Trade Minister says export economy key to country’s economic wellbeing

By Saman Indrajith

Trade Minister Dr. Bandula Gunawardane told Parliament on Tuesday (20) that the strengthening of the export economy was vital for solid economic growth and to balance macroeconomic variables of the country

 Presenting several orders under the Export Development Act for the approval of the House, Minister Dr Gunawardane said that the Ministerial Council on Export Development established to develop the export sector in the country had not met for 28 years. However, after 28 years the council had met under the chairmanship of President Gotabaya Rajapaksa.

 “This ministerial council on export development is supposed to consist of all ministries that are directly linked to our export items such as the Ministry of Agriculture, minor exports and so on. This council is expected to evaluate our export sector, propose policies, draw an export development plan and then establish and monitor export development authority. Most unfortunately this council has not met for 28 years. The last time this council met was during the time Lalith Athulathmudali was the Minister of Trade in the country. For moving ahead, we first need some orders approved regarding the Export Development Act so that we can utilise the Export Development Board and the Export Development Fund.   

 “If we look at the history of Sri Lanka, we have been recognised as noble traders in the international market with rich export items. Sri Lanka was a centre for international trade. That is why we were colonised by several foreign nations. However, after colonisation we became a nation dependent on imports. Since Independence there have been several attempts to introduce import substitution policies. That is how industries such as Lanka Loha, Sri Lankan made steel, tyres, textiles developed in the country. During this time, we had no issues relating to our finances. Due to the introduction of the open economy by late President J.R. Jayewardene created a situation which is unhealthy for our local economy. Since then our expenditure on imports kept growing larger than our income from exports.”

 Minister Gunawardena tabled a report prepared by the CINTEC, which is engaged in an experiment to manufacture a battery with locally extracted graphite. “We must be able to allocate a few billions of rupees to develop the export items such as the one proposed by the CINEC. At least 25 percent of the export development fund should be directed to encourage exporters and researchers.”