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Saturday, 19 May 2012 01:25 - - {{hitsCtrl.values.hits}}
Introducing a much-sought-after measure of relief to Sri Lanka’s boating industry, the country will now introduce tax on boat imports that are largely duty free.
“The duty free boat imports were allowed by the Government in the aftermath of the tsunami to rebuild the fishing industry, but this has now adversely affected the overall boating industry since many vessels, including sub-standard boats, are imported duty free, dealing a blow to our $ 500 million boating industry’s competitive advantage. Having listened to the representations made by the representatives of the boating industry, I together with my officials have now decided to introduce taxes on boat imports from 2013 so that the emerging sector can forge ahead successfully,” revealed Minister of Industry and Commerce Rishad Bathiudeen yesterday, after opening an exhibition promoting the boating industry at the BMICH.
“With the consultation of the Ministry of Finance, my officials will start formulating the relevant proposals targeting the 2013 Budget,” he added.
‘Boat Show 2012,’ which drew a large number of boating industry players and buyers along with boating enthusiasts and industry professionals from many countries, is on until Sunday.
A large number of boating industry players and buyers along with boating enthusiasts and industry professionals from different countries such as India, Pakistan, Maldives, Bangladesh, Singapore, South Korea, China, Germany, Netherlands, UK and USA among others are scheduled to take part in this international event. Also on display were the Sri Lanka Navy’s commercial boating ventures.
Addressing the event, Minister Bathiudeen explained: “Our international reputation for boat building was confirmed recently when Seychelles announced that it looks towards Sri Lanka as its boatbuilding hub. This great news was conveyed by Foreign Minister of Seychelles Jean Paul Adams when he visited me in April. This global recognition is a sign of the real potential of our boat building industry.”
Noting that boat building in Sri Lanka is an emerging export sector that continues to expand due to the wide variety of products and services it is capable of offering to international markets, he said that its total annual production value now exceeds $ 500 m, which includes boating industry services as well. There are around 25 active boat yards around Sri Lanka producing various types of boats and about seven boat yards currently export their products.
The best known sail-maker in the world, North Sails, operates a factory in the Biyagama Investment Promotion Zone. The export value of boats manufactured in Sri Lanka doubled in 2009 to US$ 58 m from $ 22 m in 2008. In 2010 the value of boat exports was US$ 59 m and in 2011 it has reached US$ 149 m, which is a 149% increase.
“I believe is a very promising growth rate for any industry in the country. With the dawn of peace in Sri Lanka due to the leadership of President Mahinda Rajapaksa, the expansion in the economy and specifically, tourism industry expansion, have also resulted in renewed interest in boating, specially the leisure and pleasure boating sector. I am glad to announce that my Ministry is willing to support marina development in Sri Lanka through the very institutional mechanism of the Ministry. My Ministry, with our industry participation, has already set up an advisory committee on boat building sector and has obtained allocation from treasury to conduct a feasibility study on setting up a dedicated boat park. Also, the 2012 Budget has provided the much-needed relief to the export production sector and I am happy to note that our boating industry also can reap these benefits.”
Neil Fernando, a pioneer boat builder and Chairman of Boat Building Technology Improvement Institute (BTI), addressing the event said: “Sri Lanka has now earned a place in the prestigious International Boating Industry Magazine. International visitors are surprised to find such a large number and variety of boat production taking place in Sri Lanka. Among our boat industry sub-sectors, the commercial boat producers are increasingly picking up strong international orders. These are mostly from Asia, Africa and Middle East, despite the global recession. Buyers are now demanding more fuel efficient, cost effective boats, towards which we should gear our processes.”
“We need funding for research and development to advance the industry. We also need infrastructure such as boat marinas to develop the sector. I am confident that the private sector will invest in this effort. I would like to extend my sincere appreciation to the Ministry of Industry and Commerce and the Minister for their sincere efforts in identifying our boat industry as a thrust industry and strongly facilitating its development. The Export Development Board and the Ministry of Fisheries also played a vital role to develop our industry,” he added.
