Exporters to be rewarded soon

by Lalin FERNANDOPULLE

Exporters will be rewarded under the export development reward scheme following the completion of the evaluation process next month, Export Development and International Trade Ministry sources said.

Sources said the delay in rewarding exporters was due to the complex and tedious evaluation process.

Over 300 exporters applied for the reward scheme of which 250 have been selected.

Exporters who are eligible for the first quarter rebate have not been rewarded. Applications for the second quarter close last week.

The export development reward scheme was launched to help exporters who lost revenue due to the volatile global economic situation that resulted a drastic drop in export volumes.

Exporters who achieve 90 percent of the export income of the third quarter of 2008 in the first quarter of 2009 are eligible for a five percent rebate of the total earnings and those who achieve 80 percent are entitled for a three percent reward while maintaining the same number of employees.

Chairman Sinbad (Pvt) Ltd. M.C.M. Zarook said a small and medium scale exporters are the most affected by the global crisis and incentives of this nature are vital to recover from the setback.

The SME sector accounts for over 65 percent of the country’s export earnings. Exporters of spices and allied products, desiccated coconut, dried fish, fruits, cut flower and ornamental fish incur losses due to poor infrastructure facilities. “The quality and quantity of tea offered at the auctions are low due to non fertilization and the adverse weather conditions. The growing tea market may face a decline if the weather does not improve”, Zarook said.

The delay in implementing the Colombo South Harbour Expansion project is causing heavy losses to container cargo shipments.Experts in the maritime sector warn that Sri Lanka could lose its hub status if maintenance and expansion does not take place.