Exporters must offer best terms to attract markets - CB Governor

Ramani Kangaraarachchi

“Sri Lanka should strive to align with the international value chain of production, to attract foreign private capital flows and promote intra-regional trade,” Governor Central Bank of Sri Lanka Ajith Nivard Cabraal said.

Speaking at the 10th anniversary celebrations of Trade Finance Association of Bankers held on Saturday, the Governor said Sri Lanka has undergone remarkable improvement in its economic landscape during the last three decades , despite many adverse domestic and external shocks.

He pointed out that with continued improvement in living standards across the world, most notably in developing and emerging market economies, world trade is bound to grow significantly in the years ahead.

‘Trade will increase on account of increased demand for consumption goods including consumer durables as well as in relation to investment, particularly construction related activity.

Outsourcing of production to lower cost regions of the world and the formation of regional and trading blocks are other factors that will lead to increased world trade,’ he said.

He said expansion of trade globally will help foster economic growth, increase employment opportunities, improve consumer choice and welfare and thereby increase the standard of living of people.

The global economy is projected to remain buoyant in spite of the challenges posed by the recent adverse developments in relation to credit markets in the USA and world trade, which has been growing at a very high pace of 7.5 - 11 per cent in the last three years.

It is projected to grow by more than 6.5 per cent in both 2007 and 2008.’

He insisted that it is of utmost importance that exporters offer the best terms in financing their business, which will help them win over markets.