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| Friday, 9 January 2004 |
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Unite to exploit SAFTA tariff concessions -Ravi Karunanayake It's high time Sri Lankan businessmen unite to draw up strategies to use SAFTA tariff concessions to exploit maximum trade opportunities in the region said Minister of Commerce and Consumer Affairs Ravi Karunanayake. Sri Lanka is the main "gateway" to enter India now, but it would not remain forever. He said the country should gain maximum benefit before this happens. The current position of Sri Lanka as the main hub to enter the one billion Indian market is likely to get eroded in the future as several developments in the economic front are likely to take place in the South Asian Region, especially in neighbouring India. Currently Sri Lanka enjoys the position of providing worldwide investors the best possible location to enter the huge Indian market at lesser cost by using its micro and macro factors. Among the macro factors remains its strategic geographical location, the Free Trade Agreement with India which gives Sri Lanka the opportunity to export a large number of products at zero or reduced duty rates, while micro factors counts for cheap but skillful workforce, good port facilities and the government's strong investor friendly policy and also the peaceful situation in the country. This situation helped Sri Lanka to bring in foreign investments into the country especially during the last two years as no other regional country is still able to offer similar facilities to investors to enter the Indian market at a lesser cost so that they could compete with their competitors. However, it is likely the situation would not remain the same with the passage of time when India reduces her Most Favoured Nation Import duty rates in the future either through trade negotiations or voluntary liberalisation. The matter would become worse when India enters into an FTA agreement with ASEAN countries. Meanwhile, other South Asian countries such as Pakistan are also in the process of liberalising its economy and also building its relationship with India. In this situation, Minister Karunanayake said it is time for local businessmen to act. They should exploit opportunities and build relationships with the Indian importers and investors and try and exploit the tariff concessions which are very attractive at present". Karunanayake said the private sector should also try to use their influence to bring in foreign investors to the country by explaining to them that they could easily enter the huge Indian market by using Sri Lankan soil. |
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