'Seventy percent of world growth from emerging markets'

Over the past few decades, the global economy has changed rapidly. It changed with the power shift from traditional developed countries to emerging markets in Asia.

According to estimates, 70% of world growth over the next few years will come from emerging markets, Japanese Ambassador Nobuhito Hobo told the members of the National Chamber of Exporters at its Annual General Meeting last week.

He said that economic growth in Asia is expected to grow further over the next decade, with Asia holding half of the global GDP and trade.

Amidst these global trends, Sri Lanka is entering one of the most exciting phases with the sustainable economic growth. Sri Lanka has recorded growth of 6-8% over the past few years.

As the balance of power in the global economy shifts to Asia, the export sector is expected to expand steadily to boost economic growth in Sri Lanka.

In addition, the recent CHOGM in Sri Lanka was an excellent opportunity to showcase the advantages and potential of Sri Lanka to many influential world business people.

Following the outcome by the visit of President Mahinda Rajapaksa to Japan in March last year, the Japan External Trade Organisation (JETRO) conducted a business need survey in October.

The survey identified the business advantages of Sri Lanka such as quality of workers and geographic advantage due to its strategic location in the Indian Ocean.

In this context, Sri Lanka can be a gateway to exports not only to South Asia, but also the Middle East, Africa and Europe. Sri Lanka can effectively use the new EU-GSP scheme and free trade agreements with India and Pakistan to open their markets for Sri Lankan exports.

Sri Lanka can expand export industries such as agricultural products, mineral sand and business and knowledge-processing services, with high added value.

“We live in a turbulent era. The impact of globalisation on businesses is causing more severe and tough competition. In this context, exporters have to improve their productivity and competitiveness to survive. A Japanese survey showed that productivity increases by 2% on average, for companies which start export operations,” the Ambassador said.

To promote the manufacturing industry, it is essential to diversify the economy including the export sector, and it is the best time to bring foreign investments into Sri Lanka, particularly Japanese investments in view of networking Sri Lanka in international market effectively. According to Prof. Peter Drysdale of Australian National University, “The Japanese market is no longer confined to Japan itself. It is a huge international market generated by the activities of Japanese business and investors, especially production networks in Asia”. With years of experience in the export sector, the National Chamber of Exporters can be a major force in enhancing the export sector through diversification, exploring new markets and promoting trade, he said.