Right of Reply/Correction: Rehana Thowfeek

Wednesday, 7 May 2025 00:04 - - {{hitsCtrl.values.hits}}

With reference to the article titled ‘Economist warns of deepening economic vulnerabilities for SL amid US tariff policy’ published in the Daily FT of 5 Monday, Economist Rehana Thowfeek has raised concerns over certain inaccuracies and misattributes. She listed the following as a means to set the

record straight.

1. “Both sides have only agreed to continue talks. That’s not a plan, it’s a pause,” she added

What I said was that as far as I was aware there was no agreement and only plans for further discussions.

2. “If orders drop, imports linked to raw materials will fall, but not proportionately. The real danger lies in the imbalance. Fewer exports mean reduced foreign exchange, but our debt obligations stay the same. That’s a recipe for pressure on the balance of payments,” she noted.

What I said was that a reduction in exports will concurrently also lead to a reduction in imports as a lot of imported materials are used in production and manufacture, but we can’t really say it will be 1-1. So, there might be an impact on the balance of payments.

3. “We’ve missed wave after wave of global trends,” she added.

I never said this.

4. Thowfeek floated the idea of rerouting exports through low-tariff countries such as India. But she quickly acknowledged that Trump-era rules of origin could block such tactics.

What I said was we may be able to re-route our exports from a zero-tariff or low-tariff hub, depending on how successful those countries are in getting a good deal with the US. However, this won’t be possible if the Trump administration brings any rules-of-origin restrictions.

5. “This isn’t just about trade—it’s about inclusive growth. If we link MSMEs to global markets, we don’t just grow exports, we reduce poverty,” she stressed.

What I said was we must equip the MSME sector to benefit from a strong export strategy. That way you can distribute benefits to poorer people.

6. “But with remittances declining and tourism uncertain, long-term risks remain high,” Thowfeek warned.

I never said remittances were declining or that tourism was uncertain.

7. Stating that the clock was ticking, she opined that without a clear deal from the US, Sri Lanka faces a dangerous squeeze on exports, foreign exchange, and investor confidence. “This crisis could still be our catalyst—if we choose to act,” she stressed.

I did not used such emotive language nor say these specific words which are within quotes. I talked about the impact on exports, forex and investor confidence and I said the Government must do what is within its own control.

At Arutha we try work closely with media and journalists to make sure economic news is delivered factually and objectively. This is of mutual benefit to Sri Lankan society. But it is also the responsibility of journalists and editors to follow basic journalistic ethics when reporting on news.

Editor’s note: We regret the above and any inconvenience caused due to the original article.

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