Six UNIDO projects in the pipeline

Sri Lanka has called on the UN for direct, wider engagement in its industrial sector for the first time.

“UNIDO is ready to move ahead with Lankans and the new government.

Six UNIDO projects are in the pipeline for Sri Lanka,” Vienna-based visiting UNIDO Director General Li Yong told the bilateral session at the Industry and Commerce Ministry last week.

Minister of Industry and Commerce Rishad Bathiudeen led the Sri Lankan official team that met UNIDO, Director General Yong.

Additional Secretary Asitha Seneviratne, Director General, Department of Commerce, R D S Kumararatne, top officials and Head, UNIDO Focal Point, Colombo, Nawaz Rajabdeen were also present.

This is the first time that a Vienna-based UNIDO Director General officially toured Sri Lanka.

“It is time that Sri Lanka receives a full-fledged country office of UNIDO. Setting up a country office will send a strong positive signal to the industry and export sectors,” said Minister Bathiudeen.

“The industrial sector contributes to almost one third of our GDP and, therefore, it's an important driver for us. We lead in South Asia when it comes to industrial contribution to the overall GDP.

"Given that we are aiming at becoming an upper middle income economy, its importance only tends to increase," he said.

"Almost 85% of Sri Lanka's industrial economy is concentrated on manufacturing. Approximately 680,000 people are engaged in the industry, the second is the mining sector which forms 12% the industrial economy, while the third is the electricity, gas and water sector which is only 0.19% but still plays a key role," the Minister said.

" Within the manufacturing sector the largest number of establishments are under the food and beverages sub sector with 4,250 establishments and 127,000 people engaged in them. We continue to stress the importance of sustainable industrial development which should be an inclusive and unitary concept," he said.

The experiences of the developing countries have shown that development aid alone is not adequate and that manufacturing also played a crucial role in development. The Lima Declaration adopted by the General Conference of UNIDO in December 2013 is important for the future of UNIDO.

"The new development agenda post-2015 will have ISID included in it as a part of the Sustainable Development Goal. Once it is adopted by the UN General Assembly we have no doubt that it would further reinforce UNIDO's role and make it relevant to all members," Minister Bathiudeen said.

"We are pleased that Sri Lanka contributed effectively to the successful negotiation of the Lima Declaration and to the process of consultation on the evolving new development agenda. Sustainable development contributes to value creation with social responsibility," he said.

"A collective response to global warming lies in part in effectively upholding the principle of shared but differentiated responsibility. Sri Lanka advances this position as an important aspect of its national development policy,” the Minister said.

In the second quarter of 2014, the industrial sector contributed to 31.4% (totalling $2 billion) of Sri Lanka's GDP.

UNIDO Director General Yong said, “UNIDO will continue and commit our best to support the government to implement more industrial development programs. We have enjoyed a good relationship with Sri Lanka for a long time and it is time to expand this relationship."

"Sri Lanka is an important member of UNIDO. There are many forms of natural, agro and human resources in Sri Lanka. Notable progress has been made by Sri Lanka in increasing its per capita income and poverty eradication," he said.

"The World Economic Forum, in its global competitiveness report has described Sri Lanka's economy transitioning from Factor Driven stage to Efficiency Driven stage.

UNIDO is ready to move ahead with the Lankan people and the new government," Yong said.

"No single country in this world has reached the highest stage of economic development without developing its industrial sector.

"I appreciate your government's support at the 15th Conference in Lima in which we passed the Lima Declaration where Inclusive and Sustainable Development was operationalised," he said.

"We have implemented 89 projects and programs in Sri Lanka during our 40 years in Sri Lanka.

And six UNIDO projects are in the pipeline for Sri Lanka that include industrial parks, climate change, chemical and waste management and leather processing,” Yong said.