Textile and apparel: Govt pledges to boost exports, forex earnings
During a high-level discussion conducted at the Presidential Secretariat on identifying immediate solutions to challenges facing the country’s apparel sector on Monday (22), President Dissanayake reaffirmed the Government’s commitment to strengthening Sri Lanka’s export economy and outlined several policy initiatives designed to enhance the sector’s competitiveness and increase foreign exchange earnings.
The President emphasised the importance of expanding industrial operations into rural areas. He invited investors to participate in the initiative and highlighted plans to introduce a government-supported ‘Plug and Play’ mechanism, under which essential infrastructure and factory facilities would be provided to facilitate investment, the President’s Media Division (PMD) noted.
Explaining the current economic situation, President Dissanayake stated that while investments in Sri Lankan Rupees had increased, it is vital to strengthen dollar-earning sectors to safeguard the country’s foreign exchange position. He noted that sustainable economic recovery would depend on increasing foreign currency earnings while maintaining control over rupee-denominated expenditure.
The meeting brought together leading apparel industry representatives, investors and senior government officials to discuss obstacles confronting the sector and measures required to support the implementation of the Export Development Board’s (EDB) new export strategy, PMD said in a statement.
Land-related issues faced by investors were also discussed during the meeting. The President assured participants that the Government would take steps to ensure the value of land assets and maintain policy consistency, adding that legal reforms were already underway to address these concerns.
Attention was also drawn to challenges faced by local raw material suppliers under the Value Added Tax (VAT) system. The President requested industry representatives to submit proposals on alternative relief measures that could be introduced to ease the burden on suppliers.
Participants further discussed measures to expand free trade agreements and increase export quotas in order to create greater market access opportunities for Sri Lankan products.
The meeting also reviewed progress on trade facilitation initiatives. It was revealed that the National Single Window for Trade is expected to become operational by the end of July, while the National Single Window for Investment is scheduled for completion before the end of the year.
President Dissanayake additionally stressed the need to strengthen legal and technological mechanisms to prevent illicitly acquired wealth from being transferred overseas. He also stated that new legislation aimed at combating organised crime, while protecting citizens’ rights, would be introduced to replace the Prevention of Terrorism Act (PTA).
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, Imports and Exports Controller General Upulmali Premathilaka, Sri Lanka Export Development Board Chairperson Mangala Wijesinghe, representatives of the Inland Revenue Department and Sri Lanka Customs, along with leading business leaders and investors from the apparel sector attended the meeting.
