Sri Lanka in uncharted territory – PM

While emphasizing the need for exports to roll out of Sri Lanka and reiterating on the potential for domestic manufacturing industries which will generate more employment in the future, Prime Minister Ranil Wickremesinghe said the country is in uncharted territory.
In his keynote at the closing session of the Sri Lanka Economic Summit held at the Cinnamon Grand in Colombo on Friday, the PM said: “The problem in Sri Lanka is the limited exports we have, mainly being tea, apparel and solid tyres. Until we get out of that framework the country will be nowhere. Sri Lanka is now in uncharted territory.” 

The domestic manufacturing industries must be supported as they are the employment generating industries of the future, he added.
Sri Lanka’s competitiveness in the world market and exports will solve the debt trap. The country has to settle nearly US$4 billion debt servicing by 2019. By 2025 the country must have a positive record and make the debt 55 per cent of the GDP, he stated. 

Mr. Wickremesinghe asked, “Where will Sri Lanka be by 2019?” Pointing to the Bangladesh and Vietnam economies during the 90’s and how these two countries have gone far ahead of Sri Lanka, he noted that they have become more and more competitive to Sri Lanka. Today Vietnam is the second largest exporter of rice and coffee in the region, he added. 

Sri Lanka has had problems due to the heavy drought that affected the rural economy and discussing this at a time when preparations are underway for the next budget which is to be presented in November. The new tax system will also be amended in the next budget.

Sri Lanka must attract more and more foreign direct investments (FDIs) which will expand the products and services that are available in the country, he noted while adding, “We are working around a single window for investments. Investments by law that will look at some of the aspects of the ease of doing business.”

He emphasized that both the government and the private sector must speak in one voice. “One of the niche markets of growth is tourism and IT industries. There are also issues in the interest rates and exchange rates. We need to keep an eye on the global economic landscape,” he noted. (Raj)