• Stresses exports as the only sector with steady foreign inflows to keep economy afloat 
• Opines SL cannot grow as a country without exports
• Calls on all State institutions to support exporters to boost forex earnings
• Hails resilience of exporters for $ 1 b plus monthly performance in past 10 consecutive months and reassures continuous support to private sector 
• Seeks to introduce mechanism to resolve power and energy crisis without further delay 
• Asserts delay to implement solutions could cause $ 50 m daily export revenue loss
• Notices rapid brain drain in service export sectors

By Charumini de Silva

Export Development Board (EDB) Chairman Suresh de Mel insists boosting exports and celebrating exporters must be made a national priority, noting that it is ‘the only’ sector generating a steady foreign exchange inflow to keep the economy afloat.

“Sri Lanka needs to make exports a national priority. The entire export workforce is contributing immensely to keep the economy steaming ahead by attracting scarce foreign exchange amidst extreme operating conditions. We cannot grow as a country without exports. Thus, boosting exports and facilitating exporters should be made everyone’s priority right now, not just EDB’s — but all State agencies must support,” he told the Daily FT.

This clarion call comes despite exports having achieved its 10th consecutive month of over $ 1 billion per month performance between June 2021 and March 2022 proving the private sector’s resilience. In April however the performance fell short to $ 915 million. 

The EDB Chief was optimistic about the resilience of the exporter community and reassured its continuous support to the private sector or 50% of Sri Lanka’s entire working population.

“Despite the disruptions we may stumble upon with the multiple internal crises, our exporters have proved to the world that the sector is up and running and credible. Therefore, our interest to trade with the world remains unchanged,” de Mel pointed out.

As key Government institutions that encourage exports, the EDB and the Board of Investment (BOI) would extend their fullest support to continue export operations without disruptions.

He assured that they have taken steps to ensure that the exporters are given priority to obtain fuel and be provided with uninterrupted electricity, which otherwise could cause a thumping economic impact of $ 50 million export revenue loss per day.

“The short supply of fuel and electricity still remains a major concern for the export community. We are in continuous discussion with the Government to introduce a mechanism to resolve the power and energy crisis without any further delay.”

“If no action is taken right now, then the remaining buyers will also opt for alternative suppliers or markets — and we cannot afford it. So, we sincerely hope that the authorities will extend support to stop the total economic standstill,” de Mel said.

In terms of the service exports, he cautioned there could be a large brain drain if solutions are not provided immediately.

“IT/BPM as well as financial professionals have high demand for overseas employment and we see that happening at a faster pace than predicted,” he added. 

Sri Lanka’s single largest export market is the US, which accounted for 27% of total merchandise exports last year, while Europe accounts for 30%.

He pointed out that products originating from Sri Lanka gained ‘supply chain credibility’ among global customers despite having to deal with multiple internal and external challenges since the pandemic. 

The EDB Chief requested exporters to take pride in playing a major role in the development of the country.

“Many of our customers are concerned about the economic, social and political situation in the country. However, the deep relationships our exporters have maintained for decades are helping them to continue with the business amidst chaos situations. The resilience of our exporters should be celebrated,” de Mel said.

Exports in the first four months of 2022 amounted to $ 4.16 billion, up 9% from a year earlier. 

In 2021, Sri Lanka’s exports recorded $ 15.12 billion, up by 23% from 2020 sustaining its resilience, despite an unprecedented economic crisis. The year 2021 performance comes second only to $ 15.91 billion recorded in 2018.

April ends 10-month $ 1 b export streak