Projects to strengthen economic stability in the East

The Ministry of Export Development and International Trade is exploring the possibility of setting up three projects in handloom weaving, rice production and growing turmeric in the eastern province to increase the income of the people.

Export Development and International Trade Minister Prof. G. L. Peiris said that with the eastern province being liberated by the government forces people need economic stability to establish themselves and these projects will help them achieve this goal.

The Ministry is targeting an export revenue of US$ 7.8 billion this year and are confident of achieving the target, the minister said.

The country has achieved a 14.4% growth in the export sector during the first five months of this year.

The total imports have exceeded USD 1 billion during this period. Robust growth in exports and imports reflect the economic growth in the country, said the minister. The main aim of the government is income distribution throughout the country which will help all districts to develop.

Per capita income in Sri Lanka is now USD 1,320 and therefore we are no more classified as a least developing country. But this does not mean that every Sri Lankan gets the same per capita income. Therefore the ministry is trying to strengthen the rural economy by setting up export villages, he said.

During this period exports to USA increased by 11 percent, UK by 18 percent and Germany by 42 percent.

Exports to Italy showed a significant growth of 54% while exports to France and the Netherlands increased by 30 percent during the first five months of this year. Exports to Russia and Iran too have increased but exports to India have declined.

The Ministry is also focusing on exporting the services of professionals to increase the country's export earnings. Last year the country earned US$ 2,450 million through foreign remittances while the country is targeting USD 3,000 million this year.

SG