Economic gloom the stimulus package failed to brighten
Industrialists as well as the business community are wary of the so called 'economic stimulus package' offered by the government last week given the global economic meltdown and its impact on various sectors of the Sri Lankan economy.Given the present global conditions, analysts have warned that the country would be badly hit due to the global economic recession by 2009. Already, out of the original 800 garment factories set up in the country only around 275 are in operation as at end 2008.
Industry experts say 2009 would be a decisive year for the export industry. The tea industry is in crisis and has already sought urgent government assistance. According to tea small holders, the government's intervention came a bit too late, as three months had already passed.
Like the tea industry, the rubber industry too is facing a severe crises due to the fall in prices. Rubber manufacturers say that the government's move to provide subsidised fertiliser is useless. They say that the government has to come up with a new pricing formula, as the issues faced by the industry are mainly due to the drop in sheet and crepe rubber prices.
The apparel industry unlike the tea and rubber industries has been facing problems even before the global financial crisis. These problems have been aggravated by our largest market, the US reducing its purchases.
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