Bankers association holds public seminar on finance and economic issues
View(s):The Trade Finance Association of Bankers held its annual Public Seminar recently at the ‘Golden Rose’, Boralesgamuwa as part of its 20th anniversary celebrations on the theme ‘International Trade at the Tipping point’.
Jonathan Alles Managing Director/CEO, Hatton National Bank, delivering the keynote, said that the government policy is to grow exports through Public Private Partnerships (PPP) and Foreign Direct Investment (FDI). The government’s ‘Vision 2025’ targets exports of US$20 billion and FDI of $5 billion per annum, thereby raising the per capita income.
It plans to enhance capacity by embracing new technology, making value additions to the traditional basket, establishing regional value chains and a global production networks, he was quoted as saying in a media release issued by the association.
In setting up of manufacturing industries through PPP and FDI, focus will be on the priority areas for investment and the government has set up a PPP Unit under the Ministry of Finance. The government plans to integrate with the Global Production Networks through export oriented industrialisation. It will focus on the Ease of Doing Business Index and formulate a new trade policy and the National Export Strategy to make Sri Lanka a global trade and logistics hub.
With regard to GSP+ and Free Trade Agreement (FTA)s, access to the European Union has not been exploited to its true potential. Indian and Pakistan FTAs have been disappointing. FTAs with China and Singapore are being pursued. Free markets, protectionism, anti-dumping laws are being formulated. With regard to infrastructure development which is necessary for high rate of economic growth, administrative and legal frameworks are being formulate with policy or regulatory support to boost public and private investment, he said.
He said the concerns that need to be addressed are; the large fiscal deficits, inflationary pressure, large import content, strain on the trade balance and balance of payments and high foreign debt servicing costs. “Hence we must prioritise infrastructure investment which should lead to higher export earnings; reduce import expenditure and improve ports and transport infrastructure,” he said.
The keynote was followed by a presentation on the ‘Emerging Developments in Trade – Implications for Sri Lanka by Anushka Wijesinha, Economist, Ministry of Development Strategies and International Trade. He amplified some of the issues raised in the keynote with regard to the government’s plans to develop international trade and how the trade practitioners can contribute to its success.