Sri Lanka could become a junkyard for used goods, industrialists warn
Sri Lanka’s business community and industrialists are not happy at the free trade agreements (FTAs) reached with other countries as they do not benefit the local industry and the country’s overall economy, it was revealed at a forum last week.
At the Sri Lanka Economic Forum 2017 in Colombo, Kulatunga Rajapaksa, Managing Director, Samson Group, in his presentation on “The Political Economy of Managing Middle Income Country Aspirations” expressed his displeasure over the FTAs entered by Sri Lanka with other countries.
Samantha Kumarasinghe, Managing Director, Nature’s Secrets also strongly supported the views expressed by Mr. Kulatunga.
Mr. Kulatunga, driving hard the point he stressed on the futility of FTAs, said that the statistics showed that from 2009 to 2015, exports to India has been very marginal at about US$ 500 million. It was static for the last 14 years without any improvement and, though everyday there has been talk that the quota would be lifted to increase export limits, selling to India is filled with restrictions.
He pointed out that the FTA with Pakistan hardly derived any benefit and added that the government is negotiating an FTA with Singapore – a country with no industries but only warehouses. He said they could export only repaired or reconditioned machinery whereas in Sri Lanka there is no way to check the level of recondition items and would therefore end up in this country’s junk yards. Sri Lanka would soon become a dumping ground as the country doesn’t have anti-dumping laws.
Discussing the proposed FTA with China, he said that the business community here doesn’t see any benefit from it. He suggested that the government must be looking at political advantages rather than economic advantages by entering into some of these FTAs with other countries.
Dr. Dayan Jayatilleke, former Ambassador/Permanent Representative to Geneva, in his keynote address made a long analysis of the political situation in the country and said the present government is doing everything wrong while the opposition doesn’t have any solutions.
The session was moderated by Prof. W. D. Lakshman, Chairman, Sri Lanka Economic Forum Committee.