Surge in exports
Despite the Domesday scenarios painted by some
pessimistic economic soothsayers, Sri Lanka’s economy has done
well under extraordinarily trying circumstances. The country is
saddled with a conflict for which military action has become
essential and inevitable. This naturally means a huge defence
expenditure.
Add the global economic downturn and the oil crisis to this
situation and one does not need to possess an Economics Phd to
comprehend the gravity of it all. Third World countries
including Sri Lanka have been the hardest hit.
In spite of all these obstacles, the Sri lankan economy has
posted an impressive growth rate and is on course to achieve the
set targets or even exceed them. One of the most positive
aspects of the economic performance in the first five months of
the year is the surge in exports, especially of industrial
goods.
Exports have recorded a growth of 12.6 per cent in the first
five months, while in may alone, exports accounted for US$ 746
million of our foreign exchange earnings. This is an impressive
achievement by any yardstick.
The growth in industrial exports is especially impressive, as
it denotes Lanka’s rise as an industrial goods manufacturing
country. The good news is that agricultural products’ are also
contributing heavily to the share of growth in exports. Tea is
still the mainstay of the agriculture sector, but other crops
are catching up.
It is also heartening to note that rubber, diamonds, textiles
and petroleum products are also contributing significantly to
the rise in exports. The prominence of non-traditional exports
is a welcome sign.
The exporters must not rest on their laurels. One of our
biggest challenges is finding new markets for both traditional
and non-traditional exports. The newly emerging economies of
Eastern Europe, Central and South East Asia are potential
markets for many of our products.
The multitude of Government agencies working in the sphere of
export development must have a coordinated plan to develop
exports. More exporters, especially medium and small-scale
exporters must be given the opportunity of participating in
international trade shows to provide them with more exposure.
With a just a few days to go for the SAARc Summit, one has to
acknowledge that SAARC can do more to develop intra-regional
trade. Trade within SAARC is still at a minimal level despite
the existence of free trade agreements among many Member
countries, but a SAARC-wide initiative must be taken to realise
the full trade potential of the eight nations.
Roads to prosperity
Roads are a vital factor for development. No country
can hope to develop without improving its road network.
Developing a road opens many doors - it links villages with
towns and towns with cities, enabling the faster movement of
people and goods. It can literally be a matter of life and death
for rural folk in case of a medical emergency as vehicular
access to the nearest hospital will only be possible if there is
a good road to town.
But Third World countries cannot always afford to spend
heavily on infrastructure projects. This is where they need the
help of multilateral agencies and individual countries.
In this context, Sri Lanka’s highways sector received a boost
last week with the granting of US$ 98 million by the World Bank
for road development especially in rural areas. This will be in
addition to US$ 100 million provided in 2005.
We are pleased to note that many City roads are being
resurfaced by the CMC in view of the SAARC Summit. The same
attention should be paid to rural roads by the Road Development
Authority and local bodies in the respective areas.
Some of these roads are barely motorable and even the
pedestrians have a hard time traversing the giant potholes.
Paved roads will give these villages a new lease of life and
link more villages with each other.
Bridges too are an important component of road development.
Bridges link communities which would otherwise remain cut off.
President Mahinda Rajapaksa recently opened the Arugam Bay
bridge which has become a new ray of hope for the East.
Likewise, the building of more bridges in other areas of the
country would improve access to cities and bring communities
together. The national expressways currently being built will
also help to shrink travel times further and improve the
economy. |