'Lanka, a commercial hub by 2016'

The country has achieved development in all spheres during the past four years. To sustain a high level of economic growth, industrial growth is a fundamental requirement, said Ceylon National Chamber of Industries (CNCI) Chairman Gamini Gunasekera said at the 52 AGM of the Chamber. The share of the industrial sector in total GDP was 29.8% in 2011, 28.4% in 2012 and 30% upto August 2013.

The new CNCI office-bearers

Over 40 percent of exports consist of labour intensive products such as ready-made garments. The country has a vision to achieve a per capita income of US$ 4,000 by 2016 and the country has positioned itself to become a commercial hub in Asia by 2016, he said.

"Sri Lanka is now a middle income, developing country. How long can we move forward with the comparative advantage of low cost labour?," Gunasekera queried.

"As a developing country and growing faster than other countries in the same category, we cannot expect our exports to retain the same momentum unless we make innovative products and adopt modern technology," he said.

"In the last budget the government allowed a deduction for research and development expenses.

The private sector should take advantage of this provision and work with the relevant institutions to improve research and development activities. Many of our manufacturers face unfair competition due to unethical business practices such as under-invoicing and dumping," Gunasekera said.

"The government and private sector have to act to eliminate these malpractices, which endanger our industries. Most of the prevailing labour laws were enacted in the 1930s and 1940s. These laws which prevailed from the time of the British are obsolete and the British themselves have rescinded them but we still hold on to them," he said.