Friday Nov 15, 2024
Friday Nov 15, 2024
Monday, 29 May 2023 01:27 - - {{hitsCtrl.values.hits}}
SJB MP Dr. Harsha de Silva gestures during the media briefing yesterday - Pic by Lasantha Kumara
By Darshana Abayasingha
The Main Opposition, Samagi Jana Balawegaya (SJB) yesterday called for urgent support for exports and the Small and Medium Enterprises (SMEs) warning a bigger crisis is looming in the absence of a Government plan for the same.
SJB MP Dr. Harsha De Silva told journalists yesterday his party will unconditionally support any regulations to restructure debt of Small and Medium Enterprises.
“This must be done urgently, and failing to do so could result in the closure of more businesses and job losses over the next six months, he said, and urged the Government to take preventive measures,” he said. The SJB Parliamentarian noted that in an environment of falling order books, SMEs are unable to service their loans and are faced with parate executions as they are unable to restructure debts.
Pointing to the significant drop in export revenue over the past two months, De Silva remarked the Government and all stakeholders must understand the causes and take necessary steps to strengthen export industries. He also pointed to the recent furore concerning the apparel industry, and called on all parties to work together to support the industry as opposed to assaulting them.
“The apparel industry is under severe stress and many people are making it an opportunity to take a shot at them. When the country was suffering and in the throes of crisis it was the apparel industry who fronted the money to pay for oil, medicine and other shipments. If it wasn’t for the apparel industry, we won’t have the income we have today creating hundreds of thousands of jobs alongside. Orders have come down globally due to changes in consumer spending and inventory issues, and this is a global problem. One or two factories have shut down, but many have resorted to furlough schemes and some even still pay special economic allowances. The Government must take stronger measures to protect these industries,” he said.
De Silva called on the Government to reconsider its tax on exports and said a tax of 30% is too high and pointed to the regional average in the range of 22%. He added that the Government should also factor the size of industries and companies when determining such taxes, and called on the state to remove policy deterrents to grow exports. He also called on the Government to renegotiate Free Trade Agreements with countries such as India, which limits apparel exports from Sri Lanka to 8 million pieces annually.
He noted that South Indian economies are the fastest growing in the world, and Sri Lanka must move to take advantage of them. He also pointed to industries leaving China for geopolitical reasons, and called on the Government to do more to attract those investments to Sri Lanka, as many have taken up space in Vietnam, Bangladesh and India. India has a separate unit dedicated to capturing these investments, he noted.
The SJB MP scoffed at reports stating that Sri Lankan apparel companies are leaving to other South Asian destinations and noted that most had set up a regional presence and in places such as Africa over a period of time. He said Sri Lankans must take pride in these local multinationals. De Silva said open capacity in Sri Lanka, Vietnam, Bangladesh and other countries have given rise to an intense price war, and it is imperative to consider efforts to boost productivity.
“Automation is a reality that is taking place all over the world and that drives productivity up. This is happening in the rest of the world and even in Sri Lanka. There will be a certain impact on jobs and we need to have a plan for that. The IMF plan is one that discusses stability and does not factor how we will achieve growth.
“The Government must have a plan for that and look at schemes to grow employment opportunities. The construction industry is flat. Many jobs have been lost there. Vietnam and Sri Lanka were on an equal footing for just over a decade, and they have achieved exponential growth whilst we are stuck in the same place. There is no plan to grow the country,” he lamented.
The SJB MP also stressed on the importance of GSP Plus to maintain the little edge Sri Lankan exports have into the European Union, and remarked the western bloc had expressed concern over Sri Lanka’s proposed counter terrorism law that he said will impede basic freedoms. It must not encroach on people’s freedoms, and if Sri Lanka loses GSP Plus over it that will become a further serious concern, he stated.
De Silva also reiterated the need to rebuild trust with nations such as Japan, and pointed out there is so much Sri Lanka could achieve together with Japan that could become mutually beneficial. Many Japanese investments have left Sri Lanka due to the short-sighted policies of the Government, he said, and expressed hope the president would take the necessary steps to rebuild that trust and set up the necessary infrastructure and environment to woo Japanese investors back.
