NCE highlights constraints which adversely affect cost of cross border trade of exporters

Representations have been made by member exporters of the National Chamber of Exporters (NCE) regarding a constraint which adversely affects the cost, and ‘Ease of Doing Business’, related to their interactions with state organisations.  

This matter which has been discussed by the Council of the Chamber is found to be due to two reasons. Firstly due to the dearth of skills in respect of officials of ministries and other state organisations which provides services to exporters. Secondly it is stated to be due to the frequent transfer of officials who deal with specific aspects of services related to exports. 

Exporters have stated that in certain instances issues related to their enterprises and operations which had been receiving the attention of a particular official over a period of time, with the documentation related to the issue building up in the possession of the official, has been disrupted affecting resolution due to the sudden transfer of the official.  Such situations have necessitated the new replacement official to become familiar with the issue all over again, with an adverse bearing on the time required for resolution, as well as the cost related to the particular issue. 

At the just concluded Presidential Export Awards conducted by the Export Development Board (EDB) both the President and the subject Minister of Strategy Development and International Trade has emphasised the importance of exports for the economic development of Sri Lanka, as well as the high priority accorded by the Government to develop exports. 

In this background certain forums such as the ‘Exporters Forum’ conducted by the EDB, and the ‘Ease of Doing Business’ conducted by the Ministry of Finance addresses specific issues faced by Exporters to facilitate their resolution.  However, while the Exporters Forum is generally conducted fairly regularly, the ‘Ease of Doing Business’ Forum has not been conducted for some time. Exporters have stated that the two constraints outlined above not only adversely affects the ‘Ease of Doing Business’ related to the time that is required to carry out business transactions and their efficiency more importantly the cost of doing business transactions impacts adversely their competitiveness in the international market place.

The ‘Ease of Doing Business’ and the cost of ‘Cross Border Trade’ transactions is accorded high importance by the World Trade Organization and other international organisations related to trade, to enhance the efficiency and competitiveness of exporters.

In this background, in regard to capacity building that is required to enhance the skills of officials related to the different aspects of international trade, there is a need to provide the required training to enhance the knowledge and skills of officials in ministries and state organisations.  

The Chamber states that it stands ready to collaborate with the relevant state organisations to conduct the required training, through its professional training affiliate, the National Institute of Exports (NIOE). 

In order to overcome the second constraint arising out of the frequent transfer of officials who handle important export related subjects in state organisations, the Chamber suggests the appointment of an official to understudy the work of the regular official prior to transfer and replacement of the main official, to facilitate smooth transfer of the specific functions, and enable provision of the required services by exporters without disruption.