IDB to set up three regional industrial estates

By Lalin Fernandopulle

The Industrial Development Board (IDB) will set up three industrial estates within the next three years in the North, North Central and Southern provinces, said IDB Chairman Nawaz Rajabdeen.

The IDB comprising around 19 industrial estates across the country is a public institution supporting the development of small and medium scale industries which form the backbone of the country's economy.

SME sector enterprises account for around 80 percent of export revenue and economic growth of the country.

The IDB has tied up with regional and district chambers and private sector organisations to provide expertise, training and buy-back agreements to boost manufacturing of local products, promote exports and save foreign exchange on imports.

Rajabdeen said that the IDB has identified several 'sick' industries and has launched a program to revive them with funding and training to develop products that could compete with international brands.

“Several sectors that need support have been identified at the Achchuveli Industrial Zone and steps have been taken to help theses sectors with the support of regional chambers and private sector institutions, he said.

Of the industrial estates a few still need to be revived.“We have drawn up a program to support these estates through the Ministry of Traditional Industries and Small Enterprises,” Rajabdeen said.

“The IDB will identify and support SME industries to sustain industrial growth.

My vision is to provide industries with new technology and source advanced machinery to increase productivity and quality,” he said. Rajabdeen said that many industries still operate with machinery that are over 30 years old and as a result output and quality of products is poor.

“We need advanced machinery and technology to compete with international brands and boost exports.”

“The IDB will strengthen research and development to facilitate micro to small and small to medium sector industrial growth. Small industries should aim at becoming large manufactures and exporters,” Rajabdeen said. The IDB which operates under the Ministry of Traditional Industries and Small Enterprises, supports a large number of manufacturers of light engineering goods, leather and footwear and dairy products. The IDB will conduct a Small and Medium Industrial Exhibition - SMIDEX 2014 from May 23-25 at the BMICH which will showcase industrial products.

Rajabdeen said that they expect a large number of participants from industrial estates and machinery exporters to the SAARC region.

Traditional Industries Small Enterprises Minister Douglas Devananda is keen to develop the Achchuveli Industrial Estate, a grant from the Indian IDB, and identifying viable industries to create employment and industrial growth in the region.

Foreign buyers showed a keen interest in leather products at last year's exhibition organised by the IDB and the Export Development Board.

They pledged support to provide the expertise to develop the finished products. Sri Lanka lacks technology and skills on the finish of leather products.

Rajabdeen said that an exhibition will be held next year on leather products for foreign buyers. Private-public partnerships are vital to develop industries. The Board is forming PPPs through regional chambers to provide technical support, training, present project proposals and obtain low interest bank loans.

The IDB also marks its 45th anniversary this year.