Wednesday, December 12, 2007

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FCCISL to promote local economic development in Moneragala

The eradication of poverty level, full employment and welfare schemes for the average people have become the yardstick for measuring the economic stability of a country today, instead of the earlier gauge of per capita income. 


In short, it would be the reflection of the stable rural economy that would ultimately measure the level of economic progress of a country.
Thus today, most developing countries are focusing their attention on uplifting the economic situation of the provinces – especially regional development, instead of urban development.


The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), the apex organisation of Sri Lanka’s private sector, is not only concerned about putting the private sector on the correct track, so that they would afford the consumer the maximum benefits through proper functioning of the free market economy. They are also concerned about the vital drawbacks of the economy of undeveloped and neglected rural sector.


Moneragala is the poorest district of Sri Lanka where 56% of the population of the district is considered to be below the poverty line. Yet, in terms of resources, Moneragala District possesses a vast resource base where fertile and arable land is in abundance to grow different crops. Different climatic conditions for different cultivations also exist in this particular area. On the other hand, the abundance of water, and the forest cover in the district would attract environment loving visitors – in terms of eco and agro-tourism.


However, it is indeed a pity that with all these vast resources, Moneragala has been classified as the poorest district in the country. Further, on top of all these conditions, there are problems faced by the agricultural community, specially pertaining to market linkages.

One example is the lime cultivation. During certain periods, large quantities of lime are dumped in the market, as the necessary processing technology for preservation is not available in the area.


  This is the background, economic potential and the current status of the Monaragala District. 


If one looks at the composition of industries and businesses in this district, it would appear that more than 50% of the enterprises are agro-business and agricultural farming.  In the case of agro processing, the largest sugar processing factories are situated in Monaragala – Palwatte and Hingurana. Micro and small enterprises are also there, but medium sized enterprises are small in number.


FCCISL has identified the problem and as precursor, established its local District Chamber in Monaragala a few years ago, in order to help and facilitate the business and the economic development in the district. 
CEO and Secretary General Samantha B. Abeywickrama said that they have received some funding support from the USAID. He added that later they were able to procure new support from the Norwegian Government, through NORAD – the development arm of the Norwegian Government. They have given financial support for the development of business and economy within the district.


  Now, FCCISL has negotiated with the Economic and Business Development Ministry of the Norwegian Government for a comprehensive, structured enterprises development programme for the Moneragala District and the Norwegian Government has consented to provide financial support. It covers several important economic development aspects of the area.


The key components of the project are as follows: Development of macro and small enterprises by providing necessary business development services and facilitating credit and finances; develop technologies necessary for various manufacturing and production processes and most importantly, develop market linkages.


These are for the micro and small manufacturing enterprises involved in agricultural and agro-based industries. FCCISL will introduce post-harvest technologies to facilitate forward sales contracts. They will also improve farming technologies and develop the prevailing informal system.


The other areas to be introduced are productivity and cleaner production technologies.  While entrepreneurship is developed, investment promotion is also promoted in the Moneragala District. The project will also create better policy and regulatory environment for these micro and small businesses to function by expediting the decision making process and also providing access to public sector decision making process.


Efficient services will also be provided in order to resolve business related matters by the district and provincial level authorities.