Govt’s aim to distribute resources evenly - GL

The Government intends to channel economic dividends and other resources away from areas that have been enjoying such benefits, to other parts of the country where such inputs are needed most, Export Development and International Trade Minister Prof. G. L. Peiris said.

He was speaking at a meeting at the Export Development Board Kandy Office to inaugurate a Chamber of Exporters of the Central Province and to distribute business promotion funds among export-oriented businessmen.

Over Rs. Two million under the Netherlands’ Aid Scheme was distributed among nine entrepreneurs for business promotion activities by the Sri Lanka National Chamber of Commerce on Export Development Board recommendations. Prof. Peiris said the Government was keen to achieve a balanced economic development within a structured policy framework.

“Sri Lanka today, with a per capita income of approximately US $ 1,350 is regarded as a middle-income country and in the Asian context it is a very satisfactory achievement that all Sri Lankans could be proud of. But we are also faced with a situation where the national income is not evenly distributed throughout the country,” he said.

“The Government’s intention is to attend to this deficiency through a mechanism that would ensure the channelling of national resources to areas that hitherto have not enjoyed such benefits. Hence the inauguration of the Bureau of Exporters of the Central Province could be viewed as a step in that direction,” the Minister said.

Prof. Peiris highlighted four factors that had to be taken into account with regard to decisions on export-related matters.

Firstly, such decisions should be based on the needs and priorities of the area under consideration. Thus the Ministry had undertaken programmes to promote exotic fish breeding in the Polonnaruwa District, cultivation of banana in Embilitipitya and the Kithul industry in Kolonne. Though Kandyan areas have been rich in resources they have not been tapped so far, he said.

Secondly, funding plays a major role in any such decision. However, feasible the project may be, it would not see the light of day without the relevant funds. Thus the Ministry in collaboration with the National Commerce Board has devised a scheme to provide financial resources to deserving entrepreneurs, he said.

“Marketing would be the third factor in this regard. Though the consumer in Colombo pays about four times the cost incurred by the farmer or manufacturer for a product, those margins do not percolate down the production line.

So there must be a genuine effort made to divert these excessive profits away from the big companies to the producer and the consumer. Though we have received a record amount of foreign exchange this year the people would not benefit unless such resources could be channelled into the villages.”

Prof. Peiris said fourthly we must strive to get the maximum advantage afforded to this country through the bilateral trade agreements it had entered into with other countries.

“For example, under the Indo-Lanka Free Trade Agreement this country could export 6,000 items to India without having to pay any customs tariffs. Similar opportunities are available under our agreement with Pakistan. But unfortunately we don’t utilise any more than 40 per cent of such allowances,” he said.

Prof. Peiris reiterated that in the future, resources will not be allocated only to the Western Province as in the past and said that in the present Budget, it has been proposed to ameliorate this situation. He also requested exporters to make use of the opportunities that are available.