Need to look at new export markets while sustaining old

by Sanjeevi Jayasuriya

The challenges faced by Sri Lanka's export sector will be addressed under the three-pronged strategies of markets, products and exporters which are the sectoral core pillars.

"Sri Lanka depends on the exports sector for economic growth, but it has experienced market stagnation in the main exporting countries.

Therefore, it is necessary to look at new markets while sustaining the markets in the USA and Europe," Sri Lanka Export Development Board (EDB) Chairman and Chief Executive Bandula Egodage told the Sunday Observer.

"In the backdrop of signing Free Trade Agreements with India, Japan and China, we are exposed to huge markets and our exporters need to be prepared to capture these markets. We also need to focus on new markets," he said.

"The Free Trade Agreements will enhance competitiveness due to low tariff rates and we are on the right track.

We are confident that the export target of 2020 could be achieved comfortably.

The Government's vision with regard to the export sector, which is embedded in the Mahinda Chinthana policy document, will become a reality soon, he said. Over 80 percent of Sri Lanka's export portfolio comprised traditional exports while non-traditional exports are less than 20 percent.

"We could also see a change in this portfolio where it comprises 40 percent apparels, 15 percent tea and other products at present. We need to improve the supply chain and value chain to achieve benefits from value addition," Egodage said.

"We need the right balance where we have 30,000 exporters of which 192 account for 80 percent.

It is essential to go for value addition which is the key factor for the upward trend in exports. The EDB has taken an initiative to improve market access while sustaining the traditional markets where the key focus is on branding and value addition.

"We facilitate related services, technology upgrades, buyer needs, research and marketing and inputs for exporters while providing facilities to suppliers and exporters," he said.

The facilities provided by the Government for the small and medium enterprises are an advantage for the growth of the export sector. The five hub concept is an added impetus for sectoral growth. The main thrust sectors of the economy are garments, tea, rubber, gems and jewellery, processed food, ICT and spices which account for 80 percent of the export product basket.