Regaining GSP+ only solution to boost exports, resolve BoP, says PM
Delegates with Prime Minister Ranil Wickremesinghe and organisers of the Summit.
Sri Lanka’s serious issues of Balance of Payments (BoP) and debt servicing can only be resolved by increasing exports with the regaining of GSP+ concession from the European Union (EU), says Prime Minister Ranil Wickremesinghe.
Arriving in the country from China after discussions with the Chinese Prime Minister on Wednesday, the Premier made this statement as the chief guest at the recently held Women Leadership Summit 2017 at the Taj Samudra Hotel in Colombo on the same day.
Mr. Wickremesinghe said, “Sri Lanka is facing very serious issues in BoP and debt servicing that can only be solved by increasing the country’s exports.” It also solves the connected question of the pay for workers which seems to be a vicious circle. Only through exports,the country can get into position to offer better remuneration to the workforce, he added.
He also mentioned that the UK assured that trade preferences that were enjoyed by Sri Lanka will be maintained even after the exit of Britain from the EU. EU is the richest market and getting back the GSP+ is a significant landmark for Sri Lanka and it is the beginning of an export oriented economy, the PM noted.
“We have to aim at all of us becoming exporters with not just some of the enterprises in the domestic market which compelled a large number of the country’s female workforce to go abroad and work in domestic positions.We didn’t have the courage to become exporters. With the GSP+ we will have access to 6000 products while looking at new product range in the apparel and fisheries sector,” stressed Mr. Wickremesinghe while elaborating that the existing exporters must utilise the concession by increasing the export volume and earnings. He also stated that the domestic manufacturers shouldalso start exporting.
The country is looking at new sectors that encourage foreign investment such as tourism which has the potential in the short term to generate employment and income. Tourism is an area where women can participate in a significant way. Digital economy also has a high level of women participation. “In order to attract FDI (foreign investment) and enable our existing manufacturers, entrepreneurs, people involved in the digital economy, we need to create a better policy environment and make Sri Lanka the hub of the Indian Ocean,” Mr. Wickremesinghe added.
He also mentioned that Sri Lanka has the South-West economic corridor starting from Kandy all the way to Hambantota with two airports and harbours. Hard infrastructure development of the North-East corridor around Trincomalee is commencing focusing on logistics and connectivity. “We need to deepen the trade and financial connectivity in a way that our domestic enterprises benefit, removing the administrative barriers, the red tape, ensuring the ease of doing business and making the banks more competitive,” noted Mr. Wickremesinghe.
South Asia is now the fastest growing region in the world. To sustain it, two major factors; participation of women in economic activities and trade integration have to be considered, Mr. Wickremesinghe stressed .He also encouraged the increasing number of women participating in the labour force and entrepreneurial space.