Proposals for achieving National Export Target of $ 20b by 2020

Value addition and branding, an Exim Bank land for export production enterprises and import substitution, streamlining Customs services and procedures imposition of a development levy and the reduction of the number of holidays are key issues to achieve the National Export Target of US$20 billion by the year 2020.

President NCE Sarath De Silva forwarded these proposals to Treasury Secretary Dr. P.B.Jayasundera recently.

Export of high value added products and branding of Sri Lankan products through appropriate assistance and incentives to reach high end world markets, for example in the tea sector where several indigenous brands have made their presence felt in the most sophisticated markets such as Japan, US and Europe. Similar approaches are possible in other high growth sectors such as spice products, value added agricultural products and processed food products as well as gems and jewellery.

He said, that there is a dearth in innovative development banking services in the country to support export oriented enterprises specially SMEs to reach the world market. To effectively tackle the issues related to financing the time is right for the State to seriously consider the setting up of a specialised Export-Import Bank with adequate capitalisation to compete in the market and provide competitive and innovative financing products to deserving enterprises.

He said, that it is a known fact that identification of suitable land as well as obtaining identified land from the state authorities remains a frustrating exercise which only discourages entrepreneurs. Therefore, there is an urgent need to establish a land bank and a one stop shop for the allocation of land specially for agricultural purposes and also for industrial purposes speedily by streamlining procedures. The land ceiling of 50 acre units prohibits aggressive agricultural raw material production for export as well as for import substitution.

Streamlining Customs clearance procedures and transparency in operations is imperative in a computerised environment.

Though computerisation has been effected to a certain extent in regard to customs procedures and clearance, exporters continue to encounter delays and bear additional costs due to inefficiencies and breakdowns in the system.

Although clearing facilities are available for airfreight cargo round the clock seven days of the week for other cargo only perishables are provided this facility. As such enterprises which need to clear urgent spare parts to facilitate their operations cannot do so during the weekends.

At present funds that are collected from cess imposed on various product sectors such as tea, rubber fruits as well as others are not utilised for the intended purposes of development of the particular sectors. But such funds are utilised for other state expenditure.

It is a must that funds collected through cess be ploughed to the development of particular sectors to meet the overall export target of US$ 20 billion to be achieved by 2020.

De Silva said that it is a well known fact that Sri Lanka enjoys an excessive number of holidays which has an adverse impact on the productive output.

As a result many exporters need to work during holidays to meet the schedules which causes additional payments for the staff such as overtime.

Therefore, NCE proposes a rationalisation in the number of holidays to achieve the export target. SG