Export of services

THE term exports conjures up an image of containers stacked at the port, awaiting shipment to far-off lands.

This description no longer holds true in today's world, for physical exports are only one part of the picture. Services and other products such as software are also exported from Sri Lanka to all parts of the world.

Export development should necessarily encompass the service sector. Elsewhere on these pages, an Export Development Board expert has pointed out that Sri Lanka has significant potential to increase its services exports, earn foreign exchange and provide employment to skilled workers. Furthermore, brain drain can be contained in the process.

The export of professional services is a growing trend worldwide. Accountancy, legal services, construction related services (engineering, architecture, surveying), IT and software development services are among them.

Sri Lanka has a highly professional workforce in these sectors, with all qualifications. It is no secret that they are in high demand overseas, especially in countries which do not have an adequate professional cadre.

However, if these experts can instead export their services without actually migrating in the process, the country can gain in two ways - foreign exchange is earned and brain drain is averted.

Rapid developments in the information technology and communications have made this possible.

However, many companies and personnel are still not aware of the massive potential for service sector exports. This must be rectified without delay to reap the full benefits of the new globalisation trends.

IT and software development should be given priority in this regard, since Sri Lanka has several world class software development firms.

Truly innovative software can conquer markets worldwide and there is virtually no limit to the potential income. IT firms and indeed all other service sector companies that break into the lucrative export market should be given substantial concessions and incentives.

This brings us to the whole issue of a coherent strategy for export development. A national policy in this regard is vital.

The new Government has identified exports as a vital component of the economy and it is heartening to note that our exports, physical and otherwise, have been growing steadily.

With the emergence of globalisation and possibly a tariff-free world trade order, it is vital to reinvigorate the export sector. Many reforms will be required to achieve a sustainable economic growth through exports.

The wheels of bureaucracy must also move fast for the speedy processing of exports. A sizeable public service, coupled with the number of departments and agencies which control the export process, does not make life easy for the exporter.

It is therefore advisable to offer all export services under one roof. This will reduce the time taken for formalities and documentation.

Adopting the latest marketing tools is also important. A presence on the web, for example, allows foreign buyers of services and products to get an insight to the business scope of a given exporter.

The Government and the private sector, service companies included, need to devise strategies and create a corporate culture which can take advantage of the growing opportunities presented by the international market.