Sri Lanka can face and overcome the challenges it faces due to the global meltdown through the resilience of its people and the natural positive advantages that it enjoys, said Minister of International Trade , Professor G.L.Peiris. He was addressing the 14th annual general meeting of the National Chamber of Exporters of Sri Lanka at the Taj Samudra Hotel on Tuesday.

The NCE is the prime institution involved in promoting Sri Lanka’s exports and is assured of the Government’s concern to help it achieve its objectives, he added

Professor Peiris added that no country, however big or small can insulate itself from the adverse consequences of the global economic crisis. However the resilience of our people seen during various periods of the history of the country will help mitigate the negative consequences. There are two options which are available to us, the first is to be overwhelmed by the situation while the second is to recognize the difficulty and not be captured by it.

Our inherent strength will stand in good stead when facing this situation, we will have the courage to do so and could remain calm amidst these difficulties. There are a number of positive which will help us do so. Huge opportunities are available in the Eastern Province with great potential for economic development. These include agriculture, fisheries and small and medium industries. Large companies are moving into the Eastern Province among whom are the pioneer apparel giant Brandix with a factory to provide 1700 job opportunities for girls in the area , another is the Hayleys Group with large investments in agri-based projects.

The government , last week inaugurated a permanent regional office of the Export Development Board in Ampara which will spearhead a number of initiatives to further promote the developments inn the Eastern Province. 500 hectares have been identified for the cultivation of saffron while 200 hectares will be utilized to further consolidate Sri Lanka’s market leadership of 80 per cent of the world cinnamon market, which it currently holds. Increasing of the current 20 per cent of liquid milk is another goal.

The growth in the agricultural sector which was 13 per cent last year is an indication of the possibilities available to face the situation.

Further, the successful Free Trade Agreements with India and Pakistan which have resulted in huge increases in trade and also offer opportunities to third countries to invest in Sri Lanka and export to India , free of duty and tariffs, provided they add value exceeding the threshold of 35 per cent. Sri Lanka is no longer a 19.5 million market but the gateway to the huge Indian subcontinent, with over a 350 million high end purchasing capacity.

The new government of Bangladesh has also indicated its interest in negotiating a free trade agreement with Sri Lanka, Peiris added. In order to assist investors obtain required land without much difficulty ,the BOI, has established a Land Bank which will facilitate inauguration of new projects without any delay.

However, certain tools are required to implement this programme of which value addition and branding are the most crucial. Certain industries have also been identified as thrust industries which are capable of crossing the US$ one billion threshold. These are the Rubber, Spices, Leather and Gem and Jewellery industries. It is of importance to note that Sri lanka has already established itself as the provider of quality Ceylon Tea and also as the home of the Sri Lanka Sapphire. Yet another is the accomplishment of the inclusion of the brand "Colombo Cut" into the vocabulary of the international gem and jewellery industry, consequent to cutting, polishing and refining of uncut diamonds imported from Belgium.

Export processing villages are also a very powerful mechanism to help spread the benefits of increased exports to the grassroots level. We have many such villages, he added.

When exports are considered it is generally assumed to be of commodities. However this is an antiquated view and Sri Lanka must move towards the export of services including those connected to construction, banking, insurance and IT sectors. Already quantity surveyors, from Sri Lanka are performing very well in the Middle East.

With the potential available and the courage and resilience of our people, ably guided by organization such as the NCE, facing the current problems due to the global meltdown will not be difficult, he concluded