Treasury Secretary optimistic:
GSP+ can be revived
To discuss unresolved issues with EU:
Sanjeevi Jayasuriya
The effects of the suspension of the GSP+ facility by the European
Union will not be felt in the next six months. The European Union has
indicated its willingness to discuss unresolved issues to which the
Government has responded positively, Finance Ministry Secretary Dr. P.B.
Jayasundera told Daily News Business.
Finance Ministry Secretary Dr. P.B. Jayasundera. Pictures by
Sudath Nishantha |
There is still a possibility of reviving the GSP+ concession for the
country. With the recovery in the global economy and improved economic
outlook in Sri Lanka in the post-war environment the adjustment to the
GSP+ withdrawal will not be difficult, he said.
The Finance Ministry |
The apparel industry in Sri Lanka has gone through a similar
challenge in the past when the US withdrew the Multi-Fiber Agreement in
2004/5 where the country faced tough competition from China, Vietnam,
Indonesia and Bangladesh.
“However, the availability of the GSP+ facility will provide a
comfort margin for post-war recovery in Sri Lanka and also strengthen
longstanding bi-lateral relations between Sri Lankan and European Union
countries,” Dr. Jayasundera said. Sri Lankan economy is likely to record
6 to 7 percent economic growth in 2010.
The growth has been around 6 percent from, 2005 until middle of 2008
when the global economy was confronted with a major economic crisis.
With the collapse of major export markets in the US and Europe Sri
Lanka’s exports declined by 12 percent. There was also reduction in
imports.
However, the economy managed to maintain positive growth throughout
2009 due to resilience in the domestic economy, Dr. Jayasundera said.
Economic growth in many countries including India and China fell
sharply. Sri Lanka’s economy towards 2009 recorded 6 percent with a
favourable agricultural outlook in paddy, tea, rubber, cinnamon, fish,
livestock, fruits and vegetables.
It is anticipated that the agricultural sector would generate over 6
percent growth in 2010.
The recovery in global outlook and financial stability has also paved
the way for over 6 percent growth in manufacturing and services sectors.
Improved performance in tourist arrivals, new demand for hotels and
similar facilities would augur well for the economy. “The construction
industry will also get a boost due to the Government’s public investment
in roads and water supply for post-war reconstruction work in the North
and the East,” he said. |