Sri Lankan government to sign MoU to link Export Production Villages with international markets
The government of Sri Lanka has decided to grant approval for two State Ministries to sign a memorandum of understanding (MoU) to take forward a project initiated by the government to link selected Export Production Villages (EPVs) with international markets.
Accordingly, Sri Lanka’s Cabinet of Ministers has approved the proposal by Sri Lanka’s Foreign Affairs Minister Dinesh Gunawardena to enter into a MoU between the State Ministry of Samurdhi, Home Economy, Micro Finance, Self-Employment and Business Development and the State Ministry of Regional Cooperation.
According to local media reports, the MoU is expected to implement the project ‘Linking Sri Lankan Villages with the International Market’, through an institutional network that can build a mechanism which covers all districts of the country.
The MoU follows an earlier Cabinet decision in November 2020 for a national programme to establish EPVs that will include linking up existing agriculture, fisheries and services sectors to export companies.
The Cabinet of Ministers had then approved a proposal presented by Sri Lanka’s Trade Minister Bandula Gunawardena to implement the EPV programme.
This programme will have the dual goal of developing rural production within a formal enterprise model and link those with the export supply chain, as well as to upgrade local production industries as import replacements.
“The Government aims to establish cluster villages making similar products for export and provide opportunities for them to be exposed to the market as well as provide opportunities and support for the producers to minimize the issues they may face when starting a formal business or exporting goods,” Sri Lanka’s Government Information Department has noted in a statement.
Furthermore, it has been planned to establish EPVs covering agricultural, fisheries, mechanical and services sectors so they will have a sustainable additional income by entering into future trade agreements with top-level export companies.
Accordingly, the Cabinet of Ministers conceptually approved the resolution furnished by the Minister of Trade for implementing the proposed programme utilising the required allocations from the Sri Lanka Export Development Board (EDB) subject to the guidance of the Ministry of Trade.
OSL take:
Sri Lanka’s exports sector continues to show strong signs of rebounding despite global Covid 19 challenges. In fact, the country’s manufacturing exports sector continued to operate during the Covid 19 lockdown. The Sri Lankan authorities having seen the growth potential in the exports sector continues to offer incentives and other mechanisms to further boost the sector. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have added to the benefits enjoyed by Sri Lanka’s exports sector. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s exports sector.
| Article Code : | VBS/AT/20210120/Z_3 |