Exporters can view new year with renewed hope

Sanjeevi Jayasooriya

*Global recession easing off

*World trade improving

The year 2010 should be viewed as a year to realize the real potential of our country. After almost 30 years of war, we finally have peace, and Sri Lanka with focused planning and efficient implementation can expect rapid economic and social development.

The business sector needs to gear itself to make use of the emerging post-war opportunities, particularly in the North and East. With peace, what we look forward to, is a stable political climate and good governance, keeping the country’s interests uppermost.

The Exporters need to view 2010 optimistically as there are positive signs that the global recession is easing off and world trade is improving.

The IMF has predicted 3.5 percent increase in global output in 2010, Exporters Association Sri Lanka Chairperson, Nirmali Samaratunga told Daily News Business. Whilst opportunities are opening up with the greatly improved environment, it will also be a challenging year for exporters, as, due to the past global recession, the country lost ground in overseas markets.

It is important to have strategies to focus and selectively develop products and markets now. She added that the export sector recorded a downturn in 2009.

The first ten months of 2009 compared to previous year recorded a 16 percent decrease from US$ 6.8 billion to US $ 5.7 billion.

“The country needs to reverse the trend and the exporters need to be geared to exploit the opportunities emerging from recovery of the global economy, with greater focus on trade with the region,” Samaratunga said.

The export sector should be ready to face the impact of a possible suspension of GSP+ facility as EU is a major market.

It is of course necessary that the country be independent of these concessions, but at this point of time when we are attempting to regain and re-enter markets this facility is very valuable.

It is important to also have a workable exchange rate- presently we are seeing an appreciation of the rupee vis-a-vis the US Dollar and the Euro, which will erode margins.

At this juncture the sector needs support to regain its position and achieve strong growth amidst the challenges, internal and external, she said.

The Export Development Reward Scheme is an encouragement, but there should also be a scheme to help Companies which are in difficulties to enable these companies to get back on their feet and make use of the emerging opportunities.

The proposed National Export Strategy presently being formulated should be finalized early , and would be an additional support for the sector, providing a focused and strategic approach.

It is necessary to have innovative market strategies, greater branding and value addition and more focus on niche markets. This would facilitate significant growth and revenue generation from exports which is the major foreign exchange earner for the country, she said.