Business

Exporters call on government to develop national export policy

The National Chamber of Exporters of Sri Lanka (NCE) and the Exporters Association of Sri Lanka (EASL) representing small, medium and large exporters in the agriculture, industrial and service sectors last week called upon the new government to define its export policy giving high priority to the exports sector which it said was potentially the biggest foreign exchange earner and employment generator in the country.

Urging the development of a national export policy, the two associations which wished the government all success said that the people’s verdict was a challenge to all political parties and elected members to work unitedly, sans petty political agendas, to frame national policies for achieving socio-economic development and carrying the peace process forward.

The two associations said that they were particularly encouraged by the UPFA’s election pledges to recognise and support local entrepreneurs and accelerate the development of the small and medium industry.

The exporters urged the government to rectify the comparative disadvantages and barriers that stand in their way relating to the following identified areas:

1. Attitude towards work

A National awareness campaign towards better work ethics should be carried out through mass media and political pronouncements how EMPLOYEES - ORGANISATIONS and the country could benefit. Success stories of other countries who were behind us must be highlighted as examples.

2. Avoid overlapping of functions of Ministries / Government Institutions as far as practicable and a process of de-bureaucratisation be implemented (This has been spoken for years, committees appointed but the system is getting worse — creating conflicts and hardships and the public being pushed from pillar to post.

3. Avoid appointing more and more committees for studies — which have been done over and over again.

Do a study on studies — formulate an action plan and time frame.

More important is monitoring of plans and implementation on a continuous basis.

4. Reduce the disparity between BOI and Non-BOI exporting companies since they are competing in the same market.

5. Reduce the Income Tax on Export Profits from 15% to 5%.

6. Provide assistance for Research and Development.

7. Provide assistance for developing Sri Lanka brand names.

8. Lower interest rates — preferably a preferential rate for Exporters based on volume of Exports.

9. Cost of electricity is about the highest in the world — (although we have been talking of a coal power plant for years — this has not happened and unless immediate action is taken, Sri Lanka will face a severe power crisis obstructing all good plans and development activities).

A preferential rate for Power should be given to Exporters based on Export volumes.

10. Avoid ad hoc policy changes.

11. Fears exist among our members that increases in salaries of public servants as pledged in the election campaign would have pressures on the private sector and an affect on the competitive edge.

Any increases must be based on performance. The private sector has a variety of incentives — even Attendance Incentives (this sounds ironical since employment is provided to attend work).

The two associations also called on rationalising the number of holidays saying that the country had the highest number of holidays in the world and wanted the government to address the lack of skilled, trained and experienced managers, technicians and workers to meet today’s demands.

Pointing out that government training programs were not geared to demand, they suggested privatising of the management of government technical training institutions saying that the present training programs should be modified to meet market demands. Also, they pointed out that private sector enterprises can be used as "training grounds."

Suggesting that trainees be exempted from labour laws for two to four years, the associations said that this would encourage the private sector to take in more trainees and produce more skilled personnel both in the short and long terms.

The associations also called for the exemption of exporters from the economic service charge introduced by the previous government and also said that it was essential that the work of government and interaction between government, ministries and institutions and exporters be made productive.

"Many members of the private sector spend valuable time attending meetings. More time is spent on the roads. Many public servants are in many committees rushing from one meeting to another disrupting their own work," the associations said.

They also said that the government must pay special attention to sustain existing infrastructure and develop already established businesses and called for a strong dialogue and partnership between the government and relevant institutions and the two associations which had a vast and varied knowledge and experience in business and the exports sector.

The memorandum was signed by Messrs. D. T. Kingsley Bernard, President of the NCE, Graetian Gunawardhana, Chairman of EASL and Patrick Amarasinghe, President Emeritus and Founder President of the National Chamber of Exporters of Sri Lanka.


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