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Trade Minister Bandula Gunawardena
By Charumini de Silva
In a bid to boost exports and recognise the contribution of the sector stakeholders, the Government has agreed to pay an incentive of Rs. 30 per dollar earned over the previous quarter to companies that have achieved a minimum progress of 10%.
The fresh move comes hot on the heels of the Central Bank devaluing the rupee against the dollar to Rs. 230 on Tuesday from Rs. 203.
The Exporters Incentive Scheme is expected to generate additional revenue of
$ 5.5 billion in this year compared to 2021.
The proposal to this effect tabled by Trade Minister Bandula Gunawardena was approved by the Cabinet of Ministers at its meeting on Monday.
This was designed to ease the multiple challenges faced by exporters such as high inflation, dearth of foreign exchange, restrictions on imports of raw materials and high operating costs, and to increase the progress in export performance achieved during the last year.
“Export incentives are necessary to encourage and to support the manufacture of competitive products. Export industry is capable of supporting the country to overcome the foreign exchange crisis,” Trade Minister told the Daily FT.
Sri Lanka’s exports in 2021 recorded $ 15.12 billion, up by 23% from 2020 sustaining its resilience, despite an unprecedented economic crisis. The year 2021 performance came second only to $ 15.91 billion recorded in 2018.
Minister Gunawardena expressed confidence to take Sri Lanka’s exports to $ 20 billion or more.
“Exports are the only hope that can pull Sri Lanka out of the vicious cycle of the current account and put it back on a sound economic growth path. I have all the faith in our export community. As the subject minister, I will assure to extend the fullest support to reach greater heights in the next three years,” he said.
