MoU to fund SME industries

by Jayampathy JAYASINGHE

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The Sri Lanka Chamber of Small Industry signed a Memorandum of Understanding (MoU) last week with the Lanka Puthra Development Bank to fund Small and Medium Sector industries.

Minister of Export Development and International Trade Prof. G. L. Peiris told the 45th anniversary of the Sri Lanka Chamber of Small Industry that though the current global recession has affected several countries, the Sri Lankan economy has been insulated from it as a result of not liberalising its capital account.

The recession has precipitated a crisis in wealthy countries affecting their banking sectors adversely. However, the Sri Lankan economy was salvaged as it did not embrace in toto the conventional ideology of International Monetary Fund policies. Referring to small industries, he said, there was a great deal of potential for local farmers, craftsmen and entrepreneurs. But farmers do not derive the full benefits of their labour because they lack access to marketing facilities.

Referring to small industries, he said the progress of an institution depends on the attributes of persons who lead such an organisation and the qualities of leadership plays an important role. The minister paid tribute to the President of the Sri Lanka Chamber of Small Industry, Aloy Jayawardene who rendered a yeomen service to the industry during the past 45 years.

The Chamber of Small Industry's President Aloy Jayawardene thanked the Minister of Industrial Development Kumara Welgama for incorporating the Sri Lanka Chamber of Small and Medium Industry by an Act of Parliament. He also thanked Member of Parliament Nirupama Rajapakse for moving the Bill in Parliament.

He said Sri Lanka's business community is divided over the Comprehensive Economic partnership Agreement (CEPA) which was to be signed between Sri Lanka and India during the recent SAARC summit in Colombo.

It was called off after protests and concerns were raised by leading industrialists and politicians. According to Indian statistics, Sri Lanka's exports to India have grown 10 times since 2000, while Indian exports to Sri Lanka have grown five times.

One reason against the agreement was whether Sri Lankans would get an opportunity to work in India. But, according to the Indian High Commission over 2,000 visas have been granted to Sri Lankan professionals to work in India.

He said Sri Lankans fear that CEPA would lead to an influx of Indian doctors, lawyers, accountants and engineers into the country. According to the Indian High Commission CEPA does not apply to any of these professional categories. Instead India's openings create opportunities in these sectors for Lankan professionals. Under CEPA, India has agreed to grant unlimited Visas to Sri Lankan executives to work in India.

Several industrialists were presented with awards at the 45th anniversary..