Monday, 24 June 2013 00:04
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Shipping industry needs to show greater flexibility and seek greater support from authorities to overcome economic turmoil
Private sector should play a bigger role as ambassadors of the country as an investment destination
Interest shown by foreign investors to invest approximately $ 2 b through the Mahinda Rajapaksa Port: SLPA ChairmanBy David Ebert
The Sri Lanka Shippers Council’s 43rd Annual General Meeting was held on 14 June at the Victorian Ball Room in the Kingsbury, Colombo.
The AGM saw Dinesh De Silva being re-elected Chairman for the year 2013/2014, with Sean Van Dort and Nalin De Silva being appointed 1st Vice Chairman and 2nd Vice Chairman respectively.
The Chief Guest at the occasion was Sri Lanka Ports Authority Chairman Dr. Priyath B. Wickrama, who delivered the keynote address themed ‘Sri Lanka’s strengths and avenues for unprecedented opportunities for accelerating growth in diverse sectors due to inter-Asia trade’.Delivering his inaugural address, newly-elected Chairman Dinesh De Silva stated that the industry needs to display a level of flexibility while seeking greater support from authorities in order to keep abreast with challenges brought on by ongoing global economic turmoil.
“We all know that our industry is continuously changing due to changes in global commerce. During this, the world’s worst economic crisis, several factors began to inhibit our day to day lives. Economic turmoil results in graphic increases in fuel prices as well as products and services and higher unemployment rates in several countries, major stock market losses and other market changes.
“I think these are happening at an alarming rate and this means that we have new challenges in the industry. We as professionals should be able to manage all of these diligently and profitably. Therefore I strongly believe that we should have a feel for that and be very flexible in dealing with the situations. The important question then here is whether the export and import sector of the country are getting the right support from the authorities? I think the answer is that we are still working towards that. The question then becomes, when and what is the deadline?”De Silva said that the Central Bank’s GDP growth projections of 7.5% for 2013, 8% for 2014 and 8.3% for 2015 and the Government’s target of a $4000 per capita income and the $100 billion economy target means that the industry has to grow fast, control costs and take sustainable approaches to their final goals.
He added that increasing export growth in the country is a must for the industry and that this would require the right enablers from the authorities in terms of infrastructure improvements, full automation and trade facilitation.
Keynote speaker Sri Lanka Ports Authority Chairman Dr. Priyath B. Wickrama in his address stated that enhancing infrastructure investments in emerging economies would have a positive spin-off for rebalancing global demand which would result in investments with tangible growth. He added that Asia would be in a better position to face global economic challenges only if the necessary structural reforms are put in place.
“Asia is in a stronger position to tackle headwinds from the unsettled global economy provided that the region continues with structural reforms and embraces greater integration to meet its potential. We strongly believe that Asia cold continue with the developing pace if steps are taken with regard to increasing innovation, improving governance, promoting services and social safety nets.”
Wickrama also pointed out that Asian share of global trade is fast catching up with developed countries and was evident by the fact that almost 50% of trade agreements notified to the WTO at the beginning of 2013 were Asian. He added that this phenomenon was driven by Asian economies attempting to tap each other’s markets in addition to non-Asian economies attempting to expand in Asia’s large and growing consumer markets.
Wickrama said: “Economic growth in the South Asian region has picked up in 2013 and the Sri Lankan economy is poised to grow by over 6%. The regional GDP growth has been projected to rise to 5.7% in 2013 and to 6.6% in 2015 supported by an improvement in the global demand for South Asian exports. Whether the US, Europe or Asia becomes the manufacturing hub, Sri Lanka has to play an important role. We are the centre of trade between Asia and the US and Europe. It is up to all Sri Lankans to embrace this ideal opportunity to develop all sectors of the economy.”
Wickrama also urged the private sector to play a bigger role in promoting the country as an attractive investment destination to fund the much needed infrastructure developments needed to maximise on the potential the country has in global trade.
“From a marketing point of view, each one of us should be able to contribute something to our motherland. We could invite out friends from overseas to visit Sri Lanka. We can encourage them to accompany some of their colleagues.
Be a true ambassador, be confident and say Sri Lanka is one of the most peaceful places in the world today and is one of the most beautiful places on earth. But don’t just say it and stop at that. Explain the opportunities available to them to embark on businesses and the enormous opportunities to invest in various sectors of the economy with concessions afforded by the Government. We have already experienced interest shown by foreign investors to invest approximately $ 2 billion through the Mahinda Rajapaksa Port.”
Pix by Daminda Harsha Perera
