Sri Lanka’s obligation is to settle their foreign outstanding Debt of USD 36 billion by 2048, said Minister of Media, Transport and Highways Dr. Bandula Gunawardhana addressing at the National Automotive Conference held at Marini Beach Hotel Colombo on Tuesday.
“Out of this amount 37% would be settled within 5 years, 51% within 6 to 20 years and 12% within 20 to 25 years” Minister Dr. Gunawardhana added that whoever political party that rules the country, the debt settlement is compulsory within the agreed time frame.
“Therefore the only solution towards settling debt is to earn more and also reduce spending Dollars.“We need to adapt to an export – oriented economy and strengthen foreign reserves,” he said.
Minister Dr. Gunawardhana pointed out that the foreign reserve in Singapore (which is smaller than Sri Lanka) is 763 billion Singapore dollars whereas in Sri Lanka it stands at around 3.5 billion. He said the reason behind this is that Singapore’s economic policies cannot be changed or manipulated by political influences. Minister further identified two reasons for Sri Lanka’s bankruptcy. “One is that Sri Lanka has been continuously maintaining a budget deficit that is unsuitable to the country. The other reason being the balance of payment; where export revenue is less than import expenditure.”
The conference was organized by the Industrial Development Board with the participation of key private sector stakeholders in the automotive industry in Sri Lanka in partnership with Ministries of Industries, Transport & Highways, Finance and Environment, Industrial Development Board and Sri Lanka Customs. Dr. Gunawardhana emphasized to the top entrepreneurs of the automobile industry who attended the event to focus heavily on exports. He also appreciated the local automotive industrialists for their excellent performances with regard to new product innovations and capturing the export market to some extent.
Minister of Industries Dr. Ramesh Pathirana, said that the automotive industry in Sri Lanka has set an objective to become the nucleus of the supply chain in Asia by 2035. Secretary of Industries Ministry Thilaka Jayasundera, revealed that most of the manufacturers in Sri Lanka depend largely on imported raw material and in the case of the automotive industry the government plans to open up automobile component manufacturing facilities. She invited investors to make their proposals to the ministry in order to provide facilities.
“In view of the government’s vision to make Sri Lanka an export – oriented country, Sri Lanka Customs have introduced a special incentive to local manufacturers to import raw material, machinery and intermediary products absolutely free of duty,” said Additional Director of Customs Achala Chandrasekare.
CLAUDE GUNASEKERA