Need for establishment of agro-export zones- Prof. G. L. Peiris

The Government has allocated comparatively a large amount of funds in the present budget, for export promotion that includes the increase of export volumes, incentives intended for exporters and producers of export goods and establishment of agro-export zones, Minister of Export Development and International Trade Prof. G. L. Peiris said at a mee ting that was held recently at the Mahanaga Mandiraya at Hambantota.

The meeting was held to inform the Government officials, people's representatives and other relevant segments about the forthcoming 'Ruhunu Expo' Trade Exhibition organised by the Export Development Board and scheduled to be held at Hambantota on December 13 and 14.

"It is necessary to increase the volume of exports in the country in order to earn a higher amount of foreign exchange which would, at the same time, facilitate an erosion of the severe income disparities that exist at present between the urban and rural sectors," the Minister said.

Prof. Peiris said that Sri Lanka could be happy at the turn of events in the international sphere. When the gigantic economies in the West and elsewhere were faced with a severe economic crisis, Sri Lankan economy and the banking system had been able to weather it without incurring any considerable damage.

Prof. Peiris said that the export income for the year 2005 had been Rupees 638 billion which had increased to Rupees 773 billion in 2007, recalling that Sri Lanka had achieved an annual growth rate of about 7 per cent during the last three years, thus indicating an annual growth rate of approximately 12 per cent. So it is essential that this trend be continued into the future for this purpose and to make our international trade dealing more efficient, a sum of Rs. 1,500 million has been allocated.

The Ministry and the EDB are very much involved in establishing agro-based export ventures with a view to channel such income into the development of rural areas, the Minister further added.

Steps had been taken to strengthen the trading position of Sri Lanka in the international market and promote more exports to existing markets while looking for new destinations for exports, all through new and creative programmes that suit the ever-changing circumstances.

The Minister said that efforts had been made to restructure the whole economy of the country. In the recent Budget, several proposals had been made to provide furnace oil at low cost, help reduce the production costs of local industries, loan facilities for medium and small-scale industrialists, concessions for the repayment of loans already obtained and revision of interest rates that would all contribute towards the well-being of the small producer and manufacturer.

Prof. Peiris admitted that, though his first objective of raising export income had been successfully achieved, the percolation of such income towards the rural sector had left much to be desired. In this respect, he was intent on launching a programme of action and the concept of agro-export zones would occupy a prominent place in such a plan.

Minister of Ports, Civil Aviation and Water Management, Chamal Rajapaksa, said that the first stage of the Hambantota harbour project would draw to a close in 2010. In addition to the proposed airport project, it is necessary to initiate some export-oriented programmes as well.