Exim Bank to invest US$ 365m in Hambantota Port

Ramani Kangaraarachchi

The Exim Bank of China will invest US$ 365 million in the Hambantota Port construction project.

As the Government has decided to give priority to develop infrastructure to develop exports under the ten year development plan, over US$ 100 million out of this amount will be utilised during 2008.

The National Council for Economic Development (NCED) has developed a cluster to bring all stakeholders together to find markets and to promote exports in the country.

Secretary to the Treasury Dr. P.B. Jayasundara giving an overview at the discussion held at the Hotel Trans Asia yesterday said the export sector in Sri Lanka has done a commendable service making a 12 to 14 per cent export growth at a time the country needs foreign exchange.

'But it is necessary to broad base the product and the market bringing the benefits to the rural community as there is a great disparity of distribution of benefits, Jayasundara said.

He said the Government is seriously looking at developing infrastructure giving high priority and is in the process of identifying constraints to achieve the targets under the ten year development plan.

Elaborating on the Government strategy towards this effort Minister Prof. G.L. Peiris said that value addition to exports is a basic component and the value of products such as spices, tea and gems could be upgraded much more and sold at higher prices.

He said connectivity is another important factor which would link the rural community to the exporters. Out grower concept where exporters will help the producers and producers supply their goods to exporters is another area that the Government is looking at to give the benefits to the rural community.

Export Development villages in Anuradhapura, Polonnaruwa and Kolonna are some of the steps taken. Developing the packaging methods, branding products associated with Sri Lankan identity and expansion to service sector are the other measures.