Regaining GSP+ big boost for SL, says Primary Industries Minister

Saturday, 2 July 2016 00:03 - - {{hitsCtrl.values.hits}}

By Charumini de Silva

Regaining GSP+ for the local apparel sector would be a huge boost, a top Government minister said.

Speaking at the ‘Meet the Minister’ interactive session with the business community organised by the National Chamber of Commerce of Sri Lanka (NCCSL), Primary Industries Minister Daya Gamage said: “The local apparel sector through value addition could easily increase foreign exchange earnings with the regaining of the GSP+ facility over the next few months.”

Sri Lanka first received GSP+ in 2005, the same year the European Union (EU) introduced the scheme to help developing countries become more competitive in exports to the EU market. However, in 2010 the country lost GSP+, and the topic of GSP + regained prominence last year after new regime lobbied its case before EU member states for GSP+ readmission for Sri Lanka.

“Around 43% of the export income is generated from the apparel sector and if the previous regime took measures to maintain the GSP+ concession, the industry would have reached a level of $6.5 billion by now,” he said.

He added that the Ministry expects to initiate many new projects related to primary industries which would eventually support expand local production, the market and improve Government revenue.

“We hope to establish 23 high-tech agricultural zones and 10 fisheries zones by the end of this year. Aqua culture is another new area we are looking at. If improved it could generate $5 billion per annum,” Gamage pointed out.

He stated the ministry has initiated a program focused on one million women on home gardening for the export market as well.

The Minister however pointed out that the Government could only support an enabling environment and it is up to the private sector to thrive into these potential markets with value added products and services.

Acknowledging Premier Ranil Wickremasinghe’s vision to make Sri Lanka a knowledge-based social market and export oriented economy, he said that it was important to resolve current issues industrialists are facing in order to fully benefit from the Government initiatives and market expansions.

He called on the National Chamber to submit a report on sector wise classification to address stakeholder issues on a case by case basis.

The next ‘Meet the Minister’ initiative will feature Plantation Industries Minister Navin Dissanayake on 12 July at the NCCSL.