Small industry chamber meets Prof. Peiris

A delegation from the Chamber of Small Industry led by its President Aloy Jayawardene, recently met Prof. G.L.Peiris, Minister of Export Development and International Trade, and presented proposals for the development of exports in the small and medium sector.

Presenting the proposal, Jayawardene referred to the Indo Sri Lanka Free Trade Agreement (FTA). With the implementation of the FTA, India emerged as the largest supplier of Sri Lanka’s imports since 2001.

Similarly, exports to India, as a percentage of total exports have expanded, according to a chamber press release.

It referred to the imposition of discriminatory sales tax on Sri Lanka imports by Indian state governments, which considerably offsets some of the duty preference of Sri Lankan exporters.

Indian state governments have imposed high import duty on products coming from abroad. “It’s impossible for us to change the tax systems of Indian state governments, which has been imposed to protect their local manufacturers. On the other hand why should we allow foreign manufacturers to enter our territory compete, and kill our local industries.

It is pathetic to note that one by one our local industries are closing or gradually slowing down their manufacturing activities and giving in to foreign manufacturers. Sri Lankan manufacturers who already had a local market share have now realized that it is more profitable for them to import and sell rather than getting involved in the process of manufacture,” the statement said.

It said the minister accepted the chamber’s proposals but pointed out the financial constraints faced by government.

Prof. Peiris said he would discuss this with the Treasury Secretary and see what could be implemented.