HIRDARAMANI
Q: The pandemic has lasted for some two years… How do you think its prevalence has affected Sri Lanka’s exporters?
A: Indeed, the pandemic has had an adverse effect on Sri Lankan exports over the last two years.
In hindsight, exporters were primarily affected by lockdowns, indiscriminate quarantine procedures, logistic issues, and the lack of a clear strategy to prioritise and safeguard our vital export sector.
Q: How do you assess the impact of the current scenario on apparel and other industries, given that the pandemic and other economic issues have posed challenges for the export sector?
A: In 2020 and 2021, apparel exports totalled approximately US$ 4.4 billion and five billion dollars respectively compared to US$ 5.6 billion in 2019.
In 2022 however, the apparel industry is recovering strongly and should witness one of its best years yet.
Substantial gains have also been made in the export of activated carbon, rubber products and fisheries – both ornamental and edible – as well as food and beverages.
Q: How do you perceive Sri Lanka’s exceptionally broad import ban due to the foreign exchange crisis? And how would this impact the country’s economy?
A: I feel that the current ban on imports will stimulate ceramics, dairy, pottery and electronic items, as well as a few other such local industries.
These industries would see substantially higher revenues and profitability, which will provide a better platform to compete in the international market in the future.
Q: The prevailing economic crisis is perturbing. Can Sri Lanka recover from it, in your view? Do you see any prospects and potentiality in rebuilding the nation with economic sustainability?
A: Sri Lanka must take note of its strengths and geographic advantages, and develop its export strategy accordingly.
We are an island nation situated along one of the world’s busiest shipping routes and surrounded by a tropical ocean. Our workforce is young, literate and easy to train. Our soil is fertile, and fed by an abundance of rivers, streams and ancient irrigation networks.
Q: What strategies and plans are needed to enhance Sri Lanka’s export potential?
A: We see enormous development in fisheries, both through investments in a deep-sea fishing fleet as well as offshore fish farms.
Inland water resources could also be used to develop edible fish and prawns.
Q: You have said that Sri Lanka’s workforce has tremendous potential. How do you see the workforce adding value – and how can workers be assisted to invest in themselves to strengthen the nation’s export potential?
A: Our workforce has demonstrated its capability in the apparel industry. They have the knowledge necessary to work in any form of assembly line manufacturing process.
We could just as easily assemble electronic consumer goods and any other products, as the systems and processes are already in place. All we need to do is provide global brands with the right incentives, and the means to safeguard and grow their investments.
Q: Sri Lanka was once primarily agrarian. In your opinion, where do we stand in the international market in the context of the agriculture and livestock sectors today?
A: Agriculture and livestock, which usually go hand in hand, are still in the dark ages in Sri Lanka. We should invest in the latest farming and animal husbandry technologies, which are used in countries like China and Israel.
The Netherlands for example, which has about 65 percent of our landmass, exports over US$ 100 billion worth of agricultural produce, highlighting the potential we still have here in Sri Lanka.
As we move forward, our focus should not be to get to where we were pre-COVID but take the opportunity to really move towards realising our capacity as a country.
Q: Emerging market economies can offer greater returns and Sri Lanka is in a strategic location in terms of the economy. What support and contribution are needed by Sri Lankan exporters to foray into new or emerging markets?
A: The state needs to be active in providing information, and clear and concise directions; a centralised unit to coordinate with the myriad authorising bodies regarding the necessary approvals to set up and run a business would also be essential.
This may also be enhanced with a national body that has the necessary wherewithal to conduct market research, and identify options within and outside our traditional markets. A national effort to promote local products, as well as bilateral trade treaties and such, will also greatly help local exporters compete on an even platform globally.
Q: Sri Lanka has signed FTAs with India, Pakistan and Singapore; and at present, is negotiating a Free Trade Agreement with China. Should Sri Lanka look to set up further FTAs, in your view?
A: Absolutely. Sri Lanka should look at the possibility of actively promoting and developing trade with Russia and the former Soviet states, Latin America, Africa and Southeast Asia.
Sri Lanka could make the most of its geopolitical position by adding value to Chinese or Pakistani products, and exporting to India and vice versa.
FTA related bilateral treaties and other trade concessions should be entered into after a careful study of the comparative advantages of each country.
