Saturday, 16 November 2019 09:09

Sri Lanka’s industrial estates grapple to survive

Inconsistent policies on taxes, labour issues, high electricity tariff, lack of export orders, and high production costs are compelling many industrialists to close down their factories at Sri Lankan industrial estates countrywide, the Regional Industriaists Association (RIA) warned.

Managements have begun to shut the factories and fire thousands of workers, blaming the government’s inaction to resurrect the collapsed industrial ventures, RIA said.

Managements have begun to shut the factories and fire thousands of workers, blaming the government’s inaction to help the ailing factories ,a spokesman of the RIA revealed.

However the Ministry of Industry and Commerce makes its contribution through the industrial development programme to diversify the development at regional level

This development was restricted only to developed areas and thereby the ministry took measures to enhance the contribution made by the industrial sector, to the national income.

A sum of Rs.328.76 million had been spent for 33 projects of 18 industrial estates by the Industrial Development Sector of the Ministry in the year 2018 for encouraging the investment in the industrial sector at regionally and providing infrastructure facilities required.

According to the Annual Action Plan, a sum of Rs.25.85 million, out of the provisions totaling Rs.26.11 million made in the year under review for development of infrastructure facilities in 02 industrial estates had been spent.

No physical progress whatsoever had been achieved and 13 projects valued at Rs.165.25 million planned to be completed by the end of the year 2018 under review, had not been completed.

Further, a sum of Rs.11.37 million had been spent for 02 projects which were not included in the Annual Action Plan and a sum of Rs.21.82 million had been spent for 07 projects exceeding the estimated amount.

(LI)

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