Concessionary finance to help companies compete
View(s):Sri Lanka has embarked on an ambitious trade adjustment initiative providing concessionary finance to help companies affected by competition enhance their competiveness while arming workers with tools to re-skill them.
This will enable the smooth transformation of firms and workers to the new market conditions created by trade liberalisation, Finance Ministry sources said adding that it provides protection for employees and firms who are likely to be affected by free trade agreements.
The Government is implementing an economic programme that includes gradual liberalisation of the economy to attract private investment and instill more competition, but whilst providing a safety net for those adversely affected by competition, they said.
“Several sectors which are labour-intensive face a high level of protection from increased international competition following from trade liberalisation which can impact wages and jobs,” one source said.
A series of trade agreements are being negotiated to enhance market access to attract investment into sectors of higher productivity, taking advantage of Sri Lanka’s strategic geographic location.
(BS)