Free market economy brought benefits and negatives: Local industries need to be revived, says President

President Maithripala Sirisena on Wednesday discussed various ills of the present Sri Lankan economy, especially the collapse of the export market and the local industries attributing these collapses due to the negative effects of the free market economy, and bad state policy or non-existence of national policies.

He made these comments, when he presided at the inauguration of the 'Sri Lanka Ceramics and Glass Symposium 2015' held in Colombo.

The President noted that it is time to stop dwelling upon the country's 'ancient' prosperous economy, look ahead and plan for the future of which every citizen could be proud of. He said that the open economy had a considerable negative effect on the local industries, as there was a glut of low priced quality products available but were imported.

He noted that economic planners forgot that local people were not concerned whether the products were locally or foreign manufactured, but they went for the quality products. Thus, he stressed that this nation still could not get rid of the illeffects of the open economy and revive local manufacture.

President Sirisena said that there are certain agricultural produce that could easily be grown in Sri Lanka such as cowpea, green gram, ginger and dried chilies in which 75 to 80 per cent is now imported.

The country should realize the grave importance of foreign earnings, he pointed out and politicians, public officials should make appropriate decisions on these vital matters to bring about a strong economy.

Harsha De Silva, Deputy Minister of Policy Planning, Economic Affairs, Child, Youth & Cultural Affairs, said that the exports have deteriorated from 34 per cent of the GDP 10 years ago to a low of 14 per cent now.

He stressed that the export industry should be based on a competitive export market policy and wanted Sri Lanka to take a cue from countries like Singapore where he said that though Singapore does not have a drop of crude oil it has converted crude oil imports to massive exports that make up exports which is 250 per cent of Singapore's GDP.

He said that the Prime Minister had a meeting with garment manufacturers and told them that they would be able to obtain GSP+ again but the government wanted to trickle down a part of that benefit to the workers offering a decent, living wage.

Mahendra Jayasekera, President, The Sri Lanka Ceramics and Glass Council, said that they don't need government protection but what they need is to ensure equal opportunity for their industries to compete in the market.

He said that very cheap imports to the country was jeopardising the market for their products. He urged the government to implement anti-dumping laws that are in place in many countries, even in developed countries.

Accepting the views of President Sirisena, Mr. Jayasekera stressed the importance of firm economic policies rather than political stability, which would attract foreign investors.

He said that this symposium is devoted to uplift the red-clay industry - roofing tile industry in particular. He pointed out that no government has done anything for the development of this industry for last 30 years. He said that they have already established collaborations with a number of government ministries and other agencies to develop this industry by 2017.

They have listed several conditions to be applied to bring this industry in line with exports to make a steady contribution to the economy.