Benchmark Bangladesh export strategy

Sri Lankan exporters must benchmark the Bangladeshi exports growth model, top professional Rohantha Athukorala stated at the Sri Lanka Pharmaceutical Industries Chamber conference recently at the Taj Samudra Hotel.

The former Chairman of the Sri Lanka Export Development Board (EDB), Athukorala, who currently serves the EDB as Board Director, explained that way back in the 1990s, exports out of Bangladesh were trailing at just US$ 1.7 billion when Sri Lanka’s exports registered a commanding US$ 2 billion.

Today, Bangladesh is registering a staggering export value of US$ 24 billion whilst Sri Lanka has fallen short with a US$ 9.8 billion performance in 2012, which has to be corrected with a Private-Public Partnership in the pharmaceutical industry.

“The logic for this recommendation is the Bangladeshi export strategy. Pharmaceuticals was a focus area together with the apparel industry, that is clocking in US$ 19 billion as against the Sri Lanka’s performance of US$ 4.5 billion,” Athukorala said.

Given that Sri Lanka has already earned a reputation as an ethical sourcing destination for apparel backed by a strong proposition of ozone friendly status by the tea industry, we have invest and unleash the power of Sri Lanka’s export potential, he asserted.

Athukorala commented: “Very soon we will see countries like Bangladesh capture the markets being operated by Sri Lanka. Let’s not forget that the world is moving on and if we do not continue to modernise and introduce the necessary policy reforms to maintain export competitiveness, very soon countries like Bangladesh will become serious competitors.”

Recent reports from chambers state that January 2013 exports declined by 19% as against last year, which is a worrying trend given that overall numbers declined by around 7% in 2012 too. With the drastic cut in public expenditure in the US over the weekend, there is a strong chance that the US economy will head the opposite way, given its fragility.

Incidentally, the US has been the key market for Sri Lanka’s exports in the last decade, which can have ramifications in the backdrop of the recent developments.

Athukorala commended the private sector for holding ground during the last 30 years of war, saying this meant the challenges in 2013 could be met. He emphasised that strong industry holistic working would be a must, so that as a country we could be competitive instead of only having just one or two strong companies.