Lanka now a potential regional maritime hub

By Lalin Fernandopulle

The Sri Lanka Ports Authority (SLPA) is transforming Sri Lanka into a potential maritime and logistics hub in the region. Enhancing infrastructure investments in emerging economies would have a positive spin-off to rebalance global demand.

It would result in positive investment with tangible growth, said SLPA Chairman, Dr. Priyath Bandu Wickrama at the 43rd Annual General Meeting of the Sri Lanka Shippers’ Council last week.

He said that Euro Zone countries have fallen into recession. Europe has to adjust its large deficit. Strains within the Euro Zone have threatened rebuilding its ailing economy. The Euro Zone crisis could have collateral effect and a spillover effect around the world. Asia is in a stronger position to tackle headwinds from the unsettled global economy provided that the region continues with structural reforms and embraces greater integration to meet its potential.

Asia may be better able to withstand risks today than it was in the past.

“We strongly believe that Asia could continue with its pace of development if steps are taken with regard to increasing innovation, improving governance, promoting services and strengthening social safety nets,” Wickrema said.

China and India being the main assembly hubs, other countries could produce intermediate parts and the assembly could be done in low income countries in Asia to ensure low cost manufacturing economies.

“Some lower value added exports could move towards South Asia. In the long term, we should focus on adjusting to rapidly changing demographic structure and reversing the tide of rising inequality through a greater emphasis on inclusive growth,” he said.

Dr. Wickrama said that at the beginning of 2013, there were 354 trade agreements in-force as notified to the World Trade Organisation and Asia has surged to account for nearly half of the global trade agreements. This increase of trade agreements is driven by Asian economies trying to tap each other’s markets and non-Asian economies attempting to expand in Asia’s large and growing consumer markets.