Sri Lankan exports:

Focus on emerging markets - Dr. Mathai

Harshini PERERA

Sri Lanka needs to concentrate more on exports to emerging markets such as India and China in the region in the future. Current Sri Lankan exports have been directed mainly to the USA and European markets which are no longer fast growing economies.

Sri Lankan exports to the USA and European markets are high as 59 percent during past years, IMF Sri Lanka and Maldives Resident Representative Dr. Koshy Mathai said.

Addressing the memorial oration and Memorial Trust Awards Ceremony of Late K. Sivagananathan, he said the private sector should be involved in the massive infrastructure projects carried out by the Government.

He said it is timely for Sri Lanka to change from European markets to emerging Asian countries for exports. Sri Lanka has only exploited less market capacities with India and China.

The Sri Lankan exports to India stand at four percent while one percent to China. This has to be changed,

Sri Lanka should encourage corporate bonds to be a stable economy. The appetite for investing in long term corporate bonds should be encouraged while considering the tax change involved with it, Dr Mathai said.

He said the availability for finance for SMEs from banking sector is less when compared to the other countries.

This will be a major issue the Government as well as the banking sector should address to sustain the country’s economic growth. It is not Bluechip companies which need access to funds but Small and Medium Enterprises (SMEs).

“There should be an encouragement to sign the Comprehensive Economic Partnership Agreement (CEPA). Sri Lanka has hidden advantages such as supplying accounting services and ship repairing services to India,” he said.