‘SL should move away from traditional exports’

By Lalin Fernandopulle

The Export Development Board (EDB) targets an export income of US$ 14.5 billion this year despite a tough global business environment that has even affected the level of consumption in countries.

The EDB has set an ambitious target and is confident of reaching it, although there has been a major set back in export revenue since last year. Export income dwindled from around 34 percent to 14.5 percent last year given the highly volatile global economic scenario triggered by the instability in the Middle East, the depreciation of the Russian Ruble, the US elections and the European Union turmoil due to Brexit.

EDB Chairperson Indira Malwatta said despite a drastic drop in export income on a year-on-year basis since last year to 16.5 percent, the EDB is confident the gloomy scenario will change in the second half with export volumes and income ticking up.

“We have set an export revenue targets of US$ 14.5 billion this year. Usually export improve in the second half,” Malwatta said.

When queried as to the strategies of the EDB, the premiere body that spurs export development, she said it is high time the country moved away from traditional export items such as tea, rubber and coconut to value-added exports to new markets in Asia and Africa. “We are focusing on Asian and African markets with aggressive promotion of our products.

“We need to diversify the markets and the product basket,” the chairperson said.

“The EDB is focusing on ship and yachting sectors that has immense potential to bring in the much needed foreign exchange to the country. When yachts birth here, the crew spends two to three nights which brings in foreign exchange to the country. The pharmaceutical industry, automotive and value added spices are potential areas to focus on to develop exports,” she said.

She said beside a sluggish global environment, the withdrawal of the GSP Plus concessions, the ban on fish exports to the European Union affected the export sector. Speaking on gem and jewellery exports, Malwatta said FACETS 2016 show will attract foreign buyers and increase exports of the precious stones which currently is the fifth largest export earner to the country. The 26th edition of the FACETS exhibition will be held from September 1-4 at the BMICH.

National Gem and Jewellery Authority Chairman Asanka Welagedera said that the NGJA has launched a program to promote Sri Lankan products in the Russian market which has a wide scope for niche brands. “Sri Lanka has moved into the Russian market but not in a strategic way.

We will come up with a plan to expand the foot print in Russia. It is high time that we go for a new child having a 26-year-old referring to the FACETS which is being held for 26 years.

He said a novel feature of this year’s exhibition is the focus on small and medium enterprises in the industry. Forty exhibitors will be accommodated at the new wing of the show to exhibit their products and build links with international buyers