Investor confidence and consistency, key to investment - Minister Kabir Hashim

by Naalir Jamaldeen

“If there is no corruption or bribery in the development projects undertaken by the previous Government, these projects will be continued. We have a clear stance in this regard. All projects will be implemented on a priority basis.

Minister Kabir Hashim when he assumed duty.

We have no idea to stall projects. Projects beneficial to the country and the people will be given due recognition.

We have drafted a mechanism as to what kind of projects, the country needs immediately and what type of projects should be continued for national development”, Highways and Investment Promotion Minister Kabir Hashim said in an interview with the Sunday Observer.

Q: Can you tell us about the present state of the industrial sector?

A: Well, the country started to move from agriculture to industry since the late President J R Jayawardena's era. At present the income from industrial exports has dropped.

When the UNP Government gave up power in 1994, exports as a percentage of the GDP was 32 percent now it has dropped to 16 percent. This is not a healthy situation. Our manufacturing sector should be developed. It is time to consider as to why Sri Lanka has become less competitive in the manufacturing sector compared to other countries in the region.

Q: What is the mechanism that is crucial to attract foreign investment?

A: Confidence is key - consistency policies and ease to do business. These are some of the key indicators which investors pay attention.

Investors who are to invest in our country will look at how conducive the environment is to invest. There must be transparent forces and quick reaction.

Q: What is your opinion of taking industry to the village?

A: The late President R. Premadasa took industry to the villages by setting up 200 garment factories. The UNP was the pioneer in providing employment to the poor in the rural areas.

Even now we will maintain the same concept. Apart from the Free Trade Zones set up in different parts of the country during the UNP regime, we plan to set up special industries in rural areas for educated youth. We are in the process of identifying suitable areas to implement projects.

Women at work in a garment factory.

Q: The previous government had promised to se tup five industries in each district to address the unemployment problem at village level and to use the resources available in villages to the maximum.?

A: The previous government had many concepts but most of them never got off the ground.

Developing infrastructure facilities and taking investment to under-developed areas is the duty of the Government but first of all, the kind of projects advantageous to the country should be identified.

We are looking at new areas to set up garment factories.

Q: What steps can be taken to improve small industries of the country?

A: This Government plans to take the development bank system across the country.

There will be access to investors for finance. We must encourage local industries and industrialists. There should be a proper development banking system through which small industries at regional level should benefit. We also plan to give technical expertise and proper services to people who are keen to invest in medium or small industries.

The Government will provides services and advice to small and medium enterprises too in the country. Priority will be given to finance and a market for products.

Q: What is your opinion of bringing modern technology to the industrial sector?

A: In the fast developing world modern technology is an inseparable part in the development process. So far this Government is working with China only on infrastructure projects such as concrete development work. We will implement modern technology.

We will obtain high-tech expertise support from China. This is one of way we will support the industrial sector.

Q: What is the present state of the apparel industry? does it have a healthy market? and has the withdrawal of the GSP had any impact on it?

A: No, the apparel market of Sri Lanka is in a strong position. The quality and standard of apparel products are high when compared to most of the countries which export apparel items.

There is a healthy market for the apparel sector globally in the foreign countries. In terms of cost, we are not competitive. The GSP withdrawal will affect the country. But I am sure that is our experience and our capability for capturing a new market in the garment industry will protect and improve the industry.

Q: What steps do you plan to protect the environment and biodiversity while improving the industrial sector ?

A: We will be strict about the Environment Impact Assessment (EIA). We ensure that every industry should strictly follow this concept. Even international projects should follow local environment laws.

Q: Will the new Government continue with the Sampur Coal Power plant project as discussed with the Indian government?

A: This is a subject which has to be discussed at a higher level. Prime Minister Ranil Wickremasinghe will open a dialogue with India to take this project forward.

Q: Is there a program to improve the industrial sector in the Northern province?

A: The Government is committed to develop the Northern province and to create employment opportunities to Tamil youth. After the war we need a proper mechanism to strengthen the reconciliation process in the North.

We are looking to develop the industrial sector in the North because there are plenty of advantages in the North, specially in terms of natural and educated human resources.

Q: Can you tell us about the progress of the Achchuveli industrial zone in Jaffna?

A: I can't tell much of this project. We are looking at certain areas. The BOI is preparing a report for us on the Achchuveli Industrial Zone.

Q: What are the facilities the new Government hopes to give to direct foreign investors?

A: Foreign investors will be given new concessions. Already foreign investors have been given concessions. We are looking to bring the investments which cause no damage to the culture, beliefs and traditions of this country.

But we will always ensure whatever the concessions that are given to foreign investors should create a healthy environment for local industries.

Q: Will the Northern highway project and the Colombo port city project be continued or stopped?

A: First of all the status of these projects should be taken into consideration.

We will build the Northern highways. Both projects have internal issues. Any project that is to be continued should have transparency and proper accountability processes should have been incorporated. If there are allegations about certain projects they should be investigated.

All these projects will be assessed and if they are cleared only then permission will be granted to continue.

Q: Can you tell us about good governance the Government is talking about?

A: The people have the right to inquire about any program or project being implemented. Information will be freely available. People will have access.

People will have the right to give their opinion and they will be a part of the development process.