The government will kick off an integrated promotional campaign, putting on hold the promotions for vital industries like tea and tourism as the state plans to invite 2400 factories to be relocated from China to Sri Lanka. There would be a “concerted and targeted” effort, International Trade and Development Minister Malik Samarawickrama said on the [...]

The Sunday Times Sri Lanka

Government in integrated promotions for Sri Lanka

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Hambantota Port

The government will kick off an integrated promotional campaign, putting on hold the promotions for vital industries like tea and tourism as the state plans to invite 2400 factories to be relocated from China to Sri Lanka.

There would be a “concerted and targeted” effort, International Trade and Development Minister Malik Samarawickrama said on the sidelines of a media briefing held in Colombo at the ministry.

He noted, “we want to do a (campaign for) a targeted audience and through an integrated programme” without having separate campaigns by different industries at various international trade fairs as part of the Prime Minister’s initiative.

This kind of campaign is likely to be carried out by the proposed development agency, which the minister explained would require “not just state sector officials but also private sector officials to run it.”

However, he asserted that having seen what happened with “super ministers like Basil (Rajapakse)” there would not be any super minister appointed as claimed by some government ministers from the SLFP and the joint opposition.  “China says that their production cost in South China is very high. They want to bring down factories here and carry out production,” the minister said.

The tourism industry and the tea industry have been awaiting funds allocated for promotional work to be used for a number of years that is still on hold.

Meanwhile, during the media briefing the minister noted that some of the 2400 factories in China would be relocated to Sri Lanka’s investment zones, some of which would be newly established. These would be brought down in three phases over a period of about five years.

The minister explained that Sri Lanka was cheaper compared to China in relation to worker payments as a result of which China wants to shift some of its factories here that are manufacturing plants for industries like light engineering.

These would be established in the special economic zones in Hambantota, Moneragala, Matara and Embilipitiya providing 90,000 direct jobs and about 400,000 indirect jobs.

Minister Samarawickrama said that the Hambantota port workers who recently initiated strike action were likely to be absorbed by the company after being interviewed and if they proved to be competent.

Vessels blocked by the port workers have complained that the stoppage cost them a loss of US$400,000.

However, the minister noted that, the vessel owners didn’t make a formal claim for compensation after the government had discussions with them.

Security at the port would be provided by the Sri Lanka Navy, Sri Lanka Police and the Sri Lanka Ports Authority, the minister said adding that however, the port would not be a military port but a commercial operation.

In January the government is set to commence operations with China at the Hambantota port as it is currently working out the concession agreement having already signed the framework agreement.

Due to lack of funds, the government is unable to take on the operations of the Hambantota port as a result of which they had to enter into a joint venture with the China Merchant Holdings, Minister Samarawickrama said.

The minister noted that due to a slump in global trade growth there was a possibility that the shipping industry would be adversely impacted.

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