The situation has now been positively addressed, with the initiative of the Government, of announcing a proposed Economic Stimulus Package, which is greatly welcome. It is hoped that the package will be implemented in its entirety at an early date.

Meanwhile, we welcome the Export Development Reward Scheme, which seeks to reward export performance of existing Exporters, by assisting to secure markets, penetrate new markets, establish backward linkages, diversify and increase value addition.

This scheme is most welcome, particularly in maintaining, and surviving in competitive global markets. Meanwhile, we would also suggest that, in the backdrop of a decline in exports, some form of support be considered for those Export Companies, who are facing difficulties, and have not performed on the laid down basis. Such Companies require support to survive in the face of declining export revenues, due to drop in global demand and rising costs, particularly high energy cost, resulting in rapidly eroding margins. SME Exporters in particular, would face such a situation.

Last year when I took over, I emphasized the need for the Sector to focus on certain Key areas such as niche markets and on high end value added products, particularly where we have a competitive and comparative advantage. Also, greater attention to expand the export of Services where there is potential for Sri Lanka to grow.

I would like to touch on a few areas which I feel could be focused on, in the coming year. Firstly the IT & Software Sector including Business Process Outsourcing. Despite the global downturn, this sector has performed well, and Sri Lanka is now amongst the top ten countries in the world. Rather than trying to compete with India and similar players at the lower end of the market, the strategy should be, to identify the niche markets where the country has strengths, and move towards Knowledge Process Outsourcing, in areas such as Accountancy & Healthcare, and concentrate on developing these. This is also a sector which has one of the highest value addition, whilst having the potential to become a Billion Dollar Industry for Sri Lanka.

Another key area is the Agro Industry, where Sri Lanka needs to focus on indigenous crops with export potential such as Passion fruit, Pineapple, Banana and Mango, where Sri Lanka has comparative advantage, and which has a growing market overseas. In this field, Sri Lankan Exporters can enter partnerships with rural farmers, and make maximum use of these opportunities. Here, the growing demand for Organic Agricultural Products needs to be also developed as this Sector can be expected to be a significant player in global markets.

Looking more closely at our Regional Markets is another strategy. Despite the Global downturn and recession in our traditional markets of Europe, USA and Japan, we have two giants – India and China whose economies, which seem to be showing greater resilience and are recovering much faster than rest of the world. It is necessary for our Exporters to concentrate on these markets and exploit them, which will also enable the Sector to minimize the impact of the Global economic recession.

Potential in the newly liberated areas of the country also should be explored- With the North and East opening up, there is tremendous scope for the Fishing and Agriculture Industry to make a significant positive impact on the Export Sector. Exporters need to position themselves immediately to maximize on this new opportunity, with emphasis on developing our non traditional Agricultural Exports.

Meanwhile Branding and Value Addition should continue as a priority. If we take our traditional exports like tea, rubber, coconut based products, spices as well as fruits, flowers, vegetables, sea food and gems, the way forward is through value addition and building Sri Lankan brands wherever possible.

In the context of the vital role of the Export Sector, in order to face the continuing global economic downturn as well as prepare to exploit the opportunities emerging when it bottoms out, several operational areas also need attention. As the apex body representing over 1000 Exporters through direct and indirect membership , who contribute to cover 80% of the total exports in the country, the Exporters Association has been actively addressing some of the issues with the Institutions concerned. Issues requiring attention include ,the continuing problem of obtaining outstanding VAT refunds, the need for greater ease of doing business at Customs and Port, expediting Public Entities to position themselves by simplifying procedures and business re engineering to cater to electronic transacting and electronic data interchange, and the need for on line payment facilities with Government Agencies to be made effective. Meanwhile the speed of forwarding and clearing cargo will increase competitiveness by reduced transaction costs, and cutting down delays. It is suggested that an Inter Ministerial Task Force be appointed to fast track adoption of changes to certain existing archaic and redundant systems .All these will contribute towards a stronger Export sector, and our Association will make every effort to bring about the necessary changes in these areas.