FOREWORD
Time to Refresh
Ramya Weerakoon maps out the priorities to revitalise the export sector
The coronavirus pandemic has had a catastrophic spillover effect on international trade amid sweeping changes in the global economy, the aftermath of which may be even more profound in times to come.
We live in a world confronted by a major disaster affecting millions of lives and scores of economies. Sri Lanka too witnessed a noteworthy impact with exports slowing down due to the closure of major export destinations.
The apparel and textile sector is one of the largest contributors to the nation’s exports, and it experienced a major setback as a result of plunging global demand and supply chain disruptions.
However, it is worth noting the resilience displayed by Sri Lankan exporters – they successfully overcame the formidable challenges that confronted both the local and global economies.
In this regard, the efforts of the Government of Sri Lanka – which implemented several strategies to support the country in preventing the spread of the coronavirus and responding swiftly to the COVID-19 pandemic, and reinforce the health and safety of the general public – are commendable.
The National Chamber of Exporters of Sri Lanka (NCE) together with other stakeholders played a pivotal role at the height of the COVID-19 crisis and resulting curfew by supporting the national endeavour to navigate through the outbreak, facilitating people and corporates by way of establishing various mechanisms.
NCE made representations on behalf of its member exporters to the government including relevant state authorities in support of sustaining respective export enterprises. These measures and the assistance provided by the government facilitated the sustainability of businesses during the crisis.
Yet, the immediate future will be challenging for Sri Lankan exporters as most export destinations have been affected by trade restrictions due to the adverse impact of the pandemic. Therefore, it would be prudent for Sri Lankan exporters to innovate by differentiating their products and services, and identifying the upsurge in demand from global consumers to respond accordingly.
Product and market diversification appears to be a timely strategy in responding to new demand, and there’s a greater possibility of unearthing niche markets for novel needs as a result of new norms.
Agriculture and processed food products will also have potential given their inherent health benefits, as well as specialised products required by the healthcare sectors of importing countries.
A positive mindset and out-of-the-box thinking are essential for exporters to adapt to new demand and overcome future challenges. For this purpose, we hope that the government will formulate and implement a comprehensive fiscal stimulus package to revive the export sector.
NCE stands in good stead for exporters and to assist the government along with the relevant state authorities to achieve the future objectives of Sri Lanka’s export sector.
