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Inflation is the rate at which the general level of prices for goods and services are rising
- With developing mindsets of the common people, it is very important to build a stable economy for sustainability of any government in future to remain in power.
- It is very important that the entrepreneurs, local industrialists and the people focus on long term goals
The dollar has reached its highest in the history of Sri Lanka against the rupee. It is alarming and assume to reach even higher within the next couple of months. Inflation is the rate at which the general level of prices for goods and services are rising and, consequently, the purchasing power of currency is falling.
As a result of this, the tax hikes are also common.
Usually the temporary political remedy and people’s desires are to have a rapid wage increase to match the gap of the additional cost of living which everyone is happy to accept.
This cycle has been the case since the independence and ever continuing but preventing Lanka’s economic growth.
What we have forgotten and what we have ignored is the fact to seize the situation and to give a long-standing solution to build our national economy.
As an island nation we must identify and capitalize on our strengths to design a successful economic model similar to successful nations but yet a unique one to match for ourselves. For this, we have to come out from the islander’s mentality and think out of the box.
Service oriented industries, tourism and offshore services could be given priority in parallel. We must mould the mindset of the young generation to have the correct attitudes to work hard to build the nation. This needs to have an education system which would prioritize social values, knowledge and commitment.
As an island nation we must identify and capitalize on our strengths to design a successful economic model similar to successful nations but yet a unique one to match for ourselves.
A country with minimum resources in terms of raw material and specialized skills for innovative production industry needs its practical approach in facilitating the local entrepreneurs. The local industries of manufacturing products needs to improve, promote and develop to cater to the local consumption first and then to reach the export markets. It is also important to utilize the opportunities of the trade agreements between countries facilitating advantages to exports.
Though we spend foreign exchange for importing raw materials, the value addition itself directly contributes a lot to the society and the country’s economy in terms of providing job opportunities as well as the supporting sub industries and services within the country.
This will instantly create an environment with job opportunities within the society.
This is the only way out for the nation to stand strong against any economic crisis and to earn foreign exchange through exports.
To implement and encourage the entrepreneurs to align with a focus, the policy makers have a tremendous role to play and a new trend of bureaucracy with a national mindset has to be inculcated in the society immediately.
The government is the key player in the implementation of this programme and the regulators must have a practical approach and support facilitating the local entrepreneurs to do business.
Corruption has to be curtailed to its minimum and government sector officials need to be shifted in between the departments periodically to prevent any corruption bases they may create, being in one place over a long period of time. This practice is maintained by many of the developed countries where they have independent surveillance mechanisms to monitor such departments where possible corruption could be identified.
With developing mindsets of the common people, it is very important to build a stable economy for sustainability of any government in future to remain in power.
Government also needs to support and encourage entrepreneurs to look for innovative industries to produce sophisticated high-end products like medicine which the government depended as a subsidized area of mandatory spending with high foreign exchange outflows.
To implement and encourage the entrepreneurs to align with a focus, the policy makers have a tremendous role to play and a new trend of bureaucracy with a national mindset has to be inculcated in the society immediately.
However with limited raw material and expertise resources for such industries, we still have advantages even for value addition, so we create job opportunities and supporting services which brings cash flow to the economy.
It is very important that the entrepreneurs, local industrialists and the people focus on long term goals in terms of production, agriculture, service oriented industries while the government has to support and facilitate with special schemes encouraging people to invest on revenue generated industries.
It will somewhat help to stabilize the imbalanced local economy and obviously settle the international ratings so that the foreign investors will invest in the country without any hesitation.
Recently, such a scheme was initiated by the Ministry of Health, Nutrition and Indigenous Medicine through its line corporation, SPMC introducing a joint venture scheme encouraging investors to invest on pharmaceutical manufacturing in Sri Lanka.
It is a brilliant initiative by Minister Dr. Rajitha Senaratne which is the first ever Public Private Partnership in the history of Sri Lanka, with no burden to the government.
It is based on a buy-back guarantee and 21 companies are being given cabinet approvals to invest on pharma manufacturing plants. The produce of these factories are to be supplied to the Medical Supplies Division through the SPMC mandate.
The said 21 companies have gone through a vigorous screening process by a TEC to identify the production capabilities and their financial backgrounds.
Some have already started production while the rest of the companies have already started preliminary work.
The National Chamber of Pharmaceutical Manufacturers of Sri Lanka (NCPM) with this initiative has already addressed a few concerns related to the industry in common and have got instant solutions for the duty/tax waivers for the raw-materials which the whole industry is benefited and long waited for by the existing manufacturers.
NCPM addressing many issues related to the pharma manufacturing industry, will start a dialogue with the pharma importers and the other non-member manufacturers who are much thankful to NCPM for instantly achieving many benefits for them and for the industry.
NCPM is in the process of designing tailor-made packages for its members and discussing with the executive committee to facilitate another category of membership for other manufacturers who request to be benefitted and be part of the transparent result-oriented approach of the NCPM.
In par with the national interest, NCPM will promote and support the local pharma industrialists at least to reach the desired goal to be self-sufficient in local pharma needs by 2025.
This initiative is surely a success story and a pillar of strength to raise the national economy.
Supporting further, the ministry of finance has initiated a special funding scheme under the guidance of the Finance Minister Mangala Samaraweera, to promote local industries and the NCPM will guide and facilitate its membership to be benefited by the scheme offering low interest funding for their projects.
Being affiliated to IDMA (Indian Drug Manufacturers Association), the European Pharma Chamber and Czech Chamber of Pharma Manufacturers, NCPM will definitely take the Sri Lankan pharma industry to the next international level of markets through its reach of affiliations.
Focusing on key values and the Nationalistic vision, it’s our mission to minimize the foreign exchange outflow and to bring in foreign exchange by pharmaceutical exports which will be a winning approach of a rising nation.
The writer is the President of National Chamber of Pharmaceutical Manufacturers of Sri Lanka ( NCPM)
