Shrinking local exports of immediate concern : IMF rep
View(s):Sri Lanka’s tax collections have to be improved to strengthen the economy, according to the country’s International Monetary Fund Resident Representative Dr. Koshy Mathai. Further, he also noted that more private investment was needed to speed up projects and, while the local banking sector was already well developed, this sector still had room to grow in terms of areas such as long term finance.
However, it was also Dr. Mathai’s opinion that shrinking local exports, relative to global exports, were among the country’s more immediate concerns, with him also pointing out that Sri Lankan export earnings had not shown any change compared to previous years. More value addition was required. As such, in this context, he recommended the need for continuing the deliberations for setting up a local ‘Tea Hub’, which would allow for price differentiation options.
Dr. Mathai’s comments were made at a recently concluded Tea Exporters’ Association (TEA) event that featured a “large gathering of tea exporters and a few parliamentarians”, according to a statement by the organisation.
He also highlighted the role of the Sri Lankan government in bolstering exchange rate flexibility, which he said was an “excellent move”. He also added that, while it leads to general difficulties in operating import businesses, it was theoretically accepted that “if you help the export sector, it will help your import sector too”.
Also speaking at the event, TEA Chairman Rohan Fernando said that “hardships silently endured by the exporters were mostly overlooked by the decision makers. Although the membership of the TEA, most of who are present in the audience, together account for over 85 per cent of the country’s tea export volume and revenue”.
Additionally, he also indicated that TEA members were “of the view their opinions are not considered when policy decisions are made, the recent attempt to increase the tea export cess being a case in point”. He further added that a “document on the strategy to increase the value of tea exports from US$ 1.5 billion to US$ 5 billion by 2020, through the setting up of a ‘tea hub’, had been presented but was taken on board seriously”.
(JH)
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