A discussion aimed at identifying swift solutions to the challenges facing Sri Lanka’s apparel sector, with a view to strengthening an export-led economy and enhancing dollar earnings, was held this afternoon (22) at the Presidential Secretariat under the patronage of President Anura Kumara Dissanayake.
The meeting brought together leading business leaders and investors in the country’s apparel industry. Extensive discussions were held on the practical challenges confronting the sector and the support measures required to successfully implement the Export Development Board’s (EDB) new export strategy.
President Anura Kumara Dissanayake emphasised that the Government would extend its fullest support towards strengthening Sri Lanka’s export economy and outlined the policy measures planned to achieve this objective.
The President further noted that expanding industrial operations into rural areas could significantly strengthen the country’s export economy and invited investors to participate in this initiative. Discussions were also held on a Government-supported “Plug and Play” mechanism, under which the necessary infrastructure and factory buildings would be provided to facilitate investment.
Explaining the current economic situation, the President pointed out that although investments made in Sri Lankan rupees have increased, it is essential to strengthen dollar-earning sectors in order to manage the impact on the country’s foreign exchange position. The President further stated that economic revival could be achieved by increasing dollar revenues while keeping rupee-denominated expenditure under control.
Special attention was also paid to land-related issues faced by investors. The President stated that the Government would intervene to ensure the value of land assets and maintain policy stability, adding that the necessary legal reforms in this regard are already underway.
The President also drew attention to the challenges faced by local raw material suppliers as a result of the Value Added Tax (VAT) system and requested business representatives to promptly submit proposals on alternative relief measures that could be introduced to address these concerns.
Alternative measures that could be taken to expand free trade agreements and increase quotas to increase market opportunities were also discussed extensively.
It was further noted that the National Single Window for Trade is expected to be operational by the end of July this year to enhance the efficiency of trade-related activities, while the National Single Window for Investment is scheduled to be completed by the end of the year.
The President also highlighted the need to strengthen legal and technological mechanisms to prevent illicitly acquired wealth from being transferred out of the country. He further stated that a new law aimed at combating organised crime, while safeguarding public rights, would be introduced in place of the Prevention of Terrorism Act (PTA).
The investors expressed their appreciation to the President for providing them with an opportunity to directly present their concerns. They also requested that a monthly forum be established to enable discussions with relevant officials on issues that may arise in the course of their operations. Responding positively to the request, the President instructed officials to take the necessary steps to facilitate such engagements.
Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando, Secretary to the Ministry of Finance, Planning and Economic Development Harshana Suriyapperuma, Controller General of Imports and Exports Upulmali Premathilaka, Chairman of the Sri Lanka Export Development Board Mangala Wijesinghe, officials representing the Inland Revenue Department, Sri Lanka Customs and other relevant institutions, as well as a number of leading business leaders and investors from Sri Lanka’s apparel sector, were present at the discussion.
