Budget 2014 - CNCI focuses more on industries

By Lalin Fernandopulle

The chambers that represent the business community have presented their proposals for the 2014 Budget which will accelerate economic development through a vibrant business environment in the country.

The Ceylon National Chamber of Industries (CNCI), Chairman, Gamini Gunasekera said that the chamber has called upon the government to address the skills mismatch by bringing industry needs to the education curriculum. Skills mismatch is a huge problem affecting productivity and industrial growth. The chamber hails the move by the Government to allocate Rs. 306 billion for education.

“Harmonising the complex documentation process and introducing an electronic cargo clearing system is vital for industrial development. We have called upon the government to simplify the documentation process for setting up businesses,” Gunasekera said.

CNCI has also called upon the Government to expedite legislation against anti-dumping and countervailing to protect local industries.

The chamber wants duties and cess to be imposed on imports to encourage domestic industries. “We seek a further reduction in interest rates for industries. High interest rates have impeded growth of small and medium scale industries,” Gunasekera said. The Central Bank cut key policy rates by 50 basis points recently. CNCI has proposed to have robust policies for SME development.

Thailand, Philippines and Malaysia have introduced such policies for SME development.

Around 70 percent of the country's entrepreneurs are in the SME sector and around 90 percent of the industrial establishments are small and medium scale enterprises.

Industries in Sri Lanka face problems to recover default dues from small and medium scale customers due to poor litigation practices in the country.

The litigation process in the country is slow. An effective litigation process is vital to expedite recoveries.

CNCI plans to conduct a series of educational and training programs for industrialists on proper industrial practices to minimise the impact of industrial pollution and disasters.

Around 6,000 factories operate in the Gampaha district of which nearly half are chemical-based factories.

Less than one percent of the factories do not use proper handling and disposal methods during production.

Lack of awareness on proper discharge of industrial waste has created major problems for industries around the world.

The Rathupaswela and the Piliyandala factory problems would not have triggered had there been a proper transparency and continuous dialogue between the factory and the community,” a chamber official said.

The CNCI Achievers awards, the flagship event of the chamber, is held every year to recognise and reward manufactures for their performance and contribution to the economy.

A hallmark of the event is that all Sri Lankan enterprises operating their manufacturing and service industries in SAARC countries such as India, Pakistan, Bangladesh, Nepal and the Maldives are also awarded, while the SAARC Country Industry specific industries who apply through their respective Chambers of Industry and Commerce are also eligible to apply for the awards. The CNCI establishes closer affiliation and bilateral relations with all SAARC countries and to set up friendly ties with the overseas industrial counterparts. Secretary General and CEO of the CNCI, Kumara Kandalama said that a large number of applicants including those from the North and the East take part in the Achiever

Awards. Industrial sectors such as paints manufacturing, food processing, rubber and plastics, leather and foot wear, building construction, electrical and appliance manufacturing, light engineering, machine manufacturing, glass and ceramic, rubber products including rubber based automotive parts, gem and jewellery, tyre manufacturing, roller shutters and doors, roofing materials, spice products, poultry and processing, agriculture products, polymer products, hydraulic, road construction, tea processing and packaging, coir, batik, automobile and vehicle assembly and manufacture, biscuits and related food products, insurance industry plus the leisure and entertainment sector enterprises take part in the event.

“We have lined up a series of programs to support industrialist in the North and the East next year,” he said.