The Export Development Board (EDB) has disputed the COPE’s (Committee on Public Enterprises) assertion that funds had been squandered on foreign trade fairs, particularly a ‘single country’ exhibition held in the UK last year.

Despite the EDB spending Rs 72 million on foreign trade fairs last year the benefits had been negligible. The UK show alone had cost the taxpayer Rs 26.5 million, the COPE revealed, highlighting that the only quantifiable benefits obtained were worth Rs 4 million. The Island learns that several ministries had spent additional funds due to the presence of ministers and their staff.

An EDB spokesperson said that COPE findings did not reflect a balanced view on their efforts to promote Sri Lankan products overseas. It would be unreasonable to expect a tangible increase in exports overnight as a result an overseas exhibition, the official said.

Overseas trade fairs, seminars and other forms of promotional work were needed as part of the government’s overall strategy, he said.

The COPE, in its latest findings tabled in Parliament had severely criticized the EDB for throwing away funds on foreign jaunts, mismanagement, irregularities and violation of tender procedures.

"The watch dog committee largely targeted us over the UK show. Rising operating costs are a constant worry," the official said. He regretted, what he called, COPE’s unfair assessment.

Fielding questions, he pointed out the discrepancy in the funds available for trade development and overseas promotional work and administration. "For trade development we are annually given Rs 100 million whereas administration costs Rs 220 million. In fact, we should have been allocated additional funds for business promotion."

The COPE, on the basis of an examination held in February, had pointed out the EDB had sought a staggering Rs 960 million last year but had received Rs 533 million out of which almost 50 per cent had been categorised as establishment cost.