Sri Lanka needs an economic miracle and there’s plenty around (for the taking, not talking)
View(s):GSP+ is the lynchpin towards building Sri Lanka’s outward- looking, export oriented economy which will provide jobs and increase incomes.
“We are entering the richest European consumer market in the world which we have been building for over 2000 years dating back to the Roman Empire,” said Prime Minister Ranil Wickremesinghe at the launch of the “Sri Lanka -The Next Asian Economic Miracle -Resetting Economic Development Priorities” seminar held at the Hilton Colombo Residencies recently.
He said the other key factor was that global trade is going to depend on the European Union (EU) in which China, Japan and India are the drivers of this trade when the country is in the middle of it in the Indian Ocean. “The GSP+ in the key to us because we have the ability to develop our economy and develop and strengthen our democracy with open markets with open societies and we are committed to both.”
He said this posed a challenge for the domestic investor. “How do we utilise this opportunity?”
In the 1970′s gaining access to western markets was a difficult task but there was a way through the Multi Fibre Agreement and the industry was built on apparels and rubber based products. These are the two big industries that Sri Lanka has.
He said the GSP+ concessions impact on 6500 products in the pipe line although the country cannot manufacture all of them. A lot of foreign investors are interested in coming over to Sri Lanka to collaborate with local business partners apart from the GSP+. “We have to ensure that our private sector is strong enough to invest. When you look at the global picture you understand why we want the trade agreement with India, China and Japan.”
He said there are regulations in the government that are barriers to competitiveness, to productivity. “But the Finance Ministry and the Ministry of Development Stragety and I are going to re-look at it so at the next budget there will be another round of trade liberalization. I want to make a new economic policy followed by the budget.”
Referring to the fiscal policy, he said Sri Lanka has been having a tight fiscal policy because of the debts that it has to pay.
He said there should be a workforce dedicated to productivity. With regard to tourism he said only one flight from Sri Lanka to European destinations was available and other direct flights from Europe to Sri Lanka are welcome.
Vice President of the European Chamber of Commerce of Sri Lanka, Arnold Perera said that Sri Lanka was undergoing a rapid economic transformation and there is hope among the business community that the economy was on the right path and there is ample room for an economic miracle to take place.
“We are happy that the GSP+ facility was restored and thank the EU and the government of Sri Lanka for it. We have had discussions with the European Investment Bank in Sri Lanka and in Luxembourg who are anxious in provide financial assistance to selected public -private partnership initiatives.”
European Ambassador to Sri Lanka and the Maldives Tung Lai Margue said the EU remains a strong trading power house that accounts for 60 per cent of the world’s trade goods and services. It is the second largest importer after the US and the second largest exporter after China. He said GSP+ granted to Sri Lanka this year can boost Sri Lanka’s trade and the fisheries exports from Sri Lanka to EU has shown a significant progress. He said 31 million jobs in the EU depend on their exports. The EU concluded a trade pact with Canada and will soon enter into another trade pact with Japan, he said.
Minister of Development Strategies and International Trade Malik Samarawickrama said that Sri Lanka has a small domestic market with a population of 22 million people and exports was therefore vital for economic development. (JJ)