Sri Lanka’s “living” export strategy to set $28 bn target by 2022
Sri Lanka will launch its National Export Strategy (NES) next month aimed at ensuring US$28 billion in export values by 2022. The document was sent to the Cabinet on Tuesday for approval to commence achieving targets set out for the next five years.
Export Development Board (EDB) Policy and Strategic Planning Director Dayani Wegapitiya told the Business Times that the NES is a “living document” in that it has been designed in a manner in which its strategy could be updated and changed with time and has been established through the participation of all stakeholders public and private.
In future it would be implemented through the active participation of the public and private sectors. The launch of the new strategic plan would be held at a ceremony on July 19 at Temple Trees, it was stated.
She noted that the NES focusses on six key sectors for innovation and export diversification: ICT/BPM, wellness tourism, boating industry, electrical and electronic components, processed food and beverages, and spices and concentrates.
Further, authorities would be looking for more diversified markets to enter like China, India, Myanmar and Japan.
The plan is to ensure Sri Lanka becomes an export hub driven by innovation and investment, she said outlining the plan of the NES.
The export target for the next five years are $17.4 billion in 2018, $20 billion in 2019, $23.1 billion in 2020, $25.4 billion in 2021 and $28 billion by 2022. Export revenue reached $11.4 billion in 2017.
Merchandise and Services exports are expected to grow by 15 per cent in 2018, 2019 and 2020 with EU GSP +, growth in NES focused sectors, favourable impact from new FTAs and US GSP.
From 2020 onwards to 2025, merchandise and services exports are expected to grow at a stable rate of 10 per cent annually.
As part of the strategy the budget proposals too had been implemented to ensure the different sectors could thrive in exports and grow at the targeted rates.
In this respect, the budget allocated Rs.470 million to implement the “Export Market Access Support” programme; establishment of the “IT Initiative Programme” costing Rs.300 million.
In addition the electronics industry is hoping to attract new investors already part of the global network to be engaged with local partners through joint ventures with Sri Lankan Electronic Exporters and Manufacturers for which Rs.25 million has been allocated. This would be carried out through the Ministry of Development Strategies and International Trade (MODSIT) together with the Board of Investment (BOI) and the EDB as well.
Moreover, the EDB will create a dedicated industry zone for boat building through a Rs.79 million budgetary allocation to establish infrastructure facilities for the Boat Building industry in the Koggala Industrial Zone and Weligama.
The establishment of a trade portal on the E-Trade Information and Promotion Platform has been allocated Rs.25 million. Another Rs.25 million has been set aside to launch a credit scheme titled “Arabuma” through the EDB.
A key component of the strategic plan is the implementation of these targets and projects that has been detailed through the creation of 19 advisory committees considered essential in strategic planning, Ms. Wegapitiya explained.
The monitoring unit for implementation would be established at MODSIT and would comprise: two EDB officers, two BOI officers, one private sector official, a Chamber of Commerce representative, one from the government programe management and two consultants from the International Trade Centre.
The plan has been drafted through funding and assistance and in consultation with the International Trade Centre and the EU.