Sri Lanka must get support from SAARC
View(s):Even though Sri Lanka had been honest to the world and declared Bankruptcy, lets also note that there are 61 countries as per World Bank that is moving in the same direction as Sri Lanka. Whilst this must be a fact, Sri Lanka needs all the support it can have to ride the challenges in the next three months. Let’s accept it but we are negative in our coffers and we are in debt to the world.
The New President of Sri Lanka must reach up to SAARC to drive exports
SAARC- $1000 bill
The World Bank and ADB estimate regional GDP of SAARC to be worth $ 1,000 billion plus while GDP growth for the last 20 years has been around 5%. Intra-regional trade represents only a meager 5.3% whilst the EU is at 55%, NAFTA stronger at 60% and ASEAN is at a low ebb of 35%. It’s time that SAARC supports Sri Lanka not financially but the strategic initiates. Let me share them.
1) SAARC – Free Trade Secretariat
SAARC trade as a percentage of South Asia’s world trade has steadily recorded an upward trend from 2.42% in 1990 to 7% plus today. The poor performance on integration of trade in South Asia can be attributed to poor leadership. What Sri Lanka must do is to drive trade under the FTA with India and Pakistan and slash at non tariff barriers.
2) SAARC – Development Fund
The idea of establishing a South Asian Development Fund was mooted as way back as 1991 and thereafter the SAARC Finance Ministers endorsed a roadmap for the creation of the SDF but is yet to be operationalised. Sri Lanka must push for this.
3) SAARC – Disaster Management Centre
I remember post the devastating Indian Ocean tsunami in 2004, a special session was held among SAARC Environmental Ministers in Maldives in 2005. This gave birth to the Malé Declaration, which includes areas like an early warning system for disaster prevention systems. We must get this on course as the region is very vulnerable.
4) SAARC – Poverty Fund
Poverty eradication has been on the SAARC agenda as way back as 1991. However, the only concrete step that has happened is the setting up of the Three Tier Committee that has been followed up with many recommendations. Sri Lanka SME’s exports to the middle income consumers in India can boot income and help manage the 74% food inflation that hit Sri Lanka last week.
5) SAARC–Food Bank
The SAARC food security reserve was established as far back as 1988 to meet the emergencies of member countries. However, it has taken a full 14 years to make this operational, like identifying institutions which will manage this and requirements for withdrawal from the reserve. It’s time that we draw from the pot given that Workd Bank reported that almost 6 million people have hit poverty in Sri Lanka.
6) SAARC – Energy market
With over 72% of the South Asian region’s people living in rural areas without adequate access to electricity, it is time that South Asia develops an integrated strategy given the jagged crude prices. May be we can start by linking Jaffna with South India as a pilot project.
7) SAARC – Anti-Terrorism Unit
If this unit was in play Sri Lanka could have averted the Easter attacks in 2018. Unfortunately the lack of political consensus, a non-comprehensive strategy have made this a non starter
Conclusion It is often said that one can choose one’s friends but not one’s neighbours. Whilst it might be not a palatable statement, the challenge is how we make our neighbours our friends so that Sri Lanka can ride the economic challenge in the next three months.
- Dr Rohantha Athukorala
(The author is a Former Chairman of
Sri Lanka Export Development Board and SrI Lanka Tourism)
HitAd.lk is the best and biggest mobile phone market in Sri Lanka, and we guarantee you will find what you need here from our extensive listing of mobile phones for sale in Sri Lanka. Whether it’s a budget-priced smartphone for communication, or higher end features with advanced connectivity, there are many different options from which to choose from on our site!