do not take loans to buy food. The Opposition is jealous, for we are being given loans. The UNP wrote letters asking not to give us loans.

Health Deputy Minister Lalith Dissanayake:

We have been able to produce 17,165 metric tons of cinnamon in 2012 and 14,766 metric tons has been exported. We could bring in Rs 17,397 million as foreign exchange. It was a rapid increase from Rs 14,000 million in previous years. So this measure is a great support to the cinnamon industry

Eran Wickramaratne (UNP):

There were reasons for us that prevented the GSP plus facility in 2009. But now four years lapsed after the war.

However, around 400 garment factories were closed. Now we are in an era that we can get GSP plus to develop our garment industry.

Social Service Minister Feliex Perera:

Our cinnamon is the best in the world. We can cultivate cinnamon in Ja-Ela and Katane too. So we have to maintain the standard.

We have a surplus in rice as the government granted the fertilizer subsidy.

Ravi Karunanayake (UNP):

A large number of people are suffering from poverty. The dividends of peace are not enjoyed by people. The economic management is a crucial factor.

Let us understand reality and fight against the factors that contribute to the hunger of the people.

The number of garment factories have decreased.

A large number of workers have lost their jobs.

Investment promotion Minister Lakshman Yapa Abeywardena:

The number of garment factories have decreased due to the merger with other companies. Those have not been closed down. There is a scarcity of workers in garment factories.

The garments industry has a great potential with the issues in Bangladesh. We require more human power.

Ravi Karunanayake:

Forty eight percent of the debt, the country has obtained, is foreign debt with the depreciation of Rupee. The debt burden is rising. The value of one US $ which was Rs 123 last week, has increased to Rs 134 now.

The Central Bank has been politicized. The national economy is collapsing. Our exporters should compete with those of other countries and for that they must be provided facilities.

Janaka Bandara takes the Chair.

Udith Lokubandara (UPFA):

Sri Lanka has a global reputation over cinnamon cultivation. We have ideal climate conditions to cultivate cinnamon. Sri Lankan spices are world renowned. Today’s amendments will strengthen the cinnamon industry.

The government follows an indigenous thinking and vision set forth as Mahinda Chinthanaya.

It is based on local needs and values. The main promise of the initial Mahinda Chinthana Policy was fulfilled with the war victory.

Now, the second stage of the policy framework is being implemented in the country. Our prime intention is to build one Sri Lankan community. Reconciliation and unity of the Sri Lankans have been given priority.

A. H. M. Azwer (UPFA):

Before commencement of my speech, allow me to lodge our strong protest and condemnation of the bomb blast at Maha Bodhi in India. It was a scared site associated with the Buddha. The majority of Muslims around the world do not accept the attack on other religious sites.

The CHOGM is being organized in Sri Lanka after so many years of such an event in the country. But no Opposition member is speaking about the event.

At Adjournment

Sandasena Marasinghe and Disna Mudalige

Investment Promotion Minister Lakshman Yapa Abeywardena yesterday stated in Parliament that James Packer investment is not a casino business as claimed by some, but it is a mix project approved by the BOI which will bring US $ 350 million worth investment to the country.

He made this observation is response to an adjournment motion moved by UNP MP Ravi Karunanayake.

Ravi Karunanayake (UNP):

The government through the Investment Promotion Minister mentioned in Parliament that James Pakcer will be given tax holidays and also a licence to operate a casino. With the emergence of James Packer to invest US$ 350 million to open a casino in Sri Lanka, people have been querying the necessity and ethicality of such foreign owners running casino in Sri Lanka.

Since then the Finance Minister and the Cabinet Spokesman mentioned that no new licences will be given.

Curiously after my highlighting in the media, on June 28 the, Police raided the smallest casino operator and gave a wide publicity, whilst another big player having two casinos running in the same premises paying levy for only one is running the business unraided.

Investment Promotion Minister Lakshman Yapa Abeywardena:

This project which has been approved by the BOI is an investment of US $ 350. It will generate 2,600 direct employment opportunities in addition to a large number of indirect employment opportunities.

It is a mix project for tourism promotion which includes a luxury hotel complex with 400 rooms, retail shopping, entertainment facilities, restaurants, meeting and convention facilities. It is not a casino project. It has followed the due procedure under the Strategic Development Project Act.

It is under this government that this Act was enacted to seek the approval of Parliament in implementing large scale projects.

On a budgetary proposal of 2013, all betting and gaming companies were made compulsory to be registered with the Inland Revenue Department to be regulated.

The government has taken a policy decision to bring all betting and gaming companies scattered around the country to one specific tourism industry centered place. DR Wijewardena Mawatha near Beire lake has been identified as the suitable place for the purpose.

Four large scale mix development and tourism related projects have been approved in this area including Lotus Tower, Jumeira, JKH and Lake leisure.

The government has not given any new licence to casinos. The government’s target when approving mix development projects related with the tourism industry is to create direct foreign investment and employment opportunities and to encourage tourist arrivals.

The regulations were approved.

The House was adjourned until 1.00 pm today.

 

EMAIL |   PRINTABLE VIEW | FEEDBACK |

www.defence.lk
Donate Now | defence.lk
www.apiwenuwenapi.co.uk
LANKAPUVATH - National News Agency of Sri Lanka
www.army.lk
Telecommunications Regulatory Commission of Sri Lanka (TRCSL)
www.news.lk

| News | Editorial | Business | Features | Political | Security | Sport | World | Letters | Obituaries |

Produced by Lake House Copyright © 2013 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor