Sri Lanka to introduce an export strategy soon, says Minister Samarawickrema
A section of the audience at the awards ceremony. Pic by M. D. Nissanka
Sri Lanka is set to introduce an export strategy to provide a coherent framework in the area of export promotion and create an export friendly environment in the island. The Export Development Board (EDB) is in the process of devising this strategy on the directions of the Ministry of Strategic Development and International Trade, said its Minister Malik Samarawickrema at the 21st Presidential Export Awards ceremony in Colombo on Wednesday.
One-stop shops in the Board of Investment (BOI) and the Central Clearance Unit in the Customs would be fully operational by the end of this month, he said adding that all laws and regulations are being reviewed to speed up processes and procedures. The system of tariffs and para-tariffs is to be made more export-friendly giving priority to fiscal consolidation, he revealed.He noted that the country has very little scope to continue borrowing as it has done in recent years. ‘We have to earn rather than borrow, the foreign exchange we need to pay for the imports, we require as well as to service the foreign debt we have incurred,” he said adding that every year for almost 30 years Sri Lanka has borrowed to meet its current expenses.
He expressed the confidence that Sri Lanka would be able to achieve strong macro-economic fundamentals, improve investment climate and boost trade facilitation and exporters will rise to the challenge.Sri Lanka needs to have its presence in regional and global value chains significantly as the modern world is characterised by production-sharing networks. However he noted that the country should improve export performance which is disappointing at present.In his speech, President Maithripala Sirisena stressed the need for the joint efforts of both the public and the private sectors in the country’s economic development.
Sri Lanka’s private sector should pay special attention on the manufacture of new innovative products needed for the present commercial world while continuing the traditional export industry. The President further said that the government is ready to provide its fullest support in this regard.He said the government will take every possible step to promote the export industry which is the foundation of the national economy.
Measures will be taken to strengthen the export firms and provide the necessary guidance and technical knowhow to them while broadening the strategic economic development methods, he added.
He presented awards to 24 institutions which excelled in export business, particularly in non-traditional products and services and rendered a great service to the export industry of the country. The Brandix Group received the most number of awards. Brandix’s CEO Ashraf Omar revealed that Sri Lanka’s remote and backward areas have much needed potential and resources including land, infrastructure and human strength for investors to launch business enterprises.Those remote areas are suitable to set up industrial ventures with local or foreign collaboration due to availability of workers, land allotments, and other facilities, he pointed out. Comparing export performances of countries like Singapore, Malaysia, Vietnam and Finland, Sri Lanka has to expedite its efforts to increase export value and volume, he said, adding that the island nation should achieve the target of US$25 billion in the next five years from the present value of $11 billion.