Sri Lanka plans incentives of up to 3.5-pct to spur exports in Coronavirus crisis
ECONOMYNEXT – Sri Lanka is planning incentives of up to 3.5 percent for incremental exports over the next two quarters, which could bring up to 600 million dollars in extra revenues, the South Asian island’s Export Development Board said.
Large exporters with a turnover in excess of 750 million rupees will be paid 2 percent of incremental revenues over the same period last year.
Small and medium exporters will be paid 3.5 percent.
The EDBs proposal was presented to a newly set up Export Development Council of Ministers which is chaired by President Gotabaya Rajapaksa on September 23.
EDB says the scheme is expected to bring additional expected to bring additional export income of 600 million dollars between October 01 and March 2021.
“Although the Government is doing its utmost to alleviate the hardships faced by exporters, they have been adversely hit by the cancellation of orders and declining product demands,” the EDB said.
“However, the exporters are diversifying their production lines grabbing the global new emerging opportunities due to the COVID 19,while some other companies are diversifying markets to avoid the uncertainties.
“Such positive changes can make a progressive difference in the country’s export earnings.”
Sri Lanka’s apparel exporters in particular have been hit by weak demand in Covid-19 hit Western nations but the island had contained the spread of the disease allowing almost normal work to resume. (Colombo/Sept26/2020)