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President Gotabaya Rajapaksa |
President Gotabaya Rajapaksa yesterday commended exporters for not only recovering to pre-pandemic levels, but for reaching record highs, insisting that they have a key role in leading the economy towards prosperity in the post-COVID era.
“I congratulate the export companies for being recognised at this event for their outstanding performance in the last two years. I also convey my great appreciation to our export industries more broadly for their continuing service to Sri Lanka’s economy. I warmly commend all who contributed to this great accomplishment,” he said at the 24th Presidential Exporters Awards held yesterday at the BMICH.
The President pointed out that successful exporters have a critical role to lead the country towards prosperity.
“You must use your experience, capability, financial strength and your extensive international networks to create new export markets for existing Sri Lankan products, and to create new Sri Lankan products for us to export. This will be essential for us to create a better future for all Sri Lankans. If everyone strives to work hard and intelligently towards the same goal in the coming months and years, I have every confidence to build strong foundations of a successful and much more prosperous tomorrow for Sri Lanka,” he said.
Rajapaksa also highlighted that the best way for Sri Lanka’s economy to grow in the medium to long term was by creating new export products, whilst expanding into new export markets.
As consumers around the world become more sensitive to the impacts of climate change, there will be increasing opportunities for export of organic, green, agricultural products, he said, adding that once appropriate certification and traceability mechanisms are in place, such exports can be priced at much higher levels than our agriculture sector currently enjoys.
“Sri Lanka has amazing potential. It is blessed with abundant natural resources, an educated and productive workforce, and geo strategic positioning we can greatly benefit from. Several of our export crops, notably Tea, Cinnamon, Pepper and Areca Nut, are considered the finest in the world. We must capitalise on the opportunities to undertake more value addition to these crops prior to export.”
The President also said that infusing more technology to increase agricultural productivity and improve traceability would create further value that would benefit our economy in the long run.
“I strongly encourage you to explore such opportunities that can generate great long-term value to you, while also benefitting our nation.”
He said similar opportunities exist around Sri Lanka’s many mineral resources too. “We should phase out exporting these minerals to more advanced markets in their raw form and export after value additions. We must focus on developing value-added industries around them domestically,” he suggested.
In addition to investing in these areas, President Rajapaksa said businesses and entrepreneurs should foster partnerships with leading global companies that can transfer the technology needed to develop advanced industries around these resources in Sri Lanka.
He also said export diversification in Southeast Asian countries had greatly contributed to their improved economic performance over decades, pointing out that there was no reason for Sri Lanka not to follow suit.
“The Government and the private sector must work hand in hand to make this happen. The Government will play its part by supporting and facilitating new initiatives proposed by the private sector, and by providing attractive incentives for foreign direct investments (FDIs) into strategically important industries. We will also ensure that remaining impediments to the performance of export industries will be quickly resolved.”
The President highlighted that one of the most significant issues Sri Lankan industries face is the high cost of energy.
“It is sad that despite being blessed with many sources of renewable energy, so much of Sri Lanka’s power is generated through fossil fuels. This not only greatly increases the cost of power supply but is also very harmful to the environment.”
Noting that he has set a clear target for Sri Lanka to generate 70% of its energy from renewable sources by 2030, Rajapaksa said that with a concerted effort by all stakeholders it may be possible to achieve this target even earlier, thereby ensuring that Sri Lankan industries enjoy the benefit of cleaner, cheaper power soon.
He also assured to fast track the solutions to other issues necessary to create a more conducive environment for business, including streamlining regulations and maintaining policy consistency, and assured that it had been asserted to all Government agencies as a high priority going forward.
The President also cautioned the exporters on the continued COVID-19 raging across many parts of the world.
“Some European countries are considering lockdowns in the weeks ahead to avert more deaths taking place on a large scale. This could affect the recovery of our tourism sector, as well as global demand for our exports. Global supply chain constraints are also affecting nearly all industries today. Rapidly rising energy costs and freight costs are contributing to shortages and higher prices world over. In fact, global price levels have now reached record highs, with many regions experiencing their worst inflation figures in nearly three decades.”
Rajapaksa said the economic consequences of these ongoing issues would continue to impact Sri Lanka in the months to come and therefore managing this situation and keeping the country on the path to prosperity would require policy interventions – especially in the short term – that may be unpopular.
“I know that many of you are critical of these interventions. But I urge you to recognise and understand that these measures are being imposed because we have little other choice in our present situation. Once the immediate crisis is overcome, some of these interventions can be mitigated,” he asserted.
He however outlined that several policy interventions such as the restrictions on certain imports in place since last year have had beneficial consequences. “These measures have created space for new local industries to develop. It is essential that these new industries are fostered intelligently.”
The President pointed out that instead of short-term profiteering through reducing quality and creating artificial shortages, these new industries should strive to create quality products that could become globally competitive.
“This will be to everybody’s benefit,” Rajapaksa said.
