Elimination of para tariffs likely to boost national exports
Governor of the Central Bank of Sri Lanka Dr. Indrajit Coomaraswamy recently stated that export transformation is crucial for Sri Lanka to achieve its potential growth rate.
Addressing a forum for CEOs organised by the National Chamber of Exporters (NCE) of Sri Lanka, he explained that the debt trap in which the country finds itself can only be resolved by encouraging and boosting exports. However, para tariffs pose a hindrance in penetrating regional and global supply chains, which is among the most dynamic components of international trade.
The government is working towards eliminating these tariffs so that Sri Lankan exporters can aggressively enter regional and global supply chains, and ultimately help achieve the desired growth rate.
“It is up to the government to create a policy framework by giving a competitive exchange rate,” Coomaraswamy noted, adding that the country has tremendous potential in terms of markets, supply chains, and regional and global production networks. According to him, Sri Lanka’s potential and access to large growing economies within 20 miles, access to the Middle East, ASEAN, East Africa and China, and its strategic presence along the Silk Route are among the reasons that others continue to lend to the nation despite recent events.
“However, the sector needs to speed up while the government should show more consistency and predictability in terms of providing a policy framework to build the economy,” he added