Govt. in rural industry push to provide jobs

Friday, 4 July 2014 00:00 - - {{hitsCtrl.values.hits}}

Land to be taken over for zones around the country, hopes for 5,000 new jobs
New measure to offset 15,000 vacancies in Free Trade Zones
Longer leases offered for companies, 42 applicants already

By Uditha Jayasinghe Taking a new path to boost rural employment, the Investment Promotion Ministry will spearhead smaller industrial zones in outlying areas. Under this new measure proposed by President Mahinda Rajapaksa, fresh land is being acquired around the country including Kalladi, Puttalam, Kilinochchi, Matara, Hakmana and large tracts of land in Hambantota, Investment Promotion Minister Lakshman Yapa Abeywardena told the media yesterday.

The Government hopes that moving industries closer to villages will offset significant employment shortages being experienced in conventional Free Trade Zones such as Katunayake, Biyagama, Koggala and Seethawaka. “There are nearly 15,000 job vacancies in these Free Trade Zones due to several reasons. One is that most people do not like to work within zones due to socio-cultural reasons. Secondly, many skilled workers have been lost to migration as well as increased recruitment by the Government,” he said. Therefore the Ministry believes moving new industries closer to rural villages will encourage higher employment levels. The move has already received Cabinet approval and the Board of Investment will initiate infrastructure development in the demarcated areas once they are under the Ministry. “Due to the diligent efforts of the Government, infrastructure has been developed in all rural areas. Now it is time for industries to move to these regions. There is no longer any reason to remain only in highly-urbanised areas. We will welcome all proposals and provide quick solutions for them.” The Ministry has received 42 applications to date, with work already commencing on some. The Minister also assured all environmental checks would be done for chemically-sensitive industries to ensure they are kept away from residential areas to prevent an upshot similar to Rathupaswala. “The President wishes us to have at least five industries in each district and we hope to generate at least 5,000 jobs through this venture,” Yapa went on to say. Promoting rural jobs would also take the country closer to the Government’s goal of doubling per capital income by 2016, he opined. The new investment zones will also offer land for longer leases, he assured, pointing out that Mirijjiwala in Hambantota had already undertaken this policy. Out of the 228 hectares that make up the zone, 123 hectares are demarcated for industries. Investing companies will be tasked with training the labour in the villages. Yapa also stated 163 out of the 300 industrial programs undertaken by former President Ranasinghe Premadasa had now been abandoned and the Ministry would approve fresh investments for them. “We are currently identifying the background of these factories. If there are no issues with banks, then we are ready to give them to new investors.”

ADB extends $ 800 m to boost rural economy

Project including $ 106 m contribution from Govt. will seek to connect rural villages to major road networks

1,000 villages to be selected for investment

Rural hubs to be created based on population and development potential

The Asian Development Bank (ADB) has extended a whopping $ 800 million for an integrated road investment project that will span five provinces in Sri Lanka. Sri Lanka would pitch in $ 106 million for the $ 906 million project to connect rural townships and villages to the major road networks in the country already under development, Cabinet Spokesman Minister Keheliya Rambukwella told the media yesterday. The Cabinet of Ministers approved the proposal made by President Mahinda Rajapaksa in his capacity as Minister of Finance and Planning to proceed with loan arrangements with the ADB. According to the rural road connectivity proposal, the Government will select 1,000 villages as rural hubs under the program to create ‘rural hubs’ based on their population and development potential. Five projects will be implemented under the investment program, in the Southern, Sabaragamuwa (and Kalutara District), Central, North Central and North Western provinces. (DB)