By Lakna Paranamanna
The government has allocated more than Rs. 800 million, through Budget 2009, to provide opportunities and enhance local industries, to expand their productivity, in the hope of uplifting them.

“The mainly highlighted fact in Budget 2009 is uplifting the national economy. The government is focusing on invigorating and enhancing Export Industries through providing space and opportunities for local industrialists,” said Minister of Export Development & International Trade, Prof. G.L. Peiris, at a media briefing held yesterday, to shed light on the concessions provided for local industrialists through Budget 2009.

“Some quarters blame the government for increasing taxes and levies on some of the imported items, which includes several food items too. They state that, this measure should be taken only after local industries attain a certain level of improvement and quality. But, I acknowledge that, the more space we leave for imported items in our markets, then, the more we lack scope for local industries to develop or enhance themselves,” pointed out Prof. Peiris while, adding that, if certain boundaries and limits are imposed on importing commodities, then, local consumers would eventually turn to the locally produced substitutes.

“We have provided local Entrepreneurs and industrialists with monetary resources and methods to work on enhancing their Industries,” he remarked.

One concession includes an allocation of Rs. 500 million for the development of Export Promotion Zones (EPZ). “The foreign currency flow into the country has increased by 15% throughout the past few months and these profits should be equitably distributed to all parts of the country,” said the Minister, adding that, it can only be done though establishing projects like EPZs.

He also added that, they intend advertising via the media, inviting opinions of local industrialists and Entrepreneurs on how to enhance and expand their productivity and the kind of assistance the government and its authorities should provide. “We decided to take that step to reduce the ‘middlemen’ from earning those exorbitant amounts of profits. We want to directly approach the industrialists, so that, the people who really deserve the profits are able to obtain them,” said the Minister.

“We have also initiated a new project named ‘One village - one crop’ and about Rs. 300 million is allocated from the Budget on this programme. This project has already been initiated in about nine zones, which cover nearly 23 villages, and we have decided on the projects suitable for different parts of the country. For example, Anuradhapura is reserved for vegetables and fruits, while Polonnaruwa is reserved for aquarium fish.

“We are also working on bringing several potential industries such as rubber, leather and gems into the level of ‘Thrust Industries’, where revenue would exceed US$ 1 billion,” said Prof. Peiris.

Budget 2009 also facilitates for Local Industrialists to create possible new international market scopes, which includes strengthening existing global market contacts and also to venture into new ones. The cost of furnace oil has also been reduced, so that, most local industrialists can lower their production cost and earn more profits. “This results in competition among Local producers and increases the quality of the products, which facilitates products at lower prices,” added the Minister.