Sri Lanka missed export earnings target by US$ 400 million, thanks to politics: Minister
Minister of Development Strategies and International Trade Malik Samarawickrema speaks at the event. EDB Chairperson and Chief Executive Officer Indira Malwatte, Deputy Minister Nalin Bandara and other officials also look on. Picture by- Chaminda Niroshan
COLOMBO, Jan 4, 2019, The Island. Our export earnings target for 2018 was US$ 17.4 billion in merchandise and service exports. We were able to achieve US$ 17 billion and missed it by US$ 400 million, thanks to the political crisis the country was pushed to face towards the latter part of the year, Minister of Development Strategies and International Trade Malik Samarawickrema said yesterday, reported The Island.
“If not for it, I’m sure that we’d have been able to achieve the target, the minister said.
Samarawickrema made this remark at the Sri Lanka Export Development Board (EDB) head office where EDB chairperson Indira Malwatta and her senior colleagues announced the progress and achievements of the National Export Strategy (NES) launched in 2018 and the EDB’s objectives and targets for 2019.
Responding to a question posed by The Island Financial Review, the minister said that the government is on the same page in trying to adopt an outward looking approach to international trade in order to penetrate the global market. However, when asked if President Maithripala Sirisena who is in the process of reviewing free trade agreements (FTAs) was also on the same page with the minister’s export earnings target for 2019, he chose not to answer it.
However, he thanked the exporters, export trade chambers and EDB officials for being resilient through the crisis to achieve the highest ever export earnings Sri Lanka has recorded to date.
“In 2018, we launched the National Export Strategy and Market Access Support Scheme which have been important initiatives in creating and facilitating the next generation of entrepreneurs to become exporters. We have begun to see some real positive impact of this exercise on the ground. We now have Cabinet approval for another initiative to facilitate an Enterprise Innovation Scheme which will soon get underway. Sri Lanka hasn’t had a systematic approach to boost exports in decades. You should note that such initiatives won’t lay concrete on the ground leading to the manifestation of fancy projects. But these moves are the real nuts and bolts that will help increase GDP growth and high-paying jobs in the export sector. In 2015, our export value stood at US$ 13.4 billion and in three years, it has increased by 29%”. But that doesn’t mean our task ends there. It has just begun, he said.
“Sri Lankan companies are good at many things and there’s global demand for Sri Lanka’s niche products – from primary products to sophisticated goods, components and services. Some of our companies have already taken their brands to the global market and have positioned them abreast of other international brands. But the government has to support these companies in countering challenging global conditions and headwinds in the external environment”, the minister said.
“New export processing zones in Millaniya and Bingiriya are expected to see a lot of activity this year.” he said.
EDB chairperson Indira Malwatta who emphasised the need to expand the export basket said the EDB has already discussed favourably with a German company and a local rubber company to set up an automobile parts manufacturing plant in Sri Lanka. “We may not be able to build cars yet, so lets us begin the journey by parts manufacturing”, she said.
The EDB has set its export earnings target for 2019 at US$ 20 billion.
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