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| Sunday, 13 February 2005 |
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| News Business Features Editorial
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Inflow of foreign products hits local industries by L. S. A. Wedaarachchi Unlimited inflow of foreign products to the market has created an unhealthy situation for local products which are stagnating in the market now. Hailing the recent decision taken by the Treasury to re-impose customs duties on a number of items that were permitted to be imported duty free two days after the tsunami disaster, local industrialists pointed out that there should be a National Industrial Policy for Sri Lanka. According to the Treasury, the import of rice or acceptance of rice as donations as well as the import of biscuits, used clothes, drinking water and instant food are to be discouraged since it will have an adverse impact on local industries. Due to the free flow of various foreign products into the local market by legal and illegal ways, some local industries could not survive during the last two decades. A spokesman for a leading group of companies said that their assembling plant of electronic and electrical items have been tentatively closed down due to poor sales. Electronic and electrical items from Taiwan, China, Korea, Japan, India, Malaysia and Indonesia have been flooding the market in the last two decades. Local products cannot compete with them when it comes to finish and pricing, he said. Our neighbouring country India, at present produces a wide range of goods ranging from a pin to a satellite. The patriotic policies and decisions taken by the Indian government after independence targeting the development of local industries and self-sufficiency, helped achieve this remarkable success. In the fifties, whatever products which were imported from so-called developing countries such as USA, UK, Germany and other European countries, those are now being produced by way of assembling them in their own factories. India, China, Malaysia, Korea, Indonesia and Taiwan obtained the knowledge and technical know-how from the developed countries and succeeded in reaching the present level. Unfortunately Sri Lanka was not able to achieve what our regional countries achieved. At present Sri Lanka is a good market for milk products, building materials, textiles, electronics and electrical items and vehicles produced by developed and developing countries. Local industrialists point out that this situation should be changed and the government and policy makers must draw their attention immediately to this pathetic situation specially after the unexpected tsunami devastation. The proposed National Industrial Policy can rebuild Sri Lanka, they said. The need for local industries in the nation rebuilding exercise is vital. A new structure should be introduced to improve the capacity of local industries and improve the quality of the local products said a spokesman for the Chamber of Commerce and Industries. The relevant authorities should bring relief immediately by providing funds and equipment to industrialists who were affected by the tsunami. When the new cities, houses, roads, railways and electricity and telephone lines are built under the rebuilding program of the country, it is vital to utilise local industries as well as local resources in spite of foreign aid, he said. |
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