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| Sunday, 4 December 2005 |
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| News Business Features Editorial
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National industrial policy vital to help industrialists by L. S. A. Wedaarachchi A national industrial policy should be implemented to encourage and promote industrialists. Though the global trend for the free flow of items all over the world cannot be ignored, Sri Lanka should also move into the manufacturing era where her requirements should be met in the country itself like India, China and Malaysia had achieved during the last decade. Due to the policies implemented after 1977, Sri Lanka became a dumping ground for used machinery and vehicles. To overcome the present situation the government under the leadership of President Mahinda Rajapakse has decided to implement a series of programs to assist and encourage local industrialists and entrepreneurs. According to President Rajapakse's policy statement the government will take immediate steps to accelerate industrial progress. It is expected to set up twelve investment promotion zones covering the entire island. Three-hundred new factories will also be built in each Secretarial Division in the island. Leading industrialists and the Chamber of Commerce and Industries expressed their cooperation for the rapid implementation of the economic and industrial development initiatives introduced in the Mahinda Chintana manifesto. Dr. Lawrence Perera, Chairman of Transmec Holdings (Pvt) Ltd, a pioneer manufacturer of Sri Lankan cars said the mentality of some bureaucrats in regard to the local manufacturing sector should be changed and all steps should be taken to encourage local industrialists to improve the production of Sri Lankan items. Dr. Perera successfully introduced his 'Micro' car with the technical support of local and foreign expertise a few years ago and had to go through enormous difficulties to register his vehicle in Sri Lanka. A few months ago he won the court case removing some administrative barriers. The newest model Micro Trend EFI 1000 CC - Year 5 engine car became popular and recently he signed an agreement with the Axia Group in USA obtaining US $ 4 million funds to develop his Micro vehicle project in Sri Lanka. Dr. Perera said that countries such as Malaysia, Korea, Thailand, India and China reached self-sufficiency in the manufacturing and industrial stage due to the wise and far-sighted policies implemented by their governments during the last decade. Foreign investments and technology should be used wisely for the vibrant improvement of local industries and the manufacturing sector, he said. "Mere assembling will not help improve local industries. Locally made accessories or spares are also used in the manufacturing process. Manufacturing and assembling companies either local or foreign should use locally made components or accessories for their products to qualify for the tax rebate," he said. The percentage of local components of the micro car is over 52 per cent. Executive Director of Tos Lanka Co and President of the Sri Lanka Electronic Manufacturers and Exporters' Association Merrick Goonaratna said after the tariff barriers were relaxed a few years ago, Sri Lanka also became a global village. At present the decisive point of trade is the high quality of a product, he said. Goonaratna who was the former Commissioner of the Sri Lanka Tea Board in Tokyo and the promoter of foreign manufacturing ventures to Sri Lanka from Japan said the government should assist manufacturing ventures to obtain advanced technology in the relevant fields to help them to improve quality and productivity. Some local companies such as Orange were able to establish themselves in
the local market competing with foreign brands due to their high quality and
productivity, he said. |
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