Sri Lankan government assures maximum state support for local industries and entrepreneurs
Chairman of Sri Lanka’s Task Force on Economic Revival and Poverty Alleviation Basil Rajapaksa has reportedly assured maximum state support for local industries and entrepreneurs to revive the economy following the global and local shocks from the Covid 19 pandemic.
Rajapaksa has made this observation during a meeting with a group of local industrialists and entrepreneurs on the way forward post Covid 19.
According to reports, Rajapaksa has assured that the government of Sri Lanka will make it a prioritised policy to control the outflow of foreign exchange, continue import restrictions as much as possible, and if imports are to be allowed due to local or international pressure, the government would provide adequate and necessary protection to local industries.
The government will also prioritise and support local industries and import substitution ventures and production with higher usage of local raw material inputs, he has said.
Local media reports stated that along with manufacturing, other sectors to be supported included plantation, livestock, fertiliser, fisheries and agriculture based industries that can cater to the domestic and export markets.
Accordingly, the Task Force Chief had further stated that pioneering ventures with high investments and reviving existing ventures which could replace imports would be given the support with a backup guarantee agreement by the state assuring protection against imports.
OSL take:
The government of Sri Lanka has expressed full state support for local industries and the incentives and relief offered to the local industries would result in the expansion of home grown businesses. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s local business sector. Given Sri Lanka’s growing business potential due to its geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country, foreign businesses/investors could look at being part of the growing economy in the island.
| Article Code : | VBS/AT/20200601/Z_8 |