Budget dependent on competent public sector – TEA

Tuesday, 24 November 2015 01:26 - - {{hitsCtrl.values.hits}}

Tea exporters hail proposals to establish blending hub
Say hub key to meeting 2020 target of capturing 5% of $80b global trade
Proposals continent on dynamic State employees for effective implementation

By Uditha Jayasinghe

Tea Exporters Association (TEA) yesterday hailed Budget 2016 but called on a results oriented public sector to assist newly introduced policy suggestions for effective implementation of proposals.

TEA Chairman Rohan Fernando told Daily FT the broad outline of the Budget made the organisation “very happy,” but acknowledged plans to liberalise tea imports and establish a working committee to address falling global prices would require support from a results oriented public sector.

Budget proposals also included measures to tea liberalise imports to create a blending hub in Sri Lanka. Fernando backed industry stakeholders supporting the policy insisting it would help Sri Lanka gain a larger share of the global tea trade.

“The industry has set a target of reaching 5% of the $80billion world trade by 2020 and establishing a tea hub is central to this goal. Currently Sri Lanka has only about 1.8% of the global trade of tea and tea related drinks. We have massive potential in this area,” he said.

Fernando is confident a blending hub will not affect the premium Ceylon Tea category as only about one third of the country’s 325 million kilogram production is exported as top quality tea. He also advocated small and medium factories to improve their quality to offset lower prices in traditional markets of Russia and Middle East.

“The 2016 Budget is one of the most pragmatic, development oriented budgets presented in the recent past. The Association endorses the Government policies outlined in the budget proposal as timely to improve economic strength of the country through enhancing local competitiveness, promotion of investment and international trade,” TEA said in a statement on Monday.

It also praised the Government for providing a number of relief measures to the masses by reducing prices of essential items. The improving of tax administration, aiming at increasing the government revenue while granting concessions, was hailed by the Association.

“TEA is happy that budget proposals address a number of concerns of the Export community. The proposal to appoint a high level body to take policy decisions and clear bottlenecks for successful implementation of export strategies is an important step in the right direction for promotion of external trade.”

The proposed Export – Import bank (EXIM bank) would fulfill a long felt need in export financing requirements of the country. The Association also welcomes the restructuring of EDB, SLECIC and Commercial sections of Sri Lanka Missions abroad to support the export drive of the country.

TEA commended Government initiatives to deviate from previous economic policies and align with fundamentals of the world economy. The recognition of global market opportunities and simplifying taxes to attract investments and focus on private sector driven development strategies are important steps for expansion of economic growth of the country, the statement added.