The Government is working under a firm vision of bringing export revenue to US$ 45 billion in a manufacturing economy, Industries Deputy Minister Chathuranga Abeysinghe told the debate on Vote on Accounts in Parliament.
“The Government is working under a firm vision to increase our export revenue, which is currently US$ 17 billion to US$ 45 billion by integrating the public and private sectors. Accordingly, the new Government’s goal is to increase export revenue in the IT sector from US$ 1.2 billion to US$ 5 billion, apparel export revenue from US$ 5 billion to US$ 7 billion, agricultural product exports from US$ 2.5 billion to US$ 4 billion, port-related earnings to $ 3 billion and tourism-related income to US$ 8 billion,” Abeysinghe said.
Due to the policies that change from time to time, Sri Lankan industrialists and investors have not been able to build stability in their industries, and that the government has a special responsibility to reduce the production costs of industrialists, he opined.
“The main problem in our country’s industrial sector is the lack of a national policy for the country’s industries. Other countries in the world run their economies according to long-term plans. But whether such a situation exists in our country is a question, and the way in which the institutional structures of a country operate is an important factor in managing the manufacturing economy of a country. Currently, the Ministry of Industry has been set up according to a strong institutional structure. Therefore, under the current government, it has been able to provide the necessary support to industrialists in an appropriate manner,” he said.
Abeysinghe said currently, there are many problems in the local industrial sector such as sourcing raw materials, capital formation, technology, finding foreign markets and tax policies. Therefore, our government is working to introduce a suitable tax policy for industrialists very soon instead of the current tax policy.
“It is a matter of regret that no policy has been implemented for research and innovation under any government so far. This situation has had a major adverse effect on the industrial elite. In countries like South Korea, Brazil, India and Vietnam, the entire economy was developed through development banks. There are currently 11 development banks operating in India. But no such development bank has been established in Sri Lanka. The new government aims to develop entrepreneurship and create a strong manufacturing economy. In other countries of the world, the small and medium-sized sector contributes 85% to the country’s overall economy. But in our country, that sector has collapsed. Considering this situation, we as a government are working to increase the contribution of the small and medium-sized sector to the economy. We have prepared a practical plan to revive the small and medium-sized industrial sector, which has collapsed at present,” he said.