Encouraging gains from export drive

The news that Sri Lanka's exports have exceeded the US $ 5 billion mark over the past nine months is certain to be warmly welcomed by the State and others who have a stake in this country's progress.

Here is indeed proof that the local engine of growth is continuing to throb vibrantly despite current tensions in the North-East and the LTTE's persistence in confronting the State and its efforts at deflecting Sri Lanka from the path of development.

This is also proof that the State's economic policy is yielding dividends and that it is well thought out and far-sightedly planned. The prime objective of economic policy planning should be to invigorate, accelerate and broad base the local production process and the current export figures more than amply prove that this is indeed so. The domestic production base is solid and expanding and the current export income adequately bears this out.

Besides the local agricultural sector which has an immediate bearing on domestic food production, one could be glad that the industrial products and manufacturing sectors are proving productive.

Such increased domestic production is the best answer to our seeming perennial problems - the rising cost of living, inflation, dropping living standards and poverty.

We urge the State to continue with this economic policy thrust. Besides focusing on expanding the domestic production base of essential goods and services, the State needs to guard against inflationary spending.

When Government finances are siphoned into unproductive enterprises, money circulates more widely but there is no corresponding increase in goods and services. The deleterious consequence from this trend is a steeply rising inflationary spiral which spells escalating living costs and growing poverty and economic need.

We are glad the State has staved off a situation of this kind by invigorating and expanding the vital, productive sectors of the economy. Besides, we would be in a position to contain problems arising from trade deficits.

However, while expanding our export base we also need to ensure that domestic self-sufficiency of essentials and equitable development are also achieved. For, development in the real sense of the word is achieved only when the whole, essential needs of the local populace are met. In our haste to meet export targets, the possibility exists that these priorities may be overlooked. This should not be so.

However, the indications are that budget 2007 has taken cognizance of these aspects of development. The budget's emphasis on agricultural development and the SME sector, for instance, proves that an effort would be made to achieve self-sufficient growth.

Our satisfactory export growth figures are a pointer to the fact that Sri Lankans are not at all lacking in entrepreneurial capability. If the correct policy climate is created and the relevant economic incentives are on offer, Sri Lankans would work doubly hard to keep the growth wheels humming. This is the message from the export development front.

These gains should be further consolidated through an active seeking out of newer and newer markets for our goods. If our export development drive is to be further strengthened we need to seek for niche markets for our prime products. Gems and spices are some such areas. The same goes for our garments sector.

All in all, untiring economic enterprise is the need of the hour.

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