Providing market access to Sri Lanka's exports to China - A promising development

MARKET ACCESS: The Federation of Chambers of Commerce and Industry of Sri Lanka is indeed most appreciative of a tangible development in connection with Mahinda Rajapaksa's recent State visit to the People's Republic of China for the 50th Anniversary Celebration of diplomatic relations between the two countries.

This is in regard to the significance of gaining market access for products from Sri Lanka which form, a part of the official communique issued at the conclusion of HE's visit.

We cannot get away from the reality that Sri Lanka needs to find more and new markets for our products. We are an export/import economy and following the rise in prices for essential imports such as petroleum, we need to earn more foreign exchange.

The one solution to this is expanding exports and also adding value to such exports. On the other hand Sri Lanka's balance of trade with China is heavily weighed in favour of China. But our exports are virtually stagnant. So far Sri Lanka's own efforts at precise identification of Chinese markets for local products have not met with the required degree of success.

We are of the firm belief that Chinese official intervention in this regard could have a positive impact on the current picture of trading between the two countries.

Though such trading exceeded the billion dollar mark in to the balance of trade does not show a sufficient growth in respect of Sri Lanka's exports. As a result there is no significant narrowing of the trade gap between our two countries.

The decision of the Chinese government to provide market access to local products in these circumstances is thoughtful and potentially beneficial.

The Federation sincerely hopes that the Sri Lankan export trade will soon take adequate measures to initiate action in order to capitalize on this development. In retrospect it seems an act of consummate wisdom on the part of His Excellency the President to take strong and representative business delegation to China that included both blue chips, medium and small scale industries and various Chambers of Commerce.

Perhaps these representatives could play a lead role in following up the opporutnties arising from the decision arrived at the provide market access.

We may add that the establishment of suitable business links between the two sides is an important priority in this regard.