Sri Lankan government to revive export production villages aimed at developing local exports
Sri Lanka’s Cabinet of Minister has last week approved a national programme to establish Export Production Villages that will include linking up existing agriculture, fisheries and services sectors to export companies.
The Cabinet of Ministers has reportedly approved a proposal presented by Sri Lanka’s Trade Minister Bandula Gunawardena to implement the Export Production Villages programme.
This programme is to 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 minimise the issues they may face when starting a formal business or exporting goods,” a statement by Sri Lanka’s Government Information Department has noted.
It has also been planned to establish Export Production Villages 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.
The Cabinet of Ministers has reportedly 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.
The major objective of the programme was to create employment and enhance the income and standard of living of the rural people in addition to encouraging foreign exchange earnings.
The core idea of the major strategy of the programme is to organise production in villages directly for the export market.
OSL take:
Given the resilience of Sri Lanka’s exports sector in the face of internal and external challenges posed by the global Covid 19 pandemic, the government of Sri Lanka has decided to take further measures to boost the country’s exports sector. The setting up of an export production village would help the exports manufacturing sector. Foreign businesses/investors could therefore explore business opportunities in the proposed export village. Sri Lanka’s geographical positioning in the Indian Ocean, ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country have helped boost the country’s exports sector. Sri Lanka’s exports sector is expected to reach its revised revenue targets for this year.
| Article Code : | VBS/AT/12112020/Z_6 |