Editorial Committee

K.A.L Amaratunga Asst. Secretary

Pushpanie Wellappuli Asst. Director

Rohan Jayatillake Asst. Director

Udesh Seneviratne

Asst. Director

Indika Ranatunga

Asst. Director

Inoka de Alwis

Asst. Director

Janaka Gurusinghe

Asst. Director

Samangika Abeysinghe

Asst. Director Lakshmi N. de Silva

Press Officer

Volume I Issue IV 01.07.2011

lr®udka;lrejka uqyqKmdk .egÆ laI◊lj úi`°ug úfYaI tallhla

Let us reorganize and revitalize our moral lives

for the 2600th Sambuddhatva Jayanthiya

2600 ghs;akhc ja;Oaoqnïi skej quife.<mf aks;jfs<sm

dja,si o óaIal, dO,sk s;a;Dj%m Sk˙

l õfdlx, %SY r® ge. kof Kqyqu akjerlkhkmw dy akjerl;akdu Æ úi£u i|yd lr® jxi khkmw "hYxdH;duw =;qhgl csKdj dy ;akdu r® h,vaKu kO

l jn kjqgsysm udyj alhllat IaYfú jalt .`ui r® =;qhgl csKdj dy ;akduwud;H ˙Idâ n†hq° jxi khkmw dohs.qim 'shijm d;yu ak r® ahf,vaKu kO ° rnr® r® r® sm akjerlkhkmw yi akjerl;akdu ˙ .`ui ali

ljdPÉldi IaYfú s;ejem ° 'ha<fl aky|i jn at dhrjH;duw

syuf ° jeä ≥ "dhrjH;duw akñjalo aiyow a;gr

dw õfdlx, %SY§ r® l a.fmw ahflß: r ñsy alhkd:ai SIaYfúqi gakjerl;akdu `r huskú Yaofú amfw 'djkjf † 'sh;u hja;lhdo kof dn, akqjT akfaks;jm

HYjw gudh k.frl =;qhgl khkmw yi kodmaIsk jrd;f aks,jdOdn gakqjTm˙irh ilid ° a.fmw gú kj ïf 'djkási £en smw akhfYj alhcr gulr® ge. ïh ïh akjerlkhkmw dy akjerl;akdu Æ mw jn kof Kqyqu g,j

ge. ut 'djkako Æ jydu úi|d † ahfYxdH;duw a.fu dy|i ïf 'sh=;qh hjxi khkmw akhfja;ls,Qu r® guùqgsysm alhllat IaYfú jalt dy h,vaKu kO

'shsley <l lua;dhs%l hllat ut gú kj hidu kn, 'djkási akñrl =;qhgll a;. rl lal,b hkhkmw akss.`u hllat uuf r® dn, hja;Lqu%m g,j;akdu

m HOu dy M`qi "r;w kof ˙udK lr® ge. a.fakjerl;akdu Æ IaYfú o j|ns<sm <dow a;=lkfw dy|i =;qhgl ahfllat IaYfú uuf 'djkrl qudhf alhkdOjw "ï.xi a.fakjerlkhkmw dy a.fakshlodmaIsk "h,vaKu csKdj "YxdH;duw

fr® dO,sk ïfgÜu <yb ahfdjat dy k;hdw skej j=. ¯ka 'djkak. rl Oaknïi túg lr® ge. u; gakjerlkhkmw dy gakjerl;akdu Æ ut jlsKIal

a;fdyfduf ° <yb kodmaIsk a.fmw aks<=; ïf 'djkjf sley ;. d|iú udjkj sley a;guù d.`< akjfqiym drl lal,b khkmw a;guùxek o sheh ¶

'hSijem

syuf ° nr aksiú dhrjH;duw r® r® Æ úuid ne¨ w;r" wêl ú≥ dhmi Hjøquw "uù lêw ïohú ljaif "uohú s,

ïfSke. ≥ hSYaof disk vaKdN kYaofdw kKfñem ggruf aks,jYaofú "d;rlaI ïfSke. rl a;ma;w <dmf|<fjf ≥ ge. skej d;rlaI Æ `y ali/ ≥ , dkak. dk †'

fuu .egÆj,g úi`≥ qi dy|i uSke. dn, ï ≥ sl aili al<jfs<smvej qi ¯ug jxi khkmw "aksiú dhrjH;duw r® aiofmW gh,vaKu kO ≥ h.w "r;w ak

nr <l =;lt r® ≥ sl äej a;gr ¯ j|ns<sm jd;HYjw ïf 'ha<fl qudhf hkdOjw a.fdhrjH;duw

“EXPO BAZAAR-2011”

A novel step to stimulate a new export culture....

“Learn this of the waters; loud splatters the streamlet, the ocean’s depths are silent”. � � � � � � � � � � � � � � � � � � � � � � � � � � � - Nalaka Sutta, The Tripitaka

There were 130 stalls of more than 100 leading export companies representing agriculture, fisheries, indus-trial and service export sectors.

The Expo Bazaar – 2011 gathered momentum among the diplomatic community, foreign buyers and the general public who visited the three day exposition to experience an innovative intervention in becoming partners of the export development effort of the coun-try.

Establishing new niche markets for their products in the local market was one of the extra benefits reaped by the participants. Most of the participants were happy that the doors were opened to them for an untapped market segment through which, they will be able to diversify into the local market for their prod-ucts.

The “Expo Bazaar” would be the “ stepping stone “ for many potential participants of the ‘Sri Lanka Expo – 2012’, the mega international exhibition to showcase our export capabilities, which is to be held in March, 2012 under the patronage of the Hon. Min-ister of Industry & Commerce.

Expo Bazaar 2011, a novel intervention for recog-nizing the efforts of the exporter community in developing the economy of the country, which was held from 8th to 10th April, at the Green Path, Colombo, was concluded successfully.

Expo Bazaar – 2011 was organized by the Sri Lanka Export Development Board with the objec-tive of stimulating a new export culture in the coun-try, paving the way for stakeholders and the general public to look, feel and experience the latest prod-ucts and services of the Sri Lankan export sector. In realizing its objective, leading exporters of the country demonstrated their capabilities and talents in producing high quality products and services to international standards.

The event was ceremonially declared open by Hon. Basil Rajapaksa, Minister of Economic Develop-ment with Hon. Rishard Bathiudeen, Minister of Industry & Commerce and Hon. Jayaratne Herath, Deputy Minister of Industry & Commerce and graced by many of the Excellencies the Ambassa-dors of foreign missions resident in the country, to gether with other distinguished invitees represent-ing the stakeholder organizations. Hon. Namal Rajapaksa, Member of Parliament & Chairman of ‘Tharunyata Hetak’, was also a distinguished visitor to the event who appreciated the participa-tion of the young entrepreneurs at the event.

Ms.Rekha HewaliyanageDirector/SMED, Sri Lanka Export Development Board

YS% ,xldfjka wmkhkh lrk w.h tl;= l< f;a f,dj we;s iqms˙is≥ f;a nj ;yjqre ls¯u i|yd lr®udka; yd jdKsc

lghq;= wud;HdxYh" YS% ,xld f;a mr®fhaIK wdh;kh iu. úfYaI jHdmD;shla †h;afldg we;' fuys° úfYaIfhka

w.h tl;= l< f;a nyq,j Ndú;d jk cmdkh yd hqfrdamd yjqf,a rgj,a úiska mkjd we;s m%dfhda.sl ;;a;aj hgf;a

ksIamdolhskag <`.d lr .; fkdyels uÜgfï f;aj, ;sìh yels wju lDIs ridhk uÜgï ksje/† ls¯ug lghq;=

flfrhs' fï hgf;a hym;a j.d l%u hgf;a ksIamd†; YS% ,xld f;a úYaf,aIKh fldg mr®fhaIK iy ;;a;aj iy;sl

u.ska ksIamdolhskag <`.d lr.; yels ksje/† uÜgï m%;HlaI fldg wod< rgj,g b†˙m;a ls¯fuka oekg f;a

wmkhkh i|yd we;s n≥ fkdjk ndOl bj;a ls¯ug lghq;= fhfohs' fï i|yd lr®udka; yd jdKsc lghq;=

wud;HdxYh u.ska remsh,a ñ,shk 7'5 l uqo,la f;a mr®fhaIK wdh;kh fj; f,dal wdydr yd lDIslr®u ixúOdkfha

u. fmkaùu hgf;a mr®fhaIK ls¯u i|yd ,nd ° we;'

rcfha kj m%;sm;a;shg wkql+,j w.h tl;= l< NdKav wmkhkh †˙.ekaùu Wfoid úúO wxYhkays úúO jevigyka

l%shdjg kef.hs' fï wkqj w;S;fha mgka meje;s idïm%odhsl f;a wmkhkh fjkqjg w.h tl;= l< f;a úfYaIs;

fjf<|fmd< lrd wmkhkh ls¯fuka jeä wdodhula ,nd.ekSug fuu wud;HdxYfha ixjr®Ok wxY 1 u.ska lghq;=

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mr®fhaIKd.drh jeä †hqKq ls¯u i|yd Wmld˙ùu yd w.h tl;= l< f;a ksIamdokh jeä ls¯u fuu wud;HdxYh

u.ska is≥ flfrhs'

fï hgf;a w.h tl;= lrk ,o f;a wmkhklrejka uqyqK md isák m%Odk ndOlhka bj;a ls¯u i|yd wud;HdxYfha

WmfoaYl lñgq fhdackdjlg wkqj wmkhk f;aj, wvx.= m<sfndaOkdYl m%udKh ksr®Kh ls¯u i|yd

m<sfndaOkdYl wjfYaI ridhksl ix>gl úYaf,aIKh ls¯fï WmlrKhla ^LCMS - Liquid Chromatography Mass Spectrophotometer& YS% ,xld f;a uKav,fha yd fuu wud;HdxYfha odhl;ajfhka ñ,° .kakd ,†' fuu

hka;%h YS% ,xld f;a uKav,hg wh;a mr®fhaIKd.drfha ia:dms; lr we;s w;r" uQ,sl mr®fhaIK j,ska wk;=rej f;a

wmkhklrejka i|yd wjYH fiajdjka iemhSSug fkdmudj fhduqlrk nj YS% ,xld f;a uKav,fha wOHlaI fckrd,a

úiska mjik ,†'

fuf;la YS% ,xldfõ fkd;snQ fuu myiqlu Ndú;fhka 300 lg wêl f;a wmkhklrejkag wvq uqo,g fuu iy;sl

furáka ,nd .ekSug yelshdj ,efnk w;r hqfrdamd rgj,a yd cmdkh jeks f;a wf<úh wêl rgj,g myiqfjka

we;=`M ùug ;snQ ndOd fuu.ska ,sys,a jkq we;ehs úYajdi flfr®'

;j o cd;Hka;r fj<|fmd<g YS% ,xld f;a b†˙m;a ls¯fï ° w;HjYHfhkau fuu iy;sl b†˙m;a ls¯u l< hq;= jkq

we;ehs f;a wmkhklrejkaf.a u;hhs' fuu.ska YS% ,xld f;a" f,dj we;s ms˙is≥u f;a njg iy;sl jk w;r t;=<ska

ksr®udKh jk lSr®;s kduh ;=<ska fuu lr®udka;h u.ska úYd, úfoaY úksuhla Wmhd .ekSfï yelshdj Wodjkq we;'

YS% ,xldfõ mj;sk wkd.; wdfhdack wjia:d ms<sn| j fidhd ne,Sug YS% ,xldjg meñK isák ì%;dkH wdfhdaclhska

ms˙ila miq.shod lr®udka; yd jdKsc lghq;= wud;HdxYfha ° .re lr®udka; yd jdKsc lghq;= wud;H ˙Idâ n†hq°ka

uy;d uqK.eiqKs' iduldó YS% ,xldfõ wkd.; wdfhdack wjia:d ms<sn| j fidhd ne,Su fuu ms˙fia YS% ,xld ixpdrfha

wruqK úh'

lr®udka; yd jdKsc lghq;= wud;Hjrhd úiska YS% ,xldfõ wÆ;ska ksr®udKh fjñka mj;sk wdfhdack wjia:d /ila

ms<sn| j fuu ¥; ms˙i oekqj;a l< w;r" fuu wdfhdack wjia:d w;r f.dvke`.s,s b†ls¯ï" m%jdyk yd há;,

myiqlï ixjr®Okh" jdKsc bvlvï ixjr®Okh yd iq<x n,Yla;s W;amdokh hk lafIa;%hka iqúfYaIS fõ' ì%;dkHh

m%uqL fmf<a jHdmd˙l m%cdj ksfhdackh lrñka YS% ,xldjg meñKs fuu ms˙i YS% ,xldfõ mj;sk fuu wdfhdack

wjia:d ms<sn|j ;u jHdmd˙l m%cdj oekqj;a lrk njg;a Tjqkaf.a ksr;=re wjOdkh ,xldfõ wdfhdack wjia:d

flfrys fhduq ù we;s njg;a ˙Idâ n†hq°ka wud;Hjrhdg mejiSh'

f,dj we;s iqm˙is≥u f;a YS% ,xldfjka

frdydka ch;s,lje'n'ksfhdacH wOHlaI ixjr®Ok wxY - 1

,laIaó o is,ajdm%jD;a;s ks,Od¯kS

ì%;dkH wdfhdaclhkag wud;H ˙Idâ n†hq°kaf.ka we˙hqï

“The island of Ceylon (Sri Lanka) is a small universe; it takes as many variations of culture, scenery and climate as some countries a dozen times its size.” Sir Arthur C. Clarke

ìx.s h u,a jika;hlDIs wOHdmk yd wf,ú m%or®Ykh - 2011 uehs 26 - 28

Oïñl chjr®OkksfhdacH wOHlaI $ iq`M yd uOH m˙udK lr®udka; wxYh" wmkhk ixjr®Ok uKav,h

“A man can be destroyed, but not defeated” .

The Editorial Committee of expresses its gratitude to

Ms. Subhashini ShiromaniIndustrial Development Assistant,

Ms. Badra Dassanayake & Ms.Chaturika Athukorala, Management Assistants and

Mr. Neil Ananda, Office Assistant of the

Ministry of Industry & Commerce for their assistance.

uxi,

Life is a gift to be used everydayNot to be smothered and hidden awayIt isn’t a thing to be stored in the chestWhere you gather your keepsakes and treasure your best

It isn’t a joy to be sipped now and thenAnd promptly put back in a dark place againLife is a gift that the humblest may boast ofAnd one that the humblest may well make the most of

Get out and live it each hour of the day Wear it and use it as much as you mayDon’t keep it in niches and corners and groovesYou’ll find that in service its beauty improves

Ernest Hemingway

Sir Winston Churchill

What goes around comes around

His name was Fleming, and h e was a poor Scottish farmer. O ne day, w hile trying t o make a l iving for his family, he heard a cry for help coming from a nearby bog. He dropped his tools and ran to the bog. There, mired to his w aist i n black m uck, w as a terrified boy, screaming and struggling to free himself. Farmer Fleming saved the lad from w hat could have been a slow and terrifying death. T he next day, a fancy carriage pulled u p to t he Scotsman's sparse surroundings. A n elegantly dressed nobleman s tepped out and i ntroduced himself a s the father of the boy Farmer Fleming had saved. 'I want to repay you,' said the nobleman. 'You saved my son's life.' 'No, I can't accept payment for w hat I d id,' t he Scottish farmer replied waving off the offer � .At that moment, the farmer's own son came to the door of

the family hovel. ' Is t hat your son?' the nobleman asked.'Yes,' the farmer replied proudly. T ll make you a deal. Let me provide him with the level of education my own son will enjoy. If the lad is anything like his father, he'll no doubt grow to be a man we both will be proud of.' And that he did. Farmer Fleming's son attended the very best schools and i n time, graduated from St. M ary's Hospital M edical S chool in London, and w ent o n to become known throughout t he w orld as the noted Sir Alexander F leming, the discoverer o f Penicillin.Years afterward, the same nobleman's son who was saved from the bog was stricken with pneumonia.What saved his life this t ime? P enicillin. T he name of t he nobleman? L ord Randolph C hurchill. H is son's name? Sir W inston Churchill. �

Someone once said: What goes around comes around.

Sir Alexander Fleming

L I F E

Come to the Edge

Come to the edge.We might fall.

Come to the edge.It's too high!

COME TO THE EDGE!And they came,And he pushed,And they flew.

Edgar A. Gues t

Christopher Logue

Source: Interrnet

“A friend to all is a friend to none.”

legm;a mjqr

ñ°u

jir .Kkla mqrd

udfi yeu ojilu

f.jk yeu fudfyd;lu

;Ügqfjka ;Ügqjg

yomq uy uka†rh

fkal nvq mqrj,d

ldur;a uy f.dvla

;snqfKd;ska krl ke;

;j;a tl ;Ügqjl a

ta;a ;j ys;ñ uu ''''

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±kgu;a wmyiqh

ye¥f.hs kv;a;=j

fndfyda úg uy nfrls

uy;a fjfyila f.fkk

i;a;lska ´k ug

fuh lvd oukakg

uu yomq uka†rh

ldufrka ldurh

Bg yqÛ l,la hh s

wudrehs bjikak

we;a;gu jqjukd

le◊u`v, ì¢kakg

fidhñ uu yeu ;eku

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iuka.sld wfíisxy

ie,eiqï wxYh

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m%shhkaf.ka

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b;ska ug wjir o

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Oïumoh o

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ie,eiqï wxYh

“A friend to all is a friend to none.”

legm;a mjqr

ñ°u

jir .Kkla mqrd

udfi yeu ojilu

f.jk yeu fudfyd;lu

;Ügqfjka ;Ügqjg

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fndfyda úg uy nfrls

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i;a;lska ´k ug

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uu yomq uka†rh

ldufrka ldurh

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wudrehs bjikak

we;a;gu jqjukd

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fidhñ uu yeu ;eku

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<d oÆ fndam;a f,<fok iq<fÛa

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tia'„' ks,ka;s

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wxYh

ms<sfj;ska fm<.efiuq'''@

Wohg o ijig o

ue†hu o wÆhu o

ksrka;rfhka wefia

ms˙;a nK oyï mo

mefhka meh ±yeñ is;=ú, s

Oïumoh o

cd;l fmd; o

wre;anr jokaje,a

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Nød oikdhl

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Nalaka de SilvaIndustrial Development Assistant, Management Information Division

SME DEVELOPMENT IN INDIA THROUGH “SELF HELP GROUP”

Keep your eyes on the stars, and your feet on the ground.

Theodore Roosevelt

Women are traditionally known to be astute managers and creatively resourceful. Even though some of them are illiterate, well managing woman have kept families thriving in the most distressing of circumstances. Therefore it is not surprising that micro businesses of women groups have created far – reaching ripples.

To permeate entrepreneurial culture into rural areas, especially among woman folk, SHG formation has proved to be effective. Another benefit of SHGs is the promotion of leadership, since some of the members emerge as leaders in a group, because of their natural aptitude. At the same time, they also retain their entrepreneurial qualities, and participate in income generating activities. The Government of India look at this as a starting point for developing and reinforcing entrepreneurial behaviour among the women. Some of them would reveal themselves as achieve-ment oriented risk takers, daring any challenge. All these traits are hallmarks of strong entrepreneurial behaviour. Women entrepreneurs thus emerged from SHGs may then scaled up to higher levels. These success models would influence other woman to become entrepreneurs also. When this process is sufficiently replicated, the Indian Government’s dream of an entrepreneurial society will come true.

Not only in India but even in the developed countries like the United Kingdom and Australia, micro business development through the promotion of woman entrepreneurs has proved effective in giving a new face to the economy.

Building up an economy is like building a mansion more or less. To build a mansion to our desired shape, we have to lay the bricks and stones accordingly. Not all the bricks and stone are of the same size. As such, we may have to resize or reshape them before use. A creative and resourceful architect could raise a structure with the material. Building up the economy of a nation is also a similar task. Therefore, the introduction of modern strategic to develop Small and Medium Enterprises (SMEs), & Micro Small and Medium Enterprises (MSMEs) have become an urgent necessity for Sri Lanka.

“Self Help Group” (SHGs) is a new segment to uplift lives of downtrodden society in the Government of India, who are seen in every state of the Indian Society.

A large part of the people in India are generally low in literacy, swamped by poverty, having no or inadequate meals and are comprised of scheduled castes and tribes, other backward classes, women and the physically challenged. To provide them with access to income fetching channels, alleviate their poverty and economically empower them, the promotion of micro business through “Self Help Groups” has proved to be a highly effective strategy. The result has been most salutary with respect to groups comprised mainly of women.

Under the SHGs the underprivileged mainly receive the follow-ing facilities to develop entrepreneurship

• Issuing loans • Provision of Land & materials • Term of the loan decided by the SHGs• Grace period, according the loan amount

As noble swans fly in the path of the sun, so the wise transcend this world. � � � � � � � � � � � � � � � � � � � � � � � � � � � - Dhammapada

� The world around us is constantly changing, requiring us to adapt to new situations, which gives rise to new needs and wants, the fulfillment of which in turn, requires innovative thinking on our part. This is a continuous cycle which stresses that in a changing environment innovation is essential for sustenance. �

� In his work “The Origin of Species”, Charles Darwin has introduced the concept of “the survival of the fittest”, in that, the nature selects the fittest organism, for survival which can best adapt to the changes in the environment, while those who cannot, are left to perish. �

� Similarly, the changes taking place in the global scenario requires countries to make necessary changes with regard to many aspects, such as economic, social, environmental etc. Accordingly, a country needs to revise its policies with regard to agricultural, industrial and services sectors from time to time, in order to keep up with the world trends � .

� The industrial sector of Sri Lanka �

� It has been observed that Sri Lanka’s industrial exports are mainly concentrated on Textiles and Garments which makes up of 56.75% of the country’s total industrial exports. Therefore, several measures have been taken to diversify the exports basket of Sri Lanka. The composi-tion of the industrial sector in 2010 indicates that the Food and Beverages sector (48%), Textile Weaving Apparel and Leather sector (22%) and the Chemical Petroleum Rubber and Plastic Products sector (16%)

� together has contributed to 86% of the industrial production in Sri Lanka, whereas the total of the other six sectors have contributed to less than 15%. �

� Taking into consideration the above, it has been ques-tioned by some, whether Sri Lanka has a comparative advantage in many industrial sub sectors and whether it would be much more advantageous to import than to manufacture locally. �

� The significance of the industrial sector to a country

� The industrial sector of a country makes a significant contribution to the GDP. (During the year 2010, the industrial sector of Sri Lanka has contributed to Rs. 760,219 Mn. which is equivalent to 28.7% of the GDP.)

� Industries contribute to develop backward and forward integrated industries, by purchasing their inputs from components manufacturers (thread) and supplying inter-mediate inputs (textile) to finished goods manufacturers (garments). It also supports tools/ equipments/ machinery manufacturing industries by purchasing their products. The industrial sector helps the other two sectors by purchasing the output of the agriculture sector for the processed food industry and supplies goods to both the sectors, such as agricultural machinery (water pumps, sprays) and several items to the tourism sector. Industries generate employment and contribute to the development of skills of human resources. As such, the educated and skilled persons would find employment opportunities through domestic industries. (The industry sector of Sri Lanka has contributed to 24.2% of the country’s total labour force in 2010)The sector promotes innovation, research and development through its efforts to improve the output and the efficiency of the production process, which contribute to develop the relevant technologies. Domestic industries promote import substitution and export promotion. (The industry sector of Sri Lanka has made a contribution of 74.3% to the country’s export earnings in 2010). A country with little or no industry would have to depend entirely on trade for its needs, which would open its economy to all the disadvantageous positions that its trading partners face with. (Economic recessions/downturns etc.) Industries add value to natural

Innovate or Perish?Inoka de Alwis

Assistant Director (Macro Policy)

A nation that does not innovatePerishes where the begging failsThe nation’s voice dies unheededWhere ‘Pundits’ are Whatever foreign is hailed� � � - � Translation

•� The promotion of Research and Development activities, in order to encourage innovation and the manufacture of high value added products.

•� Increased accessibility to credit facilities with reasonable rates to facilitate local industries, especially Small and Medium Industries (SMIs).

•� Introduction of a need-based education system in order to eliminate the mismatch between the nature of knowledge & skills instilled in students and those required by the country, especially the industrial sector. Most of the programmes conducted by Univer-sities and other educational institutions are at present supply-driven, rather than demand-driven. �

•� Since the lack of energy sources at a reasonable cost is an issue faced by many industries, especially the industries which utilize a high amount of energy such as the ceramic industry, a reliable, efficient and an affordable power supply should be provided to the local industries. �

•� Implementation of strategies such as capturing niche markets, increase value addition, product differ-entiation, improve quality etc. �

In view of the above, it is evident that manufacturing and innovation are inter-dependant areas, which cannot sustain without each other. � �

� "There will be no sustainability without competitiveness, and there will be no long-lasting competitiveness without sustainability. And there will be none of them without a quantum leap in innovation" � - Antonio Tajani, Vice-President of the European Commission. (A part of the statement made when launching the 'Integrated Industrial Policy for the Globalization Era', one of the flagship initiatives of the Europe 2020 strategy.) �

“While individual effort is crucial, another golden triangle, of industry, government and R & D insti-tutions, really forms the base of a country’s devel-opment. They set into motion technology-based business activity, employment, demand creation through policies which will help businesses and as a consequence, wealth creation. This golden triangle is crucial in our competing in global markets, as well as in bringing wealth and prosper-ity to our people”. � � � A.P.J.A. Kalam and Y.S. Rajan (2011) �

� exchange than the export of basic raw materials. The indus-try sector encourages entrepreneurship, which is essential for the development of a country. It contributes to regional devel-opment. The establishment of industrial estates in rural areas helps improve infra structure such as roads, electricity, water facilities etc., while the industries located within the estates could source their human & other resources from the area, which contributes to increase the income of the rural popula-tion. � .

� Back to basics – domestic industrialization �

� It has been a trend for some time past, for several countries in the world to shift away from manufacturing to become trading economies or to shift certain manufacturing processes off shore. �

� In the article “Restoring American Competitiveness”, which appeared in the Harvard Business School Review of July-August, 2009, Gary P. Pisano and WillyC. Shih have introduced an revolutionary concept, which is an eye-opener for countries which discourage domestic industrialization. �

� It has been observed by Gary P. Pisano & WillyC. Shih that the shifting / outsourcing of various stages of production processes of manufacturing industries of USA to other coun-tries have eroded the manufacturing capabilities of USA in the long run. According to Pisano & Shih, the trade balance in high tech products of USA have continued to decline and by 2002, it has turned negative. �

� This concept deviates from the traditional view of Compara-tive Advantage and stresses that countries should encourage domestic industries, even if they did not have the capability to produce goods that have a comparative advantage. Pisano & Shih have commented that “to be competitive over the long term, companies innovating in the U.S. must retain and build the capabilities in manufacturing and R&D in the U.S. that are critical to innovation and value creation, which, in turn, provides jobs. To do so, however, means that we have to be constantly upgrading the capabilities of our workforce.” �

� As emphasized at the beginning of this article, innovation is the strategy for a sustainable economic development in a changing environment. Pisano & Shih have pointed out that manufacturing competence is as crucial to innovation as Research and Development, since manufacturing is very much a part of the innovation process. ��� The way forward �� The sustainability of the domestic industrial sector could be ensured through the following; �

wÆ;a wÆ;a ≤ fkd;kk cd;sh f,dj fkdk.S

isÛd lEu ne˙jqk ;eke ,.S .hd ur .S

.eñ jy˙ka yo fmdmshk wre;a rih fkd ke.S

uy mç oo ok Wm†k l,e mr ≤ wke.S

l=udr;=x. uqks∞i Y+ ka

References are on page 10

As noble swans fly in the path of the sun, so the wise transcend this world. � � � � � � � � � � � � � � � � � � � � � � � � � � � - Dhammapada

� The world around us is constantly changing, requiring us to adapt to new situations, which gives rise to new needs and wants, the fulfillment of which in turn, requires innovative thinking on our part. This is a continuous cycle which stresses that in a changing environment innovation is essential for sustenance. �

� In his work “The Origin of Species”, Charles Darwin has introduced the concept of “the survival of the fittest”, in that, the nature selects the fittest organism, for survival which can best adapt to the changes in the environment, while those who cannot, are left to perish. �

� Similarly, the changes taking place in the global scenario requires countries to make necessary changes with regard to many aspects, such as economic, social, environmental etc. Accordingly, a country needs to revise its policies with regard to agricultural, industrial and services sectors from time to time, in order to keep up with the world trends � .

� The industrial sector of Sri Lanka �

� It has been observed that Sri Lanka’s industrial exports are mainly concentrated on Textiles and Garments which makes up of 56.75% of the country’s total industrial exports. Therefore, several measures have been taken to diversify the exports basket of Sri Lanka. The composi-tion of the industrial sector in 2010 indicates that the Food and Beverages sector (48%), Textile Weaving Apparel and Leather sector (22%) and the Chemical Petroleum Rubber and Plastic Products sector (16%)

� together has contributed to 86% of the industrial production in Sri Lanka, whereas the total of the other six sectors have contributed to less than 15%. �

� Taking into consideration the above, it has been ques-tioned by some, whether Sri Lanka has a comparative advantage in many industrial sub sectors and whether it would be much more advantageous to import than to manufacture locally. �

� The significance of the industrial sector to a country

� The industrial sector of a country makes a significant contribution to the GDP. (During the year 2010, the industrial sector of Sri Lanka has contributed to Rs. 760,219 Mn. which is equivalent to 28.7% of the GDP.)

� Industries contribute to develop backward and forward integrated industries, by purchasing their inputs from components manufacturers (thread) and supplying inter-mediate inputs (textile) to finished goods manufacturers (garments). It also supports tools/ equipments/ machinery manufacturing industries by purchasing their products. The industrial sector helps the other two sectors by purchasing the output of the agriculture sector for the processed food industry and supplies goods to both the sectors, such as agricultural machinery (water pumps, sprays) and several items to the tourism sector. Industries generate employment and contribute to the development of skills of human resources. As such, the educated and skilled persons would find employment opportunities through domestic industries. (The industry sector of Sri Lanka has contributed to 24.2% of the country’s total labour force in 2010)The sector promotes innovation, research and development through its efforts to improve the output and the efficiency of the production process, which contribute to develop the relevant technologies. Domestic industries promote import substitution and export promotion. (The industry sector of Sri Lanka has made a contribution of 74.3% to the country’s export earnings in 2010). A country with little or no industry would have to depend entirely on trade for its needs, which would open its economy to all the disadvantageous positions that its trading partners face with. (Economic recessions/downturns etc.) Industries add value to natural

Innovate or Perish?Inoka de Alwis

Assistant Director (Macro Policy)

A nation that does not innovatePerishes where the begging failsThe nation’s voice dies unheededWhere ‘Pundits’ are Whatever foreign is hailed� � � - � Translation

•� The promotion of Research and Development activities, in order to encourage innovation and the manufacture of high value added products.

•� Increased accessibility to credit facilities with reasonable rates to facilitate local industries, especially Small and Medium Industries (SMIs).

•� Introduction of a need-based education system in order to eliminate the mismatch between the nature of knowledge & skills instilled in students and those required by the country, especially the industrial sector. Most of the programmes conducted by Univer-sities and other educational institutions are at present supply-driven, rather than demand-driven. �

•� Since the lack of energy sources at a reasonable cost is an issue faced by many industries, especially the industries which utilize a high amount of energy such as the ceramic industry, a reliable, efficient and an affordable power supply should be provided to the local industries. �

•� Implementation of strategies such as capturing niche markets, increase value addition, product differ-entiation, improve quality etc. �

In view of the above, it is evident that manufacturing and innovation are inter-dependant areas, which cannot sustain without each other. � �

� "There will be no sustainability without competitiveness, and there will be no long-lasting competitiveness without sustainability. And there will be none of them without a quantum leap in innovation" � - Antonio Tajani, Vice-President of the European Commission. (A part of the statement made when launching the 'Integrated Industrial Policy for the Globalization Era', one of the flagship initiatives of the Europe 2020 strategy.) �

“While individual effort is crucial, another golden triangle, of industry, government and R & D insti-tutions, really forms the base of a country’s devel-opment. They set into motion technology-based business activity, employment, demand creation through policies which will help businesses and as a consequence, wealth creation. This golden triangle is crucial in our competing in global markets, as well as in bringing wealth and prosper-ity to our people”. � � � A.P.J.A. Kalam and Y.S. Rajan (2011) �

� exchange than the export of basic raw materials. The indus-try sector encourages entrepreneurship, which is essential for the development of a country. It contributes to regional devel-opment. The establishment of industrial estates in rural areas helps improve infra structure such as roads, electricity, water facilities etc., while the industries located within the estates could source their human & other resources from the area, which contributes to increase the income of the rural popula-tion. � .

� Back to basics – domestic industrialization �

� It has been a trend for some time past, for several countries in the world to shift away from manufacturing to become trading economies or to shift certain manufacturing processes off shore. �

� In the article “Restoring American Competitiveness”, which appeared in the Harvard Business School Review of July-August, 2009, Gary P. Pisano and WillyC. Shih have introduced an revolutionary concept, which is an eye-opener for countries which discourage domestic industrialization. �

� It has been observed by Gary P. Pisano & WillyC. Shih that the shifting / outsourcing of various stages of production processes of manufacturing industries of USA to other coun-tries have eroded the manufacturing capabilities of USA in the long run. According to Pisano & Shih, the trade balance in high tech products of USA have continued to decline and by 2002, it has turned negative. �

� This concept deviates from the traditional view of Compara-tive Advantage and stresses that countries should encourage domestic industries, even if they did not have the capability to produce goods that have a comparative advantage. Pisano & Shih have commented that “to be competitive over the long term, companies innovating in the U.S. must retain and build the capabilities in manufacturing and R&D in the U.S. that are critical to innovation and value creation, which, in turn, provides jobs. To do so, however, means that we have to be constantly upgrading the capabilities of our workforce.” �

� As emphasized at the beginning of this article, innovation is the strategy for a sustainable economic development in a changing environment. Pisano & Shih have pointed out that manufacturing competence is as crucial to innovation as Research and Development, since manufacturing is very much a part of the innovation process. ��� The way forward �� The sustainability of the domestic industrial sector could be ensured through the following; �

wÆ;a wÆ;a ≤ fkd;kk cd;sh f,dj fkdk.S

isÛd lEu ne˙jqk ;eke ,.S .hd ur .S

.eñ jy˙ka yo fmdmshk wre;a rih fkd ke.S

uy mç oo ok Wm†k l,e mr ≤ wke.S

l=udr;=x. uqks∞i Y+ ka

References are on page 10

kka†ld ;rx.kSwmkhk m%jr®Ok ks<Od¯kS

m%;sm;a;s yd ie,eiqï wxYh" wmkhk ixjr®Ok uKav,h

udr®;= ui° jdr®;d.; wmkhk wdodhula

“In matters of style, swim with the current; in matters of principle, stand like a rock.”� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Thomas Jefferson

udr®;= wfm%a,a uehs cQks cQ,s wf.daæ iemaæ Tlaæ fkdjeæ foieæ ckæ fmnæ udr®;=

Continued from page 9 �References �

1. �A.P.J. Abdul Kalam and Y.S. Rajan (2011) Building a New India �2. �Central Bank Annual Report of Sri Lanka, 2001 and 2010 �3. �http://hbr.org/hbr-main/resources/pdfs/comm/fmglobal/restoring-american-competitiveness.pdf viewed on 30.04.2011 �4. �http://blogs.hbr.org/hbr/restoring-american-competitiveness/2009/11/the-us-must-manufacture.html viewed on � 17.06.2011 �5. �http://ec.europa.eu/enterprise/magazine/articles/industrial-policy/article_10834_en.htm viewed on 17.06.2011 �6. �http://www.aaes.org/communications/documents/NAE.Pisano.Presentation%2020100419.pdf viewed on 30.04.2011 �7. �Kelegama, Saman. (2006), “Industrialization Debate and the Way Forward” Contemporary Economic Issues �

GLITTERING SUCCESS FOR SRI LANKA AT‘AQUARAMA – 2011’

INTERNATIONAL FISH COMPETITION

Mrs. O.M.C. KumudinieDeputy Director/Agriculture & Fisheries Division

Sri Lanka Export Development Board

“Character is like a tree and reputation like its shadow. The shadow is what we think of it. The real thing is the tree”.

Abraham Lincoln

Sri Lanka was able to win 11 Awards and secure the 2nd Place in the overall competition at the Interntional Ornamental Fish Competition held in Singapore from 24th – 29th May, 2011. This outstanding achievement highlights the personalized breeding ability of Sri Lankan ornamental fish breeders.

Priyantha Aquarium, a Sri Lankan Sward Tail breeder won the 1st Place under the new variety category at the competition. Our breeders were also able to secure the first three places under the Platy category. In addition, 04 awards under the Guppy category and 02 awards under the Molly category were also won by our breeders at this prestigious international competition.

Sri Lanka’s participation at this international fair was organized by the EDB with the participa-tion of eight breeder/exporter companies. The Strategic Plan of the EDB has identified orna-mental fish as an important sector with a vast export potential and with the ability to contribute towards the poverty alleviation efforts of the Government.

Never explain.Your friends do not need it and your enemies will not believe it.

dja,si o óaIal,

dO,sk s;a;Dj%m ˙kS

dja,si o óaIal,

dO,sk s;a;Dj%m ˙kS

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2102 "r;w s;ew ° yd 2013 ° gjn kj al ]9 ht

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jd:aijw guSke. dn, Nd,s;%m Oaondlat ggrof

sley <l hkhkmw gjadlfsialuf 'djkif,ei

M`j<t o, krl aili i,f vaKdN kjdkf lshdo%mïdi

yd m, "Hjø s,s.`ekvd.f o, kjomsk jus%;Dl "er=;

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djkási hehs mejiSh'

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sl hKIa,faYú ¯ qudhf hkdOjw o j|ns<sm akhkhHOw ïf

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(Jaime Nualart) |<fjf qkdlsialuf yi d;yu

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