200 Garment Factories Programme – the foremost overseas trade earner for Sri Lanka
Success components
- Areas categorised as Non – Troublesome, Troublesome, Most Troublesome and this standards utilized in distributing quotas and grant of Tax Incentives
- Operation of One-stop-shop at BOI
- Use of American Garment Quota distributed as per the mounted standards of space allotted
- Non-public and Public Sectors to work with “Can do angle”and a agency believer of “Stroll the Speak”
On the thirtieth demise anniversary of President Premadasa we should always recognise the foremost contribution made to the financial growth along with his foresight to arrange the 200 garment
factories programme as the foremost industrial growth venture unfold all through the nation creating employment and exports bringing within the beneficial overseas trade to the nation.
One other lesson to be taught is that every one governments continued the garment factories programme which is as we speak the foremost industrial export from Sri Lanka.
Because the Chairman and Director Normal of the Larger Colombo Financial Fee (GCEC) which was in 1991 transformed to the Board of Funding (BOI) of Sri Lanka we had been answerable for the implementation of this very bold 200 Garment Manufacturing unit Programme to be arrange all through the nation
GCEC/BOI
I used to be Chairman of the Folks’s Financial institution and one night I had a name from the secretary finance Mr Paskaralingam who instructed me that the President wished me to take over the GCEC (now BOI). This was fairly a shock for me as I had been Chairman of Folks’s Financial institution below President Jayewardene and continued below President Premadasa and the change meant I needed to begin another time and settle for the problem given to me.
The GCEC/BOI was a really highly effective group which was arrange with the open financial insurance policies introduced in by President J R Jayewardene in 1977 primarily created to approve overseas direct funding for the export market coming instantly below the President and had three main powers of giving Tax Incentives, approval to open a overseas forex banking account and finishing up Customs features for the imports and exports regarding GCEC/BOI corporations.
The idea of the 200 Garment factories programme
It was the late Kumar Dewapura who was the Chairman of the Tri Star Group who invited President Premadasa with the assist of the Chief Minister Gamini Jayawickrema Perera to open a garment manufacturing unit within the Kurunegala District. There, the President was very impressed with the operations of the garment manufacturing unit and wished to understand how he had arrange this manufacturing unit. Kumar Dewapura defined how the USA garment quota given free to Sri Lanka helped him to fabricate clothes for the export market and this offered jobs to the agricultural ladies. Additionally, that at current that there isn’t a full utilisation of the garment quota and that solely a privileged few had been benefitting from the garment quotas.
President Premadasa who was inclined in direction of professional poor growth and devoted in direction of growth of the agricultural areas was attracted in direction of the function that may be performed by garment factories and acquired the thought for the launch of the 200 Garment manufacturing unit Programme.
The bold goal was 200 garment factories with every manufacturing unit having 500 staff with choice given to Janasaviya households from the poorest of the poor offering 100,000 jobs primarily to females and placing into the economic system Rs. 500 million to Rs.1.0 billion per thirty days. The venture to be undertaken by native and overseas personal traders.
The duty to hold out the 200 Garment manufacturing unit Programme was given completely to the GCEC/BOI. This resulted within the conversion of GCEC to BOI inside a interval of two weeks with approval of parliament.
The scheme was drawn as much as entice personal traders each native and overseas below the 200 Garment factories Programme and among the incentives and amenities offered had been as follows.
Tax holidays based mostly on the realm of operation, opening of a overseas forex account, import of equipment and uncooked supplies obligation free, speedy clearance of import and export amenities by the establishing of the separate BOI customs clearing centre, operation of one-stop store, to arrange the cupboard sub-committee on investments, infrastructure amenities reminiscent of land, electrical energy, phone, water, roadways,export quotas to USA relying on the realm chosen starting from 10,000 dozens for non-difficult, 25,000 dozens for troublesome and 50,000 for many troublesome areas.All traders had been to be a offered the import of a Benz automobile obligation free on the completion of every garment manufacturing unit venture.
Implementation of the 200 Garment factories Programme
On the graduation of the programme I invited the highest garment producers affiliation for a gathering to elucidate the 200 Garment manufacturing unit Programme they usually sarcastically instructed me that no more than 7 or 8 factories may very well be arrange. Nobody additionally got here ahead to begin a manufacturing unit.
Within the meantime President Premadasa had his personal methods to kick off the 200 Garment manufacturing unit Programme which led to its success. The president labored intently with Kumar Dewapura who gave him the thought and offered him the assist in establishing of the primary 2 to three garment factories which had been opened by the president with a lot fanfare and publicity in newspapers, radio and TV. This opened the eyes of these within the garment trade together with the Garment Producers Affiliation in addition to many others who realised the attractiveness of the venture and got here dashing to acquire approval. BOI was working day and night time, approving tasks and giving the mandatory assist to traders.
The industrial and growth banks supported the 200 Garment factories Programme and funded traders to begin tasks early to satisfy the strict deadlines to open factories.
We additionally had quite a few conferences with traders, authorities ministries, industrial banks chaired by the late president himself and others chaired by the finance secretary to help traders in establishing factories and likewise fixing issues encountered by traders.
We had frequent conferences at Sucharitha the place President Premadasa invited traders who got dates to open their factories and solved any issues on the spot. All the time at these conferences the Chairman or GM of CEB, Roadways and Water Board had been current and able to present options to traders with regard to any issues of the provision of electrical energy provide, roadways and water provide.
We had traders from USA, UK, Hong Kong, Singapore and Germany investing in factories within the rural areas hitherto not even considered by any industrialist, native or overseas.
Since President Premadasa didn’t tolerate any political interference, we hardly bumped into issues with any of the politicians within the electorates.
Opening of Garment Factories
Within the 200 Garment manufacturing unit Programme, the late president was current for all of the official openings of factories and gave opening dates to all traders they usually needed to work around the clock to open their factories on the scheduled dates. The opening of a manufacturing unit was marked by the development of a clock tower giving recognition to the cities to have a clock tower much like the celebrated clock towers in Fort and Pettah.
On the time of President Premadasa’s premature demise, 160 areas had been allotted to assemble garment factories and 117 factories had been opened by the late president nearly one per week. This additionally included the opening of the clock towers and a public assembly and a musical programme. There have been six factories prepared for opening and 37 factories below development. A feat unmatched within the industrial and export growth in Sri Lanka.
The opposition members ridiculed the 200 Garment manufacturing unit Programme as an trade making “Jangi” that means “underwears for women”. Some others mentioned it was a fly by night time trade and never sustainable. Nonetheless, president Premadasa had taken the proper resolution as that is the one venture continued by successive governments and as we speak the very best industrial export earner and offering jobs to many particularly for females.
Conclusion:
The 200 garment manufacturing unit programme was one of many only a few tasks that had been supported by all successive governments that took energy after President Premadasa and this enabled the Attire and Garment exports to develop from app. US $ 764 M in 1991 the launch 12 months to succeed in US $ 5.483 billion in 2022.The established greater Garment manufacturing unit corporations who had their beginnings with the 200 Garment factories Programme have expanded abroad and are actually multinational corporations bringing credit score to Sri Lanka,
Right now with the large overseas trade crises the federal government must embark on bold export-oriented programmes which wants the dedication, braveness and outcome orientation of President Premadasa.
Just like the USA Garment Export Quotas, we should always signal Free Commerce Agreements to advertise industrial and providers exports slightly than imports.
One other success issue of President Premadasa was that he by no means took “no” for a solution and wished all to have a “can do” angle with a “optimistic mindset”. He was a agency believer of ‘Stroll the Speak’ that means ‘practise what you preach’.
President Premadasa’s export oriented growth insurance policies and serving to the poorest of the poor are true qualities of a grassroot politician carried ahead by all successive governments with no match to his dedication and achievements.
(The author is Former Chairman and Director Normal Board of Funding of Sri Lanka and Larger Colombo Financial Fee and Former Chairman of The Folks’s Financial institution.)
