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Friday, 2 September 2016 00:01 - - {{hitsCtrl.values.hits}}
By Uditha Jayasinghe
In a strikingly candid evaluation of Sri Lanka’s economic performance, a top minister yesterday acknowledged the Government is falling behind in meeting public expectations and called for a preferential trade deal with the US to achieve stronger growth dividends.
International Trade and Development Strategies Minister Malik Samarawickrama acknowledged that people were “becoming impatient” for better economic returns, at the opening session of the US-Sri Lanka Trade and Investment Framework (TIFA) in Colombo.
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The discussions were led by Assistant US Trade Representative for South Asia Michael J. Delaney and U.S Ambassador to Sri Lanka Atul Keshap.
“I am of the view that we are somewhat falling behind meeting the expectations of the vast majority of our people, in improving their material wellbeing. They are also interested in a sustainable economic dividend. In fact, they are becoming impatient for it,” Samarawickrama said pointing out Sri Lanka’s growing middle class was demanding better employment opportunities with higher salaries.
Stronger trade and investment would be a catalyst to this end as the US remains the country’s single largest export destination accounting for 23% of total goods and services sent out from Sri Lanka. In 2015, total bilateral trade between the two countries stood at $ 3.3 billion. US-Sri Lanka bilateral trade jumped 33% in the five-year period from 2011. The Minister also noted a U.S. company is in discussions to start bunkering at the Hambantota port, though he declined to name the entity.
“Sri Lanka has a negligible presence in the global value chain. We are seeking assistance to improve the competitiveness of domestic enterprises to enable them to become part of global and regional production sharing arrangements,” he said.
Minister Samarawickrama also set out the Government’s expectations for a preferential trade program in line with existing US programs such as the Qualifying Industrial Zones, the Special Programs for Haiti, the Africa Growth and Opportunity Act, as well as the Special Programs for the Caribbean and Andean countries.
“While opening up the economy, our Government is also seeking assistance to build capacity in trade policy enforcement to ensure that Sri Lankan producers and workers have a level playing field to compete in an increasingly outward looking economy.”
The Minister reiterated Government measures to improve the investment climate and strengthen trade facilitation. The mission reports of the World Bank on Investment Climate and Incentives, Competitiveness and Innovation and SMEs are due shortly and based on such findings the Government is committed to improving the overall investment environment in Sri Lanka to attract more foreign direct investment to the country.
The Government has also taken the initiative to establish an Agency for Development and an Agency for International Trade, in order to establish better coordination among Government agencies, Corporations and Departments, in order to expedite decision making. The legislation to enable these is at the final stages of drafting and enactment, the Minister said.
