May 29, 2009 (LBO) – Sri Lanka’s government said it plans to ask parliament for extra funds to pay for a bailout package to help exporters cope with a downturn in trade caused by recession. Cabinet spokesman media minister Anura Yapa said the cabinet this week had approved the mechanism through which exporters can get the benefits of what it calls a ‘stimulus package’.
The scheme will be implemented through the commerce department, Yapa told news conference.
According to the proposal by the ministry of export development and international trade that has been approved by Cabinet, the government is seeking eight billion rupees in a supplementary estimate.
This is for the payment of rewards under the Export Development Reward scheme designed to help exporters cope with the current crisis.
The package includes a reward scheme to grant a five percent export incentive for exporters this year if they meet eligibility criteria.
These include maintaining export earnings similar to last year’s levels, maintaining current employment levels and meeting specific domestic value addition criteria for different sectors.
Exporters are required to register with the commerce dep