Sri Lanka’s export performance failed in past 2 decades : President
President Maithripala Sirisena, at a public event last week, strongly criticised Sri Lanka’s export performance over the past two decades saying one of the reasons is that local industry has been sidelined.
Addressing the opening of the 10th Annual Footwear and Leather Fair 2017 at the BMICH in Colombo, the President said exports has been deteriorating for the last two decades and successive governments during this period have not performed exports satisfactorily.
He said that governments for the last 15 to 20 years have not given its due place to the local industry in their national policies. However during the era of Sirimavo Bandaranaike and her husband S.W.R.D. Bandaranaike the position was different in that the local industry had flourished and there had been real improvement and identity.
He said that at a recent National Economic Forum he made a declaration that he would intervene and pressurise in matters connected to the local industry but such a comment has jolted some (political) quarters. But President Sirisena said that without such intervention the country cannot be developed to emerge out of its developing country status.
While the country should give more value to its resources, they should also have to be mindful of the place in which the country is in the export market which, according to him, is extremely unsatisfactory and special effort should be made to improve this situation.
He said that developed countries have strong export policies (linked to strong local industries) and thereby their asset value goes up and they have earned it through exports. This country too, he said must improve its exports while also strengthening, safeguarding and assisting the local industry to be more export oriented. Thus, he cautioned that he would as a principle not allow any foreign manufacturers here which seeks to release their products to the local market and interfere with local products.
He said he was prepared to listen to footwear and leather products manufacturers in their quest to improve the local industry and promote exports and would encourage, provide necessary resources and necessary tax reliefs which would also be extended to all local industries and agriculture.
He told the footwear industrialists that they should always utilise the local industry to augment the country’s economy. It is vital that the country’s resources should be properly managed and utilised to develop the country, he declared. He said that a proper management strategy of the local resources could alleviate poverty and eradicate economic difficulties.
In considering foreign investments, in no way will this affect the local industry, he said adding that he has given instructions to the Board of Investment to work within this framework.
Meanwhile, on the sidelines of the event, P.G.D. Wimalasiri, President, Sri Lanka Footwear and Leather Products Manufacturers Association, told the Business Times that the local footwear requirement is around 60 million pairs with a value of round Rs. 60 billion and an export market of about Rs. 115 million.
He said that though their industry is not earning a lot of foreign right now, it is one of the leading foreign exchange saving industries in the country. Due to certain loopholes in policies, he pointed out that big timers in the region could enter the local market by setting up factories for just US$ 2,500. If they are allowed to cater to the local market, the local footwear industry would be adversely affected as the industry is already saturated.
He pointed out that one such factory has already come up and pointed out that the local footwear manufacturers have no objection if these companies are exclusively catering to overseas markets.
He said that the association together with the Ministry of Industries and Commerce and the Sri Lanka Industrial Development Board are formulating some long-term development strategies to develop the footwear and leather products exports.