{"id":66641,"date":"2017-06-04T16:01:52","date_gmt":"2017-06-04T23:01:52","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=66641"},"modified":"2019-09-12T16:03:42","modified_gmt":"2019-09-12T23:03:42","slug":"factories-trishaws-and-yahapalana-part-1","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2017\/06\/04\/factories-trishaws-and-yahapalana-part-1\/","title":{"rendered":"FACTORIES, TRISHAWS AND YAHAPALANA Part 1."},"content":{"rendered":"

KAMALIKA\u00a0 PIERIS<\/em><\/span><\/h2>\n\n\n

Revised 9.9.19<\/strong><\/p>\n\n\n\n

Yahapalana\u2018s main,\nif not sole, economic policy is to go for exports. Central Bank Governor\nCoomaraswamy pointed out that unless we increase exports, we will\nnot get out of our debt problem, and we will not achieve sustained growth. Developing\na national strategy for exports is a key component of the development agenda of\nthe Government, Yahapalana said. The export market is the only avenue available\nto develop the country\u2019s economy. <\/p>\n\n\n\n

Yahapalana said,\nfor the last decade or so, the governments of Sri Lanka neglected exports.\nExports to GDP fell from 34% of GDP to less than 14% during this period.\nYahapalana government plans to increase its export sector. We have set a target\nof boosting exports to US$ 20 billion by 2020, an increase in exports of nearly\n80% during 2016-2020.. We plan to create an export market\nfocused on Europe, China, Japan, USA and the crescent of markets around the\nIndian Ocean.  A well crafted export oriented service sector\nwill   help to solve youth unemployment\nas well. <\/p>\n\n\n\n

Yahapalana sees a\nrosy future for the export sector. \nYahapalana says Sri Lanka has completely ignored \u2018it major competitive\nadvantage,\u2019 which is exports. The country had already proved its ability to do\nso in respect of the garment sector. However,\nYahapalana is definite that export growth cannot be achieved through\ntraditional export markets. Sri Lanka must go in for new exports and new\nmarkets we must diversify.  We must look\nbeyond for new opportunities. Other countries have diligently developed new\ntypes of businesses and have successfully diversified its export base, said\nYahapalana. However, Yahapalana is not\nquite sure what kind of exports we should go in for. Rich countries make the\ncomplex goods while poor countries produce Sri Lanka is somewhere in the\nmiddle. <\/p>\n\n\n\n

Yahapalana wishes to make Sri Lanka \u2018a notable industrialized\ncountry\u2019   despite the fact that Sri Lanka only has a\nnarrow industrial base and that too, at the very low end of the export ladder\nat present. Yahapalana intends to have three industrial zones in Wayamba, also\nindustrial zones in Hambantota, Wellawaya, \nColombo region and Trincomalee . <\/p>\n\n\n\n

Industrialization\nis to be achieved through Foreign Direct Investment (FDI). FDI is essential for economic development\nsays Yahapalana.  FDI\nhas played a key role in fostering development in countries throughout the\nworld said\nYahapalana  Industrialization will also\nhelp the creation of new employment   and generation of wealth. However, economists\nhave warned against the heavy dependence on foreign investments and loans\nparticularly from western sources, in view of the crisis in Greece. Sri Lanka\nwas behaving exactly like Greece and heading for a debt crisis, they\nwarned.  One expert  said Sri Lanka was  heading towards a crisis even worse\nthan Greece. <\/p>\n\n\n\n

According to\nPrime Minister Ranil Wickremasinghe, Sri Lanka is going to sign FTAs with every\ncountry it can think of. FTAs are going to be signed with Bangladesh, China,  India,\nIndonesia Japan,  Korea Malaysia, Myanmar, Pakistan, Singapore   Thailand  and USA. Also a single agreement\nwith ASEAN rather than separate agreements. <\/p>\n\n\n\n

We are negotiating an ECTA with India and a FTA with Singapore.\nSingapore already has a Comprehensive Economic Partnership Agreement (CEPA)\nwith India.  The Singapore-India (CEPA),\nthe Indo-Lanka ETCA and the Sri Lanka-Singapore FTA will create a tripartite\narrangement for trade and investments said economist Harsha de Silva.  This bunch of FTAs will  give companies located in Sri Lanka\npreferential access to a large market of three billion or more. <\/p>\n\n\n\n

Central Bank\ngovernor, Indrajit Coomaraswamy thought the idea of FTAs was good, particularly\nthe formulation of trade agreements with regional economic powers. \u2018The  government is looking to make important trade\ndeals with China, India, Pakistan, and Singapore,\u2019 he observed. The country already has\na bilateral trade agreement with India, which it hopes to widen, and if it\nsecures a similar deal with China, it would be the second country to have\npreferential access to both of these markets, he said.  <\/p>\n\n\n\n

Yahapalana plans to have free trade zones all  over the island. They are not the usual sort\nof  FTZs. \nEach FTZ will be owned by a foreign country which will install its own industries\nin it. Sri Lankans will be factory workers in them.<\/p>\n\n\n\n

The media  reported that a Thai firm had arrived in May\n2017, to build a 1000 acre trade zone in Kalutara, reported the media. This\nfirm is \u2018famous for setting up Economic Zones\u2019 It will first obtain land\nfrom the government on a long term lease then set up \nan international standard infrastructure . They will \u2018bring in around\n25 investors with them\nand will create over 5,000 employment opportunities\nfrom the day the Zone\nis opened.\u2019 Said the media. There would be\nover 20 foreign investors doing projects. The government is \u2018 in the process\nof identifying around 400 acres for this project in the Bandaragama area.\u2019\n<\/p>\n\n\n\n

The Hambantota FTZ  of some\n15,000 acres will be owned by China. China will open up at least 300 factories\nincluding  an oil refinery, a cement\nfactory, a dockyard, power plant and a steel factory said Yahapalana . Yahapalana\nwas at present identifying land from Hambantota, Moneragala, and Matara  to hand over to this FTZ. Just outside\nHambantota, there is another very good block of land, closer to Galle than Hambantota.\nWe want to work on that together with the Andhra Pradesh Industrial\nInfrastructure Corporation, said Yahapalana .  <\/p>\n\n\n\n

Yahapalana  has\nannounced  repeatedly,  that \nthe Yahapalana  economy will\nprovide thousands  and thousands of jobs.\nIndustrialists wanted to know why  Yahapalana was talking of creating jobs for\none million when there were only 400,000 unemployed in Sri Lanka.\nAccording to the Labour force Survey conducted by Department of Census and\nStatistics ,the estimated unemployment rate for the third quarter of 2016 was\n4.5 percent. Our unemployment figures are the lowest in developing countries\nsaid experts.  <\/p>\n\n\n\n

Yahapalana is obsessed with factories. Yahapalana assumes that Sri\nLanka youth will be delighted to work in \nthem.  But analysts point out that\nthere were at present (2017) 58 per cent vacancies in the apparel sector, 20\npercent in food, and 33 per cent in other manufacturing sectors. 20,000 jobs\nare vacant in the garment sector while 700,000 vacancies exist in the private\nsector. There are huge vacancies in\ntourism with its increased rooms. Many manufacturing and service businesses\nalready in operation, are hindered by shortages of skilled labor. Factories are operating below 65 per cent\nefficiency, due to labor shortage. Therefore, Sri Lanka must quickly devise a\nstrategy to increase  the skilled labor\ngroup and   get   them employed on export related industries\nadvised experts. <\/p>\n\n\n\n

The Garments\nindustry provides a good case study.   The garments industry has\nbeen experiencing a labor shortage over the years, especially in recruiting\nwomen for the position of machine operators. Wages paid to machine\noperators  have increased 300% in the past 10 years from Rs 12,000  to Rs 35,000. But factories cannot find\nskilled operators. <\/p>\n\n\n\n

Young girls eagerly joined garment factories\nas machine operators in the early stages of the apparel industry,  but \ntoday these positions are  no\nlonger able to attract young women, said researchers. Today most young women\nhave obtained basic educational qualifications such as G.C. E. Ordinary Level.\nAlong with higher level of education, their career aspirations have also\nchanged. They tend to perceive garment factory work as low skilled. Also  machine operators have to work very hard and\nachieve set targets. Instead, these girls seek \nmore prestigious \u2018computer based jobs\u2019 where they can enjoy more\nflexibility and social interaction. The\nissue of labor shortage has become so severe that the garments industry is\ncontemplating automation. <\/p>\n\n\n\n

 The construction industry also complains of serous\nlabor shortage. The arduous nature of the work and the poor starting salaries  discourage youth from taking up job in the construction\nindustry, said analysts. Youth prefer to be three-wheeler\ndrivers or security guards, rather\nthan work in the construction industry. Driving a\nthree-wheeler is easier,\nunlike working as a mason or helper, they said. Nobody is willing to learn a new trade, construction authorities complained. Skilled workers\ngo overseas, while others choose to operate a three-wheeler.<\/p>\n\n\n\n

These \ntrishaw drivers have been targeted by Yahapalana , for capture  as factory workers. As soon as the\nYahapalana  government  took office, there were complaints about\ntrishaw drivers. It was pre-planned.  People\nwould jump up   at meetings and say there\nwere  too many trishaw drivers and they\nwere all idling.  The trishaw drivers\nparked at the top of my road are always \nbusy. They are never there when I need them.<\/p>\n\n\n\n

 There\nare 1.5 million  trishaws  in Sri Lanka , driven by youths between 18-35,  said Yahapalana . After leaving school they\ndo not take up any training, they choose the easy option of buying a three\nwheeler on credit. They get only three\nto four hires a day, said one. They\nprobably only work two hours a day’ said another. <\/p>\n\n\n\n

The number of Trishaws in the country is  excessive said Yahapalana , confining  a considerable portion of  youth to a single trade. Yahapalana  will discourage newcomers, the old ones will\nstill continue. There will eventually be a glut of three wheelers, but\nYahapalana ,apparently, cannot wait  that\nlong. <\/p>\n\n\n\n

The best way to steer youth    to seek employment  elsewhere is to regulate three wheelers,\ndecided Yahapalana .  Yahapalana\nissued regulations and the media announced, \u2018Tuk-tuks which are used for hiring\nare required to have a fare meter and must issue receipts. They can carry only carry  a maximum of three passengers. Trishaws\ncannot be used for political propaganda work hereafter. The new regulation bans\nthe distribution of leaflets or any other material from a three-wheeler while\nit is moving.\u2019 <\/p>\n\n\n\n

The most important\nmove to strangle  the trishaw trade  however, was  the regulation on leasing. Before Yahapalana\ncame to power,  those intending to\npurchase a three wheeler had to pay only 10 per cent of the value of the\nvehicle, the balance was through leasing. From January 2017  the 10% was increased to 25%.<\/p>\n\n\n\n

Yahapalana \u2018s\nemphasis on factory work is out of date. Sri Lanka is now  a middle income country   and the workforce has now moved away from\nfactory work. Youth are not willing\nto  do blue collar jobs in factories. They would like to be self employed, to\nfreelance and have their own business someday. <\/p>\n\n\n\n

Human resource\nofficers note that there are other considerations as well, such as the quality\nof life. Workers  have  left better paying company jobs and  gone to work from home for lesser pay. Many\nworkers had left en masse from jobs which paid Rs 20,000 when the\ngovernment  created  teaching positions for Rs 10,000. There were\nhidden benefits in teaching. Teacher-parents had  priviledged information on secondary education\nwhich would help their children through exams and of course, there were the school\nholidays. Factory production  is no\nlonger labor intensive  as Yahapalana\nseems to imagine. Modern industries use automation, robots, 3D printing and the\nmodern factory needs computer savvy workers. <\/p>\n\n\n\n

Appendix<\/strong><\/p>\n\n\n\n

Institute of\nPolicy Studies (2019) did a study of three wheeler drivers. The study found\nthat only 47 percent of the over million registered three-wheelers are used for\nhiring. This meant that only around half a million tuk-tuk drivers providing a\ntaxi service in the country \u2013 much less than the one million figure that is\noften quoted the report said. “This indicates that around six percent of\nthe national labour force are tuk-tuk taxi drivers.” The youth who are\ndriving three wheelers are attracted by better earnings and attractive working\nconditions such as flexible hours and less stress.<\/p>\n\n\n\n

Labour force\nsurvey data show that the largest share of three-wheeler drivers is found among\nmiddle-aged (30-40 years) individuals \nMiddle-aged drivers seem to choose driving a three wheeler after\nquitting formal jobs, due to low responsibility, not being confined to one\nspace, and more free time for family. \n“Some three-wheeler operators have tried other occupational\navenues, such as working in factories and as helpers in shops, before becoming\ntuk-tuk drivers,” the report said.<\/p>\n\n\n\n

Middle-aged\ndrivers seem to choose driving a three wheeler after quitting formal jobs, due\nto low responsibility, not being confined to one space, and more free time for\nfamily.  “Some three-wheeler\noperators have tried other occupational avenues, such as working in factories\nand as helpers in shops, before becoming tuk-tuk drivers,” the report\nsaid.<\/p>\n\n\n\n

For 12 percent of\nthem it is a secondary occupation, three wheeler operators are among the top\nten secondary occupations in Sri Lanka.” .Three wheeler drivers are some\nof the highest monthly income earners among low-skilled workers, taking home\naround 30,000 rupees on average. Only shop managers, masons and heavy vehicle\ndrivers earned higher, the report said. <\/p>\n\n\n\n

In August 2019 it\nwas reported that   Yahapalana government\nwas delaying the regulatory system which three-wheeler drives want implemented.\nThere was a Fare Review Committee established in the 2013 but the Transport\nMinistry dissolved it in 2017, leaving three-wheeler operators without a say in\nthe fare increase. ( continued)<\/p>\n","protected":false},"excerpt":{"rendered":"

KAMALIKA\u00a0 PIERIS Revised 9.9.19 Yahapalana\u2018s main, if not sole, economic policy is to go for exports. Central Bank Governor Coomaraswamy pointed out that unless we increase exports, we will not get out of our debt problem, and we will not achieve sustained growth. Developing a national strategy for exports is a key component of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[104],"tags":[],"class_list":["post-66641","post","type-post","status-publish","format-standard","hentry","category-kamalika-pieris"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/66641","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=66641"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/66641\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=66641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=66641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=66641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}