Rishad moves background agency DoC to export battle frontlines

Sri Lanka, in a major move, has positioned its Department of Commerce (DoC) to the frontlines of its exports battle, vesting an otherwise quiet, background agency with a crucial new role as the country’s exports continued to turn challenging.

Deputy Director of Commerce Nimal Karunathilake (seated front row, far left) outlines Sri Lanka’s current market diversification scenario as Director General of Commerce P.D. Fernando (seated front row, second from left), Ministry of Industry and Commerce Secretary Anura Siriwardene (third from left) and Minister of Industry and Commerce Rishad Bathiudeen (far right) listen at the CCMD session on 1 November at the Ministry of Industry and Commerce

“As you may already know Sri Lanka’s main export markets are the EU and the US. But there is a recession in these important markets and the latest signs are that this slump could last for another two to three years. Identification of new markets for our exports and expanding current segments should therefore be done on an urgent basis. I am pleased to say the launch of the Consultative Committee on Market Diversification can ensure that these twin needs are addressed effectively,” announced Minister of Industry and Commerce Rishad Bathiudeen yesterday.

Minister Bathiudeen was addressing the first Ministerial level multi-stakeholder meeting to form the Consultative Committee on Market Diversification (CCMD), Sri Lanka’s first-ever national level initiative to address the growing turmoil its global export destinations.

The cross-functional initiative is a collaborative effort of several key Ministries, the Treasury, and the private sector, as well as various leading Chamberscof the country.  Reps from such institutions as the Ceylon National Chamber of Industries (CNCI), the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), National Chamber of Commerce, National Chamber of Exporters, Economic Development Ministry, the Ministry of Industry and Commerce and its Export Development Board and the Department of Commerce, Agricultural Ministry, Finance Ministry, Plantation Industries Ministry, the Treasury, the Tea Board, and the Joint Apparel Association Forum (JAAF) jointly threw their weight behind the simply named but crucial task force on market diversification.

The CCMD will be chaired by the Secretary of Ministry of Industry and Commerce while the Department of Commerce of the Ministry will be responsible for the overall coordination of the Committee. The CCMD is tasked with better and bigger exports penetration to such emerging economies as China, Brazil, South Africa and Russia (among others) on an urgent basis.

Equally important is that CCMD can also look into enhancing the coverage of Sri Lanka’s present trade agreements (Indo-Sri Lanka Free Trade Agreement, Pakistan-Sri Lanka Free Trade Agreement, Asia-Pacific Trade Agreement, South Asian Free Trade Area and Global System of Trade Preferences) in time to come.   

“As our key markets are challenged due to the global slowdown, the EDB under the Ministry is now specially working to sustain the existing segments. However, we need to diversify to new markets for us to survive,” said Secretary to the Ministry of Industry and Commerce Anura Siriwardene. “The CCMD will directly focus on this urgent need while also looking at expanding the coverage and strengthening of our existing international trade agreements.”

Minister Bathiudeen also praised the private sector and the chambers present for their “efforts in contributing to Sri Lanka’s exports drive”.

“It is very important that we, the Government, and you, the private sector, join together and explore the possibilities for us to survive. I am given to understand that our apparel leader JAAF, despite difficult global conditions, has successfully entered new markets such as S. Korea, UAE and Saudi Arabia with brand Sri Lanka, for which I congratulate JAAF. I am also pleased to see that EDB has identified seven new export thrust sectors – apparel, tea, rubber, coconuts, jewellery, spices, ICT, and food and beverages,” Bathiudeen said.