Canisius re-elected CNCI Chairman; highlights industrial sector concerns

Canisius Fernando is being garlanded by Pro tem Chairman Rangith Hettiarachchi. Chief Guest Industries Ministry Secretary Thilaka Jayasundara and Additional Secretary Guest of Honour Chaminda Pahiraja are also present 

The Ceylon National Chamber of Industries (CNCI) had its 61st Annual General Meeting (AGM) recently when Chairman Canisus Fernando was re-elected to a second term.

Fernando is the CEO of Aqua Packaging and counts decades of experience in the private sector holding very senior and responsible appointments in several organisations in the country.

Chief Guest at the AGM was Industries Ministry Secretary Thilaka Jayasundara and Guest of Honour was Additional Secretary Chaminda Pathiraja,

Presenting the Chairman’s Review, Fernando pointed out that the country’s Industrial sector has been facing numerous challenges for decades which have taken different forms and shapes with time.  

The thirty year war was among the main reasons.  Now even with a peaceful atmosphere, a conducive environment cannot be seen for industries. In the recent past, we had the Easter Sunday incident in 2019 followed by the Covid-19 Global Pandemic in the years 2020 and 2021.  

In 2022, we faced numerous challenges owing to the FOREX Issue, Energy Crisis, social unrest and political instability.  In addition, the local manufacturers have been facing various challenges owing to competition, natural disasters, labour issues, environmental issues, social and political issues etc. 

At present, the country’s industrial sector is facing the most crucial period with bitter challenges. On one hand, the skyrocketing cost of production with the high interest rates, high cost of materials, higher electricity bills, fuel shortage, power interruptions, increased taxes etc.  

On the other hand the majority of industrialists have lost orders to a considerable extent while local sales have been tremendously decreased with the declining purchasing power of the masses.

“Being in the midst of a circle of repeating challenges, I am certainly proud to witness the courage of our industrialists who run their businesses with all such constraints without losing employment of workers.  We know that many of them are at break even though,” Fernando said.

“We also do have strong concern about the recently proposed tax amendments including the Social Security Contribution Levy (SSCL).   Due to the higher base value used for VAT and SSCL computation we have to pay  almost 67% of the consignment value, which has a very serious hit to the cash flow of hardly rolling businesses.  

“The proposed Tax amendments raise fear and doubts in the minds of local industrialists and create futuristic uncertainty of their business ventures,” Fernando said.

“We do appreciate that the Government is badly in need of resorting to seek income avenues to meet burning ends without printing money which will further aggravate the existing inflationary situation.  

“The proposed Tax Amendments may have been based on the IMF conditions to increase Government’s revenue.  The easiest way for the Governments including that of all the successive governments is to increase the taxes,” CNCI Chairman emphasised.

He questioned the planning authorities concerned of the country as to why they do not take into consideration all other alternate ways and means of increasing the Government’s revenue with minimising waste and eliminating lavish expenses of the Government.