PARLIAMENT
Govt to increase foreign exchange from local products
Sandasen Marasinghe and Disna Mudalige
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.
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