EDB requests all exporters to resume operations following New Year holidays

• Factories outside red zones permitted to operate from next week

Sri Lanka’s Export Development Board (EDB) appeals to all exporters to resume operations following the Sinhala and Tamil New Year holidays next week in order to ensure the sustainability of the economy as Coronavirus (COVID-19) pandemic is deteriorating foreign inflows to the country. 

“It is imperative the government places emphasis on generating foreign exchange earnings, without which our economy cannot be sustained. It is of utmost importance, therefore, that all exporters commence operations after the New Year holidays,” the EDB said in a statement. 

The EDB announced that factories outside of the red zones will be permitted to operate following the Sinhala and Tamil New Year next week, given these factories are in compliance with the health regulations.

EDB Chairperson, Prabhash Subasinghe told Mirror Business that exporters could resume their operations with a minimum staff. Further, he noted that individual police stations would have the final say in allowing the exporters resume operations at their plants as some areas have been identified as red zones. 

“We wish to stress that it is mandatory for all exporters to comply with the health regulations issued by the Health Ministry in this regard and all factories will be inspected by the PHI of the respective area before they commence business,” the EDB added.

However, operations of apparel and textile plants are unlikely to recommence anytime soon as the export orders are either dried up or had got cancelled. The apparel and textile exports accounts for over 40 percent of the country’s merchandise export basket. 

The EDB has already cut the original target for export of goods and services by 40 percent from the original target of US$ 18.5 billion to US$ 10.75 billion.

Despite the current adverse environment, Subasinghe noted that food and agricultural exports and certain segments of rubber exports such as rubber gloves remain stable. 

“The EDB is assured that, given sufficient time, the world will recover and as for our nation, we are survivors. We will come out of this crisis with the help of our exporters who must now collaboratively start their businesses and help our country in time of need,” the EDB asserted. 

Further, it urged that all stakeholders should come together and go forth into the world in search of new markets, new customers whilst strengthening existing relationships and continuing to provide quality exports.

The EDB reiterated that it is fully committed to support all exporters and a hotline has been setup to assist the exporters. 

“We are confident that we will weather this storm and as we have done in the past, Sri Lanka will emerge stronger than ever and continue focusing on our main goal - recommencing exports, restoring them to their former level and increasing them,” the EDB stressed.