New regime’s foreign policy frees exports markets in the US and Europe
The new Government is geared towards protecting economic and business interests while the foreign policy will take care of accessing markets in Europe and in the United States for local exporters, which has been under threat in the past, according to Depty Minister of Investment and Highways Eran Wickremaratne speaking at a media seminar on “100 Days and Beyond” in Colombo this week.The Deputy Minister said that it was only through exports that people will be able to enjoy higher living standards similar to what people in other parts of South East Asia enjoy.
Sri Lanka can be considered a village of 21 million people compared to cities in China and India that have a similar population. “We have to find new markets to expand our trade. With China and India growing rapidly we have to find new opportunities and new investments. ”
He said although the cessation of hostilities ended five years ago there hadn’t been any foreign direct investment in the country. “The former regime depended on foreign borrowings and as a result Sri Lanka’s debt began to soar. But our government’s policy is to attract foreign equity and foreign direct investments. Exports and investments will have to go hand in hand.”
Countries in the South East Asia such as Thailand, Vietnam and Malaysia attract foreign investments three times more than Sri Lanka.
Something had gone wrong even during the post war era as Sri Lanka hasn’t been able to attract foreign investments. “That is why we are looking at barriers and constraints of attracting foreign investments. We want the private sector also to attract foreign investments.”
He said a big shipping company had already signed up with the Board of Investments (BOI) to set up their regional office in Colombo. “We are the best port in the region with 14 shipping and feeder lines. Referring to the change of government, he said the majority of people who voted for a change of government on January 8 was not reflected in the election results as it was not a free and fair election.
Although election rules were blatantly violated Maithripala Sirisena was elected as the President of Sri Lanka. He said Sri Lanka was the only country in South East Asia that does not provide information to its citizens and thus an Information Act will be presented in the parliament to provide information to people.” Deputy Minister Policy Implementation and Economic Affairs Dr. Harsha De Silva said the reason for the downfall of the previous government was because the masses did not benefit from the development from the projected 7.5 per cent growth.Although ports and highways were built the household incomes did not benefit at all. The household incomes grew only at 0.05 per cent during the past six years. There was a major contradiction between 7.5 GDP growth and 0.05 per cent growth in household incomes. People had to borrow money from banks for consumption purposes. What the state media projected about development that time wasn’t the truth, he said. “We want to create a competitive economy and social justice that will benefit the country,” he said.