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| Sunday, 10 February 2002 |
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Plans to revive rural economy by SUREKHA GALAGODA The Ministry of Rural Economy will initiate several projects to uplift the living standards of rural dwellers. At present, 72 per cent of Sri Lankans live in rural areas. The projects include the appointment of an advisory board on rural economy, formulation and implementation of a regional specialisation industrialisation policy, establishment of an enterprise development bank, credit scheme to purchase equipment, marketing facilities for ornamental plants and establishment of export promotion villages. Minister of Rural Economy and Deputy Minister of Finance Bandula Gunawardena said that an advisory board on rural economy will be set up within the 100 day programme. The board will comprise eminent academics and industry experts. He said at present 75 per cent of the industries are located in the Western Province, causing severe socio-economic and environmental problems. As a solution, the government will establish a regional specialisation industrialisation policy. For example, a special park for the printing industry will be established in Panaluwa. "The government will develop the infrastructure and request government and private sector investors and manufacturers engaged in the printing industry to establish ventures," said the Minister. It will be on a 20-acre block belonging to the State Printing Corporation. "If the park gets over 25 printing companies, we will have a printing school too," he added. The park will have manufacturing plants to make garment tags, paper, corrugated boards and material for packaging. The policy of the Ministry of Rural Economy will be implemented in coordination with the Ministries of Enterprise Development, Western Regional Development and the Ministry of Mass Communication. Plans are also under way to establish an enterprise development bank to provide credit to small and medium industries and self-employment projects at concessionary rates of interest. The bank will be floated on the lines of the National Development Bank and the DFCC Bank. The government will have a 51 per cent equity stake in the bank while the rest will be given to entrepreneurs. The government has decided to give the necessary equipment required by entrepreneurs on credit without charging an interest rate as a solution to their financial problems. The present scheme of giving loans is not viable since the money is not utilised for the purposes it is given. "We are negotiating with diplomatic missions of Canada and Japan to get the goods on credit," he added. The Minister also said that a marketing facility for ornamental and flowering plants will be established between Homagama and Avissawella at Galagedera. Persons in Homagama and Avissawella districts engaged in self-employment projects relating to rearing of plants or a related industry such as manufacturing fertiliser or pots will be able to sell their products at this place. Plans are also under way to establish export promotion villages similar to those initiated by the late Minister Lalith Athulathmudali. In addition the Ministry is also planning to establish a marketing centre for export quality products on the Katunayake-Colombo highway and an agricultural marketing centre for rural products similar to the Dedicated Economic Centre at Dambulla, the Minister said. The Ministry is also planning to increase trained human resources in the rural sector by using schools which are closed to start job-oriented courses. "We are doing a survey to find out how many schools are closed around the country," said the Minister. |
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