NCE, ILO to boost economic growth in North

The Local Empowerment through Economic Development (LEED) Project, which has been in operation in the Northern Province since 2011, is an initiative of the International Labour Organisation (ILO) funded by Australian government.

According to a LEED project spokesman, the project has gained recognition with government and producers and manufacturers in the province, through its business development initiatives for stimulating local economic development.

The new business model has created many opportunities for communities in the North, and has been proved to be one of the best models in promoting and sustaining growth in agriculture, fisheries and manufacturing, he said.

The economic recovery phase in the north has been constrained by low capacity and micro nature of the industrial sector and limited capacity for value addition to create sustainable business entities.

Hitherto, the North has been a supplier of raw material that is processed elsewhere in the South to add value. This inequality in trade and business relations has contributed to a negative perception in the minds of the people in the North, affecting the reconciliation process as well.

In this background, and the implications of the existing model for business development and trade relationships, the ILO LEED Project launched a pilot program related to a new business model covering four sectors viz paddy cultivation, agricultural products (fruits and vegetables), fisheries, and construction, to promote meaningful partnerships between business entities in the North and the South.

This approach was to create more income earning opportunities for the vulnerable communities in the North, through backward and forward business and market links.

In 2013 the LEED Project contacted the National Chamber of Exporters (NCE), the only private sector Chamber which exclusively supports Sri Lankan exporters to set up meaningful business relationships between the producers and manufacturers in the Northern region and exporters in the South.

Following initial assessments, the NCE organised a 10-member business delegation from among its member companies to visit the Northern region covering the Vavuniya, Kilinochchi, Mulaitivu and Jaffna districts, to explore business opportunities in the agriculture and fisheries sectors.

The visit was facilitated by the office of the LEED project in Kilinochchi, and supported by the Chambers of Commerce and Industry in the Kilinochchi and Mulaitivu districts.