EDB says unfair to compare exports growth against GDP

Thursday, 24 March 2011 01:25 - - {{hitsCtrl.values.hits}}

The Export Development Board (EDB) yesterday announced higher earnings of 67% in January year on year and insisted that there was no relevance in comparing export figures against GDP.

EDB Chairman Janaka Ratnayake responding to claims made by UNP MP Dr. Harsha de Silva told Daily FT that comparing export figures against the growth of GDP was confusing facts. Dr. de Silva was making these comments at the Parliament Consultative Committee meeting of finance before President Mahinda Rajapaksa on Monday.

Insisting that the statistics are much more positive, the EDB Chairman emphasised the fact that exports have declined against GDP because the latter was growing at a larger rate than the exports.

“This is not a fact that is against exports. When you consider exports alone, the statistics show that they have performed well. GDP grows at a far faster level than exports. We must understand that Sri Lanka is a small country and as such can make limited impact,” he contended, adding that GDP has grown by three times in the last decade while exports have doubled. In 2001 exports were US$ 4,817 billion while in 2010 they grew to US$ 8,307 million.

Niche markets are what Sri Lanka aims for he said, pointing out that the bulk of export companies pale compared to global multinationals. The plan of the EDB that focuses on seven key industries and targets making them pass the US$ 1 billion mark along with a number of other services is to assist exports to grow. “But we must keep our targets realistic,” he stressed.

Moreover, if services are added to export calculation, then the numbers are further enhanced, Ratnayake claimed, putting forward statistics that show exports as a percentage of GDP reached 23.7% in 2009. This is however a decline of a peak that was hit in 2006 (30.1%) and 2005 (32.2%).

Ratnayake expressed the view that exports have remained stable since 2001. He pointed out that in 2001 Sri Lanka recorded export numbers of 30.5%, 2002 (28.4%), 2003 (27.2%), 2004 (27.8%), 2005 (26%), 2006 (24.3%), 2007 (23.6%), 2008 (19.9%) and 2009 (16.9%).

The Chairman referred to the latter as a consequence of the global financial crisis but insisted that the numbers would only expand this year. For 2011 EDB has a target of 16% growth and the Chairman is confident that this amount will be surpassed.

(UJ)

January exports up by 67%

EXPORTS for January showed a 67% increase on 2010 helped by strong growth in apparel, agriculture, fisheries and industries. The EDB statics recorded that the garments had grown from US$ 172 million to US$ 376 million, agriculture from US$ 142 million-US$ 147 million, fisheries US$ 12 million to US$ 18 million and industrial US$ 307 million to US$ 567 million.