'New trade system' should replace casino capitalism

The casino capitalism which is detrimental to economies has to be replaced with a new trade system, said Former Counsellor, Economist World Trade Organisation, Ms. Nimal Breckenridge.

She was addressing a seminar on 'Global Financial Crisis and its impact on Sri Lanka' organised by the Sri Lanka Economic Association with the Organisation of Professional Associations of Sri Lanka on Thursday.

Ms. Breckenridge said the world economies cannot revert to Marxism and the DasCapital but need to search for a regulatory trade system that will be sustainable.

"The current world trade order is not wholesome and a change in the trading mechanisms is necessary. Sri Lanka should look into its interest and not expect the big players to support the country in a difficult time", she said.

The world financial crisis has an adverse impact on the garment industry which is the mainstay of the country's economy. The employment of over 300,000 people who directly depend on the garment industry is at stake.

Breckenridge said there will be a conspicuous decline in Made in Sri Lanka garments in many stores in the US and Europe. The volumes of supplies to Marks & Spencer and Victoria Secret will be affected.

Senior Lecturer, Department of Economics University of Colombo, Dr. Sirimal Abeyratne said the real transmission effects of the global economic crisis will be on Sri Lanka's export sector, tourism, foreign investment and the increase in cost of borrowing. LF