EXTERNAL TRADE
Beyond the Horizon
Foreign missions and trade councillors join forces to prop up trade
Located in South Asia, Sri Lanka exports mostly textiles, garments and tea, as well as spices, gems, coconut products, rubber and fish. Its exports are primarily destined for the US, the UK, Germany, Belgium and Italy, whereas the island’s main import partners are India, China, Iran and Singapore.
Today, over 200 vessels navigate its sea route every day with the hope of claiming hub status for Sri Lanka in the Indian Ocean someday amid a shift in the centre of economic gravity from the West to East, as India and China display signs of re-emerging as major drivers of global economic growth.
In August, Sri Lanka’s newly appointed trade minister announced that he would revive the Export Development Council of ministers headed by the president, which had not been convened for 20 years.
Since this statement was made, many initiatives have come to pass. The Sri Lanka Export Development Board (EDB) and Ministry of Foreign Affairs have been working closely to increase the country’s export revenues, and mitigate the impact of the COVID-19 pandemic on the sector.
Several joint initiatives have been taken by the EDB and Foreign Ministry to bolster exports. They include identifying new opportunities, creating awareness by disseminating market alerts, addressing supply chain issues, enhancing capacity building through webinars and establishing business linkages to support existing exporters to sustain their businesses.
During the COVID-19 induced curfews in March and October, Sri Lankan missions and posts overseas continued to share updates and developments relevant to the markets they covered. These updates included relevant opportunities, as well as changes to trade and policy regulations during the pandemic, which enabled Sri Lankan exporters to adapt and take action.
This mechanism also enabled Sri Lanka’s exporters to share their supply capability information with buyers by way of the Foreign Ministry and its network of overseas missions. Export opportunities that were identified and made use of in this manner related in particular to face masks, protective gowns, Personal Protective Equipment (PPE), rubber gloves, hand sanitizers, tea and food products.
Being a key facilitator of Sri Lankan exporters, the EDB arranged to circulate market updates rapidly among exporters through emails and its website, and utilised IT-based solutions to connect exporters and importers by organising a series of webinars in collaboration with foreign trade chambers with the assistance of Sri Lanka’s missions overseas.
When lockdowns were eased in a number of countries, the EDB and the Foreign Ministry continued to collaborate with buyers and sellers virtually, assessing and responding to market trends.
Virtual trade fairs and displays at yearlong virtual shopping malls are being considered as alternatives to physical trade fairs to link exporters with prospective overseas buyers.
Webinars too were organised for the electrical and electronics, ICT/business process management (BPM), printing, boat and shipbuilding, coconut, ceramics and porcelain, logistics and supply chain, marine and offshore engineering, and Ayurveda and herbal product sectors.
With such measures being pursued to overcome the adverse effects of the COVID-19 pandemic on Sri Lanka’s economy, there appears to be little doubt that further steps will be taken to work closely with other relevant local partners, foreign countries and organisations, to explore new opportunities and utilise novel foreign initiatives for the betterment of the nation’s export sector.
