National Chamber of Exporters of Sri Lanka

national chamber of exporters of sri lanka

532 / 4K,

Sirikotha Lane, Galle Road, Colombo 03, Sri Lanka

+94 114 651 765

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Exporters submit sectoral proposals to Treasury

The National Chamber of Exporters (NCE) has submitted 2022 Budget proposals encompassing a sectoral perspective of a multitude of export industries.

AGRICULTURE SECTOR

On the issue of following the ban of imported fertilize, Non Availability of Inorganic Direct (Straight) Fertilizers for processing and production of NPK Nutrient Fertilizer Mixtures for Export Market have halted Sri Lanka’s potential to create new Export Revenue for this sector, the NCE has proposed Currently certain Inorganic Fertilizers are permitted for Import and Distribution to Floriculture Exports Company’s.

In the same manner as above requesting State Ministry of Agriculture and the National Fertilizer Secretariat to allow and permit Export Companies to import Direct Fertilizers for the purpose of processing and producing NPK Nutrient Rich Fertilizers only for Export purpose.

Direct Fertilizers used are Urea, Sulphate of Ammonia, Muriate of Potash, Sulphate of Potash, Di-Ammonium Phosphate and Triple Super Phosphate. Use of Inorganic Fertilizer for Processing & Mixing, Labeling & Packing for Export purpose have immense and long term benefits to Sri Lanka as following.

Due to exclusive agreement with certain clients, the export volumes that can be shipped to particular country are limited. However with the use of indirect exporters, we can get away with the legal barriers. We have orders for next year where we can Increase the export volume to different suppliers in same country with separate branding and increase of export revenue by 40%, Registration under various government institutions and renewals All exporters (100% of manufactured volume) who do not have any local sales should get single window approval for Sri Lanka Customs, IRD, Ministry of Industries, Ministry of commerce, Tea/coconut /Specie development Boards, etc. More time to concentrate on production and sales and this will provide an encouragement to all exporters Shipping line space allocation for local products.

Government institution that all locally operating shipping line needs to register where that institution can coordinate with shipping liners and get maximum allocation of space for local exporters Increase in shipments and time delivery of exports from Sri Lanka for better customer satisfaction Efficient laboratory systems are not available for exporters to get their product tested. Prepare a framework for any local manufacture to get to ITI and get his laboratory investigation done within a week. Improve confidence to buyers for the purchases. Currently exporters send their samples to foreign labs and send the foreign exchange out to get these tested done.

FLORICULTURE SECTOR:

The NCE has realized the need for a study on environment and human health impact use of synthetic fertilizer in commercial production

Government research institutions to carry out R&D on current floriculture crops.

Mitigate current problems the exporters are having to produce quality varieties for export market.

Need for a Study on impact of export of Areca catechu, turmeric, ginger and Caryota as an ornamental plants to Sri Lankan bio diversity.

Government research institutions to carry out adequate research before banning current export crops. Recover loss of revenue to the country due to current export ban.

COIR SECTOR

On the issue of shortage of rubber timber supply to the Brush & Broom manufacturing and export industry due to exports of Rubber timber in blocks form at the lower prices.

The NCE has proposed to introduce a Minimum Value addition and connect to CESS. To receive an adequate supply of main raw material – Rubber Timber to utilize the 100% capacity of the local brush and broom Industry.

This is to increase the export turnover from Rs.7,618 million to Rs.15,236 million, to provide more job opportunities by expanding production capacities to receive additional revenue of Rs.1,656 million ( approximately 8.28 million USD) to the national economy by supplying entire rubber raw materials to the local manufacturing industry without exporting them in block form.

This helps local products to be more competitive in the international markets. Currently, the foreign brush manufactures who import Sri Lankan raw materials get a price advantage due to the lower prices that Sri Lankan exporters have offered for the rubber timber in block form.

APPAREL SECTOR

One of the issues is the lack of skilled labour in the industry, due to unavailability of training centers specific for the industry requirements.

The NCE proposes establishing Government training centers to train Machine Operators and other technical staff or three months in-house training for the unskilled employees, with an allowance paid by the Government during the training period. The company will provide job security for these employees with a high salary.The recognition or image building program to the team members of the apparel industry providing services from Government institutions and banks for their needs. To provide incentive to encourage Exporters to engage in Training programs for their Employees.

Limited facilities and opportunities for Apparel Sector workers in securing housing loans and the need to empower & balance the triple burden of female employees Introduce a housing loan scheme at a lower interest rate to Exporter Sector workers from a government bank. Government funded day care centers for Apparel Industry employees.

Source: https://www.dailynews.lk/2021/11/12/business/264429/exporters-submit-sectoral-proposals-treasury

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