Budget 2009 targets export earnings, rural folk - Prof. G. L. Peiris

Budget 2009 has proposed a number of measures to increase export earnings by increasing the export capacities and capabilities as well as establishing new projects in the provinces to give the benefits to people in rural areas.

Minister of Export Development and International Trade Prof. G.L. Peiris said that among the measures proposed are establishment of export agro zones, One village one crop concept, financial assistance, reduction of fuel adjustment levy, reduction of price of furnace oil, and fertiliser for tea, VAT exemption for locally manufactured tea machinery, revision of export duty on value added vein quartz, VAT concessions, promoting local industries with export potential and increasing cess on imported handicrafts and salt.

He said that nine export agro zones will be set up within two months. Five hundred million rupees have been allocated to the EDB to implement this program to produce palmyrah, cinnamon, ginger, vanilla and drinking water. Minister Peiris said that all information on setting up these zones will be obtained from the farmers. The Minister said that the zones will be established in Jaffna, Trincomalee and Batticaloa as the war should not only be won politically but economically too.

Three hundred million rupees have been allocated for the One village one crop program to start the cultivation of lime, papaya, banana, onions and chillies. The program has been already launched in Tambuttegama while Polonnaruwa has started breeding aquarium fish.

Due to the global financial crisis the country cannot be complacent exporting to traditional markets. Therefore, we have to find new markets, for this purpose the Government has allocated Rs. one bln from Budget 2009. Reducing the fuel adjustment levy to 15% for one year for industries and reducing the price of furnace oil used for industries will greatly benefit industries as this will result in increasing the competitiveness of local industries.

The relief measures given to the tea industry such as the reduction of price of fertiliser, Vat exemption for locally manufactured tea machinery, duty exemption for components and parts used for fabrication of the tea industry, imposing a cess of Rs. 4 per kg on imported tea, exemption of tea packets and tea bags from export cess, 15% concessionary tax for export of tea packets less than one kg, establish a fully state owned company with shares owned by the Tea Board, Tea Small Holdings Authority and the EDB will help to increase tea exports and earn a higher revenue.

He said that the export sector of Sri Lanka is expected to play a vital role in achieving a 8% growth rate, generating employment and eliminating poverty and regional disparities. Therefore, the Government has placed special emphasis on developing the export sector.

Prof. Peiris said that President Mahinda Rajapaksa’s plan is to boost local industries and export the products. In the event the country imports goods we will never be able to increase local production. Therefore, the Government has increased the taxes on imported goods while giving incentives for local industries.

The EDB will open regional offices to facilitate exports. SG