Trade distortions will be wiped out to ensure level playing field: Ravi K

Minister of Finance Ravi Karunanayake last week assured that trade distortions where one party was being given concessions and the other party was being provided with protectionism would be taken out of business when the country was fully transformed into a manufacturing economy, a process which was presently underway.

The Finance Minister was speaking at the ninth session of the Ease of Doing Business forum organised by his ministry. Ease of Doing is the forum where grievances of businessmen are addressed with on-the-spot solutions provided by the State institution and officials present there.

The ninth session of the Ease of Doing Business Forum had accommodated a large number of trade-related issues that mostly needed solutions which could only be created through the intervention of the Finance Ministry. 

Development Strategies and International Trade Minister Malik Samarawickrema, Central Bank Governor Dr. Indrajith Coomaraswamy, Secretary to the General Treasury Dr. R.H.S. Samarathunge and officials from State banks, Sri Lanka Customs and other regulatory bodies as well as representatives of line agencies were present to provide on-the-spot solutions to the problems raised by the business community.

Speaking at the forum, Karunanayake said that the Government expected that more foreign investment would promote more export-oriented business inclusive of entrepot trade. Sri Lanka wants foreign debt to be replaced with investment which is the policy of the Government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe

“Entrepot trade is one area that will be promoted with all necessary facilities and all irritants that are there on its way will be removed,” said the Minister while replying a query raised by an entrepot businessman who said that the facilities offered by the banks, SLPA and the Sri Lanka Customs on entrepot trade were too costly for them to engage in that trade.

The Central Bank Governor, replying a question on facilitating trade with Iran, said that some sanctions on certain items had been revoked and tea was one such item that could now be exported to Iran. When the exporter concerned pointed out the difficulty in the money transaction, the Governor said that though tea export does not come under the US sanctions, the ban on financial transactions had not yet been lifted.

Dr. Coomaraswamy said that his bank’s officials in Washington had already approached US officials in this regard. He also stated that according to the Central Bank of Iran there was a possibility for financial transactions through the Central Bank of Italy. The Governor asserted that once the ongoing discussions with US officials and the officials of the Italian bank were completed it could be possible to pave the way for transactions under the normal SWIFT arrangements.

Sri Lanka’s endeavours to establish barter trade with Iran like what was practiced by India did not materialise as the country does not have a large volume of exports to Iran.