Sri Lanka should learn from other experiences and trends
View(s):Sri Lanka should learn from the trends and the experiences in the other parts of the world and make the correct strategies to achieve good results, the head of a local chamber has said. “Every change in the world can create opportunities or threats to us. It is very important for the policy makers to think right and do things right for the benefit of the country rather than looking from a political eye,” said Keerthi Gunawardane, Chairman – International Chamber of Commerce Sri Lanka, in a media statement. He was referring to a recent report from the International Chamber of Commerce which talks about the current difficulties in the world starting from the recent devaluation of the Chinese Yuan.
China, the second largest world economy accounts for 15 per cent of global GDP and 50 per cent of growth and perhaps more acutely, close to 45 per cent of Asian GDP, the fallout in terms of trade impact can be expected to be significant, he said. “Previously high performing emerging markets of Russia, Colombia, Brazil, Turkey, Mexico and Chile have fallen between 20 and 50 per cent against the US$. The Indonesian Rupiah and Malaysian Ringgit are at their lowest level since the Asian financial crisis of 1998.
Even Australia, one of the 10 largest advanced economies has been impacted with the Australian dollar at its weakest level since April 2009,” he said quoting the report. With the lapse in US EXIM Bank’s authority, as of July 1, 2015, the US EXIM Bank is unable to take on new trade-facilitating business for US exporters. This is a practical concern going forward when one sees that US exports dropped 5.6 per cent to $895.7 billion in the first seven months of 2015, he said.