“Facilitating and simplification of intl. trade procedure crucial to economy”

Wednesday, 23 July 2014 00:00 - - {{hitsCtrl.values.hits}}

Following is the keynote address by Ministry of Industry and Commerce Secretary Anura Siriwardena at the 79th AGM of the Import Section, Ceylon Chamber of Commerce Good evening! I am pleased to be here this evening, to address you at the 79th Annual General Meeting of the Import Section of the Ceylon Chamber of Commerce. First of all, I would like to thank the Chairman and the Executive Committee for inviting me to make the keynote address at this important occasion. As you all know, countries are vastly diverse when it comes to the level of their resources, both natural and human. This is what determines the production capacity, as well as the range and quality of the goods and services produced in each country which in turn, gives rise to the need to trade between countries. Thus, imports are vital to a country in sourcing goods and services that it doesn’t produce, while exports are an important source of income. Hence, facilitating and simplification of the international trade procedure is crucial to the economy of a country. Economic transitions Today, the Import Section of the Ceylon Chamber of Commerce celebrates 79 years since its establishment in 1935 and throughout this period, it has done a commendable service to the nation by facilitating the importers in many aspects. During its history of 79 years, the Import Section has witnessed many economic transitions; first, an import dependant policy under the British rule and immediately thereafter, during which, exports were limited to a few number of commodities. Then, an import substitution period in the 1960s to 1970s, followed by a liberalised economic policy, introduced in 1977. However, with the emergence of the Mahinda Chinthana national policy framework, the open economy of Sri Lanka became more ‘humane’ and people-oriented. Throughout these different phases of our economy, the Import Section of the CCC has continued to render its services to the trading community of Sri Lanka, especially to the importers, with appropriate strategies and approaches to suit the prevailing economic conditions. Valuable body for importers From an industries’ point of view, a simplified and a low cost import system is important to source the raw materials, intermediate inputs and machinery and equipment required for manufacturing. Thus, the services of the Import Section, which includes the resolution of operational issues faced by importers in relation to port and customs clearance, as well as complying with health and safety regulations, in consultation with relevant Government officials is very important. In addition, the Import Section of the CCC contributes to capacity building of importers by organising seminars and forums conducted by versatile and experienced personnel in related fields. Thus, the Imports Section has become a valuable body for the importers of Sri Lanka, which is manifested by its membership of over 120 successful businesses, belonging to many different industries such as; pharmaceuticals, electronic and electrical, automotive, confectionary, dairy, chemical and glass, as well as providers of financial, IT, marketing and construction services, to name a few. Declining import expenditure During the recent past, the expenditure on imports of Sri Lanka shows a declining trend. The intermediate goods are the category that is largely being imported to Sri Lanka, with a contribution of 59%, while investment goods and consumer goods follow with a share of 23% and 18% respectively. This reflects a positive shift in the manufacturing industry, contributing to a more stable development within the country. The country from which Sri Lanka sources the highest amount of imports is India, which contributes to 17.6% of our imports, while China is close behind, with a share of 16.4%. Singapore, UAE, Oman, Japan and Malaysia are the next largest sources of imports of Sri Lanka at present. Promoting trade and investment The Government has carried out many activities to facilitate and promote trade and investment in Sri Lanka, especially with the view to record a trade surplus by 2020 by promoting production over consumption, which at present is the other way round, mirrored by the country’s import bill, which at present, is double the amount of its export earnings. You could daily witness the massive infrastructure development taking place across the country, including the construction of international air and sea ports, highways and an improved road network, which pave the way towards making Sri Lanka, a commercial hub, with efficient connectivity with the rest of the world, as well as within the island. These enable you all to improve linkages within supply chains and in turn, reduce your costs. Similarly, the implementation of the ASYCUDA World is a successful endeavour of the Department of Customs, which is an efficient and a low cost procedure for both importers and exporters. Barriers relaxed The trade and tariff policies of the Government have simplified and have relaxed the barriers and procedures of import of goods required for local industries and for other development activities. For instance, the four-band tariff structure provides duty free or low duty rates for raw materials and intermediate inputs, while some items have been included in the lists of concessions and exemption, which enables the import of these items at zero or low duty rates for special purposes. In addition, the free or preferential trade agreements that Sri Lanka has entered into with India, Pakistan, SAARC and Asia Pacific countries allows the import of several items at zero or concessionary duty rates. However, it must be noted that even at present, the facilities offered by these agreements are not fully utilised, mainly due to the lack of awareness among importers and exporters. Hence, I invite you all to spread the word amongst your membership as well as the other importers and request them to utilise these opportunities. Opening up opportunities At present, we are in the final stages of our preparations to sign the China-Sri Lanka Free Trade Agreement, which we are optimistic, would open up many opportunities for our exporters to exploit the largest market in the world and our importers to bring down goods, especially low-priced intermediate goods and machinery, duty free. In addition, we are on our way to build closer relations with the BRICs, CIS and African countries, with the view to improve Sri Lanka’s trade with these countries. Hence, I kindly request you to keep a constant dialogue with us and inform us of your expectations and issues in expanding trade with existing of potential markets, enabling us to take necessary policy measures in that regard. With that, I would like to commend all the Executive Committees and members who belonged to the Import Section of the Ceylon Chamber of Commerce during the past 79 years, for the services rendered to the importers of this country. At the same time, I wish the newly-appointed Chairman and the Vice Chairman as well as the Executive Committee of the import Section of the CCC, all the very best for your future endeavours. Thank you