Sunday Sep 22, 2024
Sunday Sep 22, 2024
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The Government is stepping up efforts to resolve issues and devise policies to optimise the growth within the entire industrial sector.
“Steps have been taken to resolves issues identified in 19 sectors due to import restrictions and adverse impacts of COVID pandemic in consultation with the Finance Ministry, the Central Bank and the Customs soon,” Industries Minister Wimal Weerawansa during a meeting with Advisory Council Chairmen and industrialists last week.
The Minister pointed out that the Central Bank had relaxed a large number of import restrictions through the 11 June Gazette notification allowing essential raw materials, whilst agreeing to review and approve other necessary raw materials that were still limited for industries.
Advisory Council chairmen and industry representatives from processed food, value added coir products, value added tea, value added spices, wood and wood-based products, rubber-based products, plastic-based products, automobiles, die and mould metal-based products, ceramic, leather and footwear, cement, chemicals, paints, printing, electrical and electronics, herbal and pharmaceutical, and packaging participated at the meeting.
Industry representatives raised issues related to difficulties faced by them and particularly at banks with delays in transactions and non-issuance of necessary foreign exchange. They also highlighted a number of problems that arise when clearing importing goods through the Customs.
In the second quarter of this year, the industrial sector which accounts for 27% of the GDP grew by 22.1% as opposed to 23% contraction in the corresponding period of last year.
However, according to the Central Bank compiled Purchasing Managers Index (MPI) the resurgence of the COVID-19 pandemic in August 2021 has slowed down the manufacturing activities in the country. The manufacturing PMI recorded an index value of 45.1 in August 2021 with a fall of 12.7 index points from the previous month, mainly driven by the decrease in New Orders, Production, Employment, and Stock of Purchases sub-indices.
The newly-set-up Advisory Councils are tasked to discuss issues relating to relevant industries and joint private sector programs with the Government for the development of industries, as well as advise the Minister on the effectiveness of the measures taken for the promotion of relevant industrial sectors.
The industry representatives commended the proactive measures taken by Minister Weerawansa especially through the Advisory Councils, adding that that lack of proper coordination between the line ministries, other relevant institutions and industrial sector representatives, had caused various issues and unnecessary delays in the planning and implementation process of industrial development in the past.
The broader objective of these councils will be to get industry leaders’ inputs for the preparation of development plans, and recommendations based on new budget proposals, to upgrade technology and develop value chains to compete in the global market, utilising the available foreign and local assistance programs.
Industries Ministry Secretary (Retd.) Gen. Daya Ratnayake and Additional Secretary S.L. Nazir were associated with Minister Weerawansa at the meeting.
