Sri Lanka Trade

OBJECTIVE OF PROMOTION AND DEVELOPMENT OF EXPORTS

The objective of promotion and development of exports is the enhancement of foreign exchange earnings:

(a) to accelerate economic growth and create employment;
(b) to solve the balance of payments problem; and
(c) to reduce the dependence on foreign aid.

A. MACRO - ECONOMIC STRUCTURES AND POLICIES:

1. The Government will endeavor to maintain a realistic exchange rate in order to retain the competitiveness of the export sector vis-a-vis the trading partners and competitor countries.
2. The Government will ensure for exporters (direct and indirect) unrestricted and duty /tax-free access to imported inputs (raw materials, packaging materials. Consumable, raw material and finished product samples, technologies including design specifications, machinery, equipment, accessories, technical advice, training, etc.).
3. The Government will work towards making available finance ( medium and long-term as well as short-term) at internationally competitive rates.
4. The Government also will endeavor to provide expanded access to financing particularly by developing substitutes for physical collateral and strengthening the capabilities of financial institutions to evaluate projects on the basis of viability.
5. The Government will adopt (as stated in the Strategy for Industrialisation) all measures necessary to develop the capital market including the popularisation of Unit Trusts, Venture Capital Companies and the provision of incentives for the purchase of stocks and shares.
6. The Government will, as stated in the Strategy for Industrialisation, the take steps to ensure that the export sector is as competitive as the other sectors of the economy by constantly reviewing and lowering the import tariff and phasing out export tariffs, (except where there is need to promote further processing of local materials) so that resources may flow into the export sector and other sectors on the basis of comparative advantages.

B. PROCEDURES AND DOCUMENTATION:

7. The Government will adopt suitable measures to streamline procedures and documentation to :ensure as far as
possible automaticity (as already stated in the Strategy for Industrialization) in regard to :

(a) import of inputs for production for export;
(b) export of goods and services;
(c) release of foreign exchange for purchase of inputs , travel, setting up of offices abroad, payments to expatriates,

remittance of profits. Etc.

(d) approval of applications for projects, sites. Plans, etc.;
(e) land leases and grants;
(f) grant of incentives;
(g) taxes and levies.

C. INFRASTRUCTURE

8. The Government will give the export sector (direct and indirect) priority in the provision of public utilities and services in the following areas. The Government will also ensure that such h facilities are provided at competitive rates particularly by encouraging the private sector to provide such facilities/ services :

(a) transport, sea/ air freight;
(b) telecommunications;
(c) water supply
(d) electricity and fuel supplies,
(e) R & D facilities;
(f) quality control/ standards;
(g) Packaging;
(h) industrial estates/developed plots.

D. GOVERNMENT ASSISTANCE:

9. The Government and agencies of the Government will assist the export sector (direct and indirect) in -

(a) identifying export markets;
(b) Providing information on the needs and specifications of export markets;
(c) catering to the needs of the export market through sub-contracting, training, acquisition of technology, packaging,

quality control, etc.;

(d) securing orders;
(e) marketing of goods and services;
(f) setting up of export trading houses;
(g) offering incentives to the private sector to provide export services; and
(h) improving management capabilities to increase efficiency and improve productivity.

E. GOVERNMENT RECOGNITION :

10. The Government will recognize the role of the private sector in export development through the following measures:

• ensuring the free export of all products and services other than products and services which, in the opinion of the
  Government, should be prohibited or restricted for anyone of the reasons like national security, national heritage,etc.;
  and compliance with the country's obligations under multi-lateral or bilateral treaties;
• permitting market forces in determining prices.
• respecting the sanctity of international trading contracts made lawfully in the ordinary course of business and
  ensuring that no impediments are placed in the execution of such contracts and
• refraining from andy prohibitive or restrictive action of a retroactive nature except with the sanction of the Export
  Development Council of Ministers after a proper and thorough study of the pros and cons.

11. All Ministries, Departments and Agencies of the Government shall adhere to the National Policy enumerated above
in carrying out their functions relating to the promotion and development of exports.
12. Annexed hereto are

• Products which are Prohibited or restricted for export
• Items under License Control.