Presentation by Dr. W.A. Wijewardene highlights importance of trade to Sri Lanka

The members of The Management Club and distinguished guests were treated to an insightful and thought provoking presentation on Wednesday (20), which highlighted the importance of trade for Sri Lanka to address the external and internal crises plaguing the economy. The presentation delivered on the topic ‘ETCA & Beyond: 360° Trade Relations’, by no less a personality than Dr. W.A. Wijewardena, a noted academic and prolific writer and retired Deputy Governor of the Central Bank of Sri Lanka, focussed attention on our nation’s millennia long history as a trading nation and the need to embrace trade relationships across the globe in the present. 

True to style, the veteran economist engaged the audience with anecdotes and jests as he broke down complex theories and policies so as to make the subject comprehensible. While one may have expected a technical lecture on current global geo-political realities and economic theory, Dr. Wijewardena adopted a pragmatist’s approach in highlighting Sri Lanka’s prosperity during eras of heightened trade. 

His citation of trade policy adopted by Sri Lanka’s Parakramabahu I or Parakramabahu the Great, provided not only a refreshing take on Sri Lanka’s economy but also on the country’s history. The audience was also introduced to the 4th century Indian philosopher Chanakya and his approach to trade and the influence his teachings may have had on the rulers of ancient Lanka who positioned their kingdoms as important trading hubs. Pinpointing the nation’s economic ailments from poor budget management to external sector fragility, Dr. Wijewardena also outlined the steps that Sri Lanka must take in terms of expanding complexity and destinations in trade in order to address economic woes. Expressing his belief that while the services sector’s contribution to growth has been on the rise, it has reached a level of saturation, Wijewardena noted that in the absence of a ‘quantum leap’, the sector would cease to grow considerably in the future. 

The candid presentation also drew attention to the recent downgrading of Sri Lanka’s outlook by the prominent ratings agencies, likening it to a physician’s prognosis of a patient, pointing out the stark reality of a negative outlook. 

‘Too late, too short’ was the simple phrase Dr. Wijewardena used to describe the IMF’s External Fund Facility (EFF) for Sri Lanka as a solution to external sector fragility. Highlighting the fact that Sri Lanka needs to raise $ 5.5 billion in order to meet debt repayments this year Dr. Wijewardena noted that in this backdrop, the EFF was ‘peanuts’. Speaking on corrective measures to be taken to address these ills, Dr. Wijewardena presented a six pronged program of which supporting trade and investment was a pillar. 

Furthermore, the speaker noted the importance of ‘entrepot trading’ in Sri Lanka, following the example of Singapore and oil, i.e. – you don’t go to the Middle East to purchase oil, you go to Singapore. Noting that the objective of trade partnerships, whether they are labelled CEPA or ETCA, is to promote trade and not necessarily to create trade surpluses, Dr. Wijewardena also drew attention to changes that need to be made in Sri Lanka’s manufacturing sector in order to fully benefit from trade agreements. These changes included the need for complexity in our exports given the lack of appreciable resources, the need to expand trade destinations and maintain a policy of opening trade opportunities with all nations, notwithstanding geo-political factors. 

The conclusion of Dr. Wijewardena’s presentation brought on a lively and vigorous Q&A session in which topics including trade economics and democracy, the concept of RDM (Research, Development and Marketing), the role of women in the Sri Lankan economy and the role of bureaucrats in negotiating trade agreements were discussed at length. Following on the heels of a series of successful monthly presentations organised for TMC members, this presentation was another feather in the cap on TMC’s mission to build better professional managers.