Sri Lanka’s President announces host of proposals to boost industrial sector expansion
Daily FT: President Ranil Wickremesinghe has announced a host of initiatives to empower small and medium entrepreneurs (SMEs) and boost the industry sector.
Speaking at the inauguration of the first ‘International Industry Expo’ organised by the Industrial Development Board (IDB), the President announced the establishment of a new development bank with the opportunity to obtain loans at low interest rates aimed at providing financial support to industrialists in Sri Lanka.
He also revealed plans to set up an Economic Commission to oversee these activities, along with the creation of a new institution called ‘Enterprise Sri Lanka’ to empower small and medium entrepreneurs.
The International Industry Expo 2024, is the first event of its kind with over 1,000 international industrial entrepreneurs from various countries, along with local large-scale and medium-scale industrialists, who are participating in the event running till 23 June at the Sirimavo Bandaranaike International Conference Hall.
The President highlighted the pivotal role of the manufacturing sector in transition and the need for it to evolve into a competitive and digital economy aligned with the goals of zero carbon emissions and fostering a sustainable economic growth.
Wickremesinghe also noted the obstacles posed by frequent legal challenges to development initiatives and emphasised the need for a consistent national policy to foster progress.
“Some individuals have become accustomed to taking every development initiative to Court, which hinders progress. Our country can only be developed through a cohesive national policy,” Wickremesinghe stated.
The President reflected on Sri Lanka’s economic recovery, stating: “We were once a bankrupt nation. However, in the coming weeks, we anticipate shedding this label entirely. Our focus must now shift to debt repayment strategies, as we aim to settle outstanding loans over an extended period, ideally extending until 2042.”
Wickremesinghe also stressed on the importance of transitioning from an import-based economy to an export-oriented one. “Given that we are primarily an import-based economy, we continually need foreign exchange to cover these imports. Without sufficient foreign exchange reserves, we are compelled to resort to taking loans, which can potentially lead to another economic crisis within the next 15-20 years. Hence, our current focus is on transitioning to an export-oriented economy.”
The expo features 1,307 exhibition booths, including a separate green industrial zone for the first time. Additionally, an experimental academic conference on green industrialisation will be held during the exhibition.
OSL take:
The government of Sri Lanka has taken many initiatives to boost the country’s industrial sector including the introduction of incentive schemes. Sri Lankan authorities also target a growth in revenue generated through the industrial sector. However, Sri Lanka’s plan to boost the country’s industrial sector therefore presents a host of new business/investment opportunities. With Sri Lanka’s ongoing economic activities showing a a clear overall economic expansion and the country’s target of becoming a hub in the South Asian region, Sri Lanka presents a host of new business/investment opportunities for foreign businesses/investors looking at exploring lucrative opportunities in the country.