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Sunday, 19 March 2006    
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Discrimination against local products at BIA?

by Gamini Warushamana

The Ceylon National Chamber of Indistries (CNCI) and four leading export companies say that local producers are discriminated as they are not allowed to display their products at the Bandaranaike International Airport (BIA) by the Airport and Aviation Authority (AAA). Ceylon Biscuits Group, Multichemi International Ltd, Link Natural Products (Pvt) Ltd, and Thansher's and Co, the four companies say they are denied promoting their products at the BIA by the AAA.

The project initiated by the National Council for Economic Development (NCED), to provide space to local exporters and manufacturers at the BIA to exhibit their products subsequently adopted as a budget proposal has been neglected by the AAA, CNCI said. The stakeholders of the initiative are Export Development Board, local manufacturers and exporters. After several rounds of negotiations the AAA allocated only 300 sq.ft to the EDB at the airport.

After calling for applications and several interviews the EDB selected 12 manufacturers. However, Airport and Aviation Service (Sri Lanka) Ltd (AAS) said that tobacco, all confectionery items and cosmetics will not be permitted to be displayed at the EDB centre and hence these four companies are unable to promote their products.

The CNCI said that in addition to the passenger service and collecting revenue for the government, the international airport should be a window for the country's quality products.

Jude Rubera of Ceylon Biscuits Group said that the company exports their products to 68 countries and a number of major supermarket chains. "We sell our products in international airports in the Maldives, Australia and New Zealand, but we are deprived of doing so in our own country", he said. All these companies are leading exporters.

CNCL and the companies allege that AAS Ltd has signed a short-sighted agreement with a foreign duty free shop operator prohibiting the sale of local products that competes with imported duty free items.

The lease agreement of the duty free operator is up for renewal but is to be given the right to operate the duty free complex indefinitely. The applications for space by these companies in individual capacities have also been neglected by the AAA, they said.

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