OPA lists 17 ways for economic resurgence in a crisis

From left: OPA Committee for Development and Sustenance of Foreign Exchange-based Sectors Chairman Ruwan Gallage, OPA President Dulitha Perera, General Secretary Eng. Upali Jayawardena, President-elect Ruchira Gunasekera, and Immediate Past President Eng. Shantha Senerath 

The Organisation of Professional Associations of Sri Lanka (OPA Sri Lanka) last week unveiled to the media 17 proposals which it believes can help the country achieve much needed economic resurgence in a crisis environment. 

The proposals were the outcomes from the OPA’s Committee for Development and Sustenance of Foreign Exchange-based sectors of Sri Lanka. It submitted short and medium-term proposals to the Central Bank Governor focusing on measures which would pave the way towards development and sustenance of Sri Lanka’s foreign exchange based sectors. 

OPA Sri Lanka President Dulitha Perera at the media briefing said the 17-point proposals were a result of the Executive Council foreseeing the problems Sri Lanka’s economy is facing today. In December 2020, the OPA formed its Committee for Development and Sustenance of Foreign Exchange-based Sectors of Sri Lanka. 

“While we see some of the measures the Government has adopted are in the same line of thinking as proposals submitted by OPA, we will continue our efforts to provide our expertise and recommendations to the incumbent regime. He pledged support of its esteemed professional network to support the aforesaid agenda,” Perera said.

One of the short-term initiatives proposed included is to establish credit-lines extending to long years with countries from which major levels of imports are prevalent. It was proposed that it is necessary to re-negotiate prevailing Free Trade Agreements with neighbouring countries to enhance exports with quota allocations based on increased shipping costs due to COVID-19 pandemic issues. It was also proposed to have provided short term incentive for exporters holding US$ funds at Banking institutions to release the same, providing them with an incentive scheme to overcome the current impasse on US $ limitations.

The Committee deliberated that the Government must also take steps towards establishing an “Export industry-based Ombudsman’s office” to assist exporters to overcome issues relating to funding and other matters of concern. 

Explaining the potential for expansion of the apparel export sector in Sri Lanka, the Committee recommended the establishment of a separate ministry to develop the apparel industry in Sri Lanka. Committee Chairman Ruwan Gallage explained how Sri Lanka could use Bangladesh as its case study to help realise this goal. The proposal also covered its recommendation for creation of an authority to develop the spice industry and develop Free Trade Agreement based export of spices upon suspension of imports of spices similar to what was done with regard to turmeric. 

It was further observed that a special concession such as interest free advances and credit guarantees by the Government to be offered to SME exporters mainly in the apparel sector thus seeking enhancement to existing export markets and that such exporters to be absolved of CRIB issues for export-related funding. 

The inflow of foreign currency relating to sale of gems and jewellery, is another potential means of supporting the resurgence agenda for which a promotional exercise a scheme similar to “Convertible Rupee Accounts-CRA” prevalent in the seventies for a portion of funds received by the exporters is recommended to be introduced.

Gallage also explained how Sri Lanka could also seek enhanced employment quotas from countries such as China, Korea, Japan, Middle East, Israel, etc., that would contribute to improve foreign remittances. Likewise, to initiate appropriate measures to recover employee dues through relevant country authorities where Sri Lankan employees have been subjected to a “wage theft” based on COVID-19 pandemic. Specific measures to be introduced by the Government, to recover such wages of the wage earners, withheld by the respective foreign employers. 

The proposal also illustrated the requirement for special concessions to be granted to foreign country-based wage earners with no commissions being charged for changing and transmission of foreign currency and home-based delivery of funds to recipients and that the duty-free allowance at port of entry upon serving in a foreign country to be enhanced to ensure that the foreign currency earned in other countries are brought into the country. 

The recommendations covered proposals to develop the Colombo port which stands at No. 25 (Country wise at No. 15) in international container shipping rankings to the next level with regard to trans-shipments, ship registration process simplification and marketing of bunkering facilities. 

Furthermore, any foreign investor investing in an apartment for a sum of $ 100,000 which has to be equal or more than 50% of the total cost of the apartment, was proposed to be granted a resident visa for two years. For the balance 50% of the cost a Sri Lankan banking institution to enter into a tripartite agreement with the developer and the investor whilst releasing the balance to the developer and granting possession to the investor. 

Further, to OPA short-term proposals, following medium term options focusing on firstly, economic development through the export of high technology products from Sri Lanka, secondly, provision of a new dimension in development of “Medical Tourism” and “Pilgrim Tourism” both, “Western and Ayurvedic” medical facilities to be offered, third proposal being, development of foreign degree offering universities in Sri Lanka to provide resident facilities to entice students from countries such as Maldives, Pakistan, Bhutan, etc. and finally, taking into consideration the number of reputed enterprises which had wound up mainly due to insufficient funding assistance during period of adversity an Act to be enacted to resurrect sick industries based on a similar process as adopted in India was also proposed.

Responding to clarification from the audience, OPA Chief Perera stated that as a primitive step towards supporting the Economic Resurgence agenda OPA did submit these proposals and now OPA will take active measures to reach-out and follow up with those respective policymakers and ministries. In conclusion he re-iterated that its membership is ready to serve and provide its professional input and that its members would avail themselves to serve in any task force or committee that would be formed to help implement these proposals or any other proposals that would go in line with the agenda for Development and Sustenance of Sri Lanka’s Foreign Exchange Based Sectors.