Rishad says exports a national priority now

As the global recovery appears to weaken, Sri Lanka is mulling to make its lifeline a national priority.

“The need of the hour is to understand that our exports have become a national priority and to take decisions based on requirements of the markets and act on them, rather than taking decisions of a narrow focus. Since this is a national priority, the situation now demands us to rise above our personal and political concerns. For us to realise our long-term economic growth goals, it is essential that we must not deviate from our export diversification but should continue to collectively proceed as per our far sighted vision,” said Rishad Bathiudeen, Minister of Industry and Commerce on 12 November in Parliament.

Bathiudeen was delivering his Budget speech in Parliament.

“The World Economic Outlook report released by the IMF last month paints a picture of sluggish growth for 2013. Accordingly the global recovery that already started has now weakened. In advanced economies, growth is now too low to make a substantial change in unemployment. And in major emerging market economies, growth that had been strong earlier has decreased.

“Relative to the IMF’s April 2012 forecasts, the latest forecasts for 2013 growth have been revised from two per cent down to 1.5 per cent for advanced economies, and from six per cent down to 5.6 per cent for emerging market and developing economies.

“There is no better time to focus on the base layers of Sri Lanka’s value chains than at present since this is a time when our export destinations have become very challenging due to extended global recession and slow recovery in US and European Union. The recession effects in these markets are also negatively impacting on our other destinations such as BRICS, with extreme global weather conditions becoming another threat – even for global food security and supplies.

“I am pleased to stress that the Government has been successful in domestic production efforts for import substitution. As President Mahinda Rajapaksa announced during the 2013 Budget speech, we no longer import rice other than for the limited use in tourism and for the diplomatic community. More importantly, we are also taking active steps to safeguard our exports.

“I am pleased to inform this august House that I have been personally meeting and consulting many top chamber members in the country with regard to our future exports strategies. As a result of these consultations during the last few months, we have now set up a Consultative Committee on Market Diversification representing the interests of a wider cross section of the economy which already started work with the Ceylon Chamber of Commerce. We have moved our background agency Department of Commerce to the frontlines of export battle with the setting up of this Committee which is Sri Lanka’s first ever national level initiative to address the growing turmoil its global export destinations.” The CCMD held its first information and consultation session with Sri Lankan exporters on 15 November in collaboration with the Ceylon Chamber of Commerce (CCC) at the CCC premises in Colombo, where keen representatives from the private sector appeared to write down almost every point revealed in a DoC presentation on ‘Exporting to Singapore’.

During the session, the DoC also clearly revealed various information outlets on info needed by the local exporters in this regard. Director General of Department of Commerce P.D. Fernando headed the session supported by Harin Malwatte, Secretary General/CEO of the Ceylon Chamber of Commerce.