GOVERNMENT MULLS END TO PRIMARY EXPORTS

[National Chamber of Exporters of Sri Lanka]

Dear Member,

GOVERNMENT MULLS END TO PRIMARY EXPORTS

We are reproducing below a media report on a statement regarding the
above subject that had been made by the Treasury Secretary, Dr P B
Jayasundera addressing the IT/BPO Industry Chamber.

Quote
“Treasury Secretary, Dr. P. B. Jayasundera said the government was
planning to put an end to the export of raw materials and products in
their primary forms such as Tea, in a move that is not inconsistent
with World Trade Organization guidelines.

"We will soon put a stop to exports in their raw forms without value
additions. This would not be a violation of WTO rules of trade, but an
attempt at creating the economic base," Dr. Jayasundera said last
morning addressing the IT/BPO industry chamber.

He said this would be an important step in creating meaningful
employment opportunities.
"For a long time we were talking about tea, tea and tea. The industry
exports tea in its primary form, employs unskilled workers and
occupies half the land. It needs to diversify and create value added
brands, only a few are doing this," he said.

Dr. Jayasundera said the one billion dollar industry had no scope for
improving further unless it diversified and created value added
brands. In contrast, the apparel sector had showed tremendous growth
while creating value chains despite disturbances it has to face. Its
domestic value addition is over 50 percent.

He said the government was committed to creating an enabling
environment that would create ten industries that would earn US$ 1
billion by 2016. Raw material import duties were slashed recently in a
bid to giving the manufacturing sector a boost.”
Unquote

Members who have any views related to this announcement are kindly
requested to forward same to the Chamber.

With kind regards,


L S G Tillekeratne
DIRECTOR MEMBER SERVICES & NEW PROJECTS