The government has embarked a clear strategy of trade liberalisation in Budget 2018 with a view to reaching Sri Lanka’s ancient status as a trading nation, Finance and Mass Media Minister Mangala Samaraweera said.
The Minister was speaking at the Annual General Meeting (AGM) of Sri Lanka Apparel Exporters Association, held in Colombo this week.
According to the Minister, to this end, para-tariffs will be removed over a three-year period which will enhance the spirit of competition in the economy.
“Over the years, all of these tariffs and para-tariffs have created a protectionist economy, incentivizing the diversion of resources away from the export sector. The government in parallel will bring in strong anti-dumping laws and trade remedies along with trade adjustments. This will ensure fair competition and support vulnerable industries to become more profitable.”
“The government is also supporting industries’ efforts to link with global value chains. Steps have been taken to enhance market access with the revival of the GSP Plus and soon to be concluded FTAs with China, Singapore and India.”
“A world-class logistics network is also essential to help connect with global value chains. Significant steps are being taken to enhance trade facilitation measures,” Minister Samaraweera said.
The Budget 2018 included allocations for the establishment of a single window, a trade information portal, and numerous other proposals to improve the trade and investment climate. The liberalization of shipping and freight forwarding sectors will also contribute immensely to freight trade, the Minister noted.
“This will help attract investment to position Sri Lanka as a logistics hub. It is also encouraging to note that the apparel industry has made important progress in backward integration. The government is keen to see the development of local designs, innovative product development and R&D.
“Sri Lanka will one day be a hub for design, development and logistics for all major apparel players. This will enable true value creation in the industry.
The apparel industry has made great strides into other key themes emphasized in Budget 2018.”
As Sri Lanka needs to build its foreign earnings, the role of the apparel industry is more important than ever, the Minister said, adding that the government has taken steps to create an enabling environment for further export growth.
The apparel industry aims to achieve an export earnings target of US$ 8 billion in the coming years.
The government will take necessary steps to create an enabling environment to facilitate this objective.
The Minister also urged apparel exporters to strive harder in the coming years to go beyond industry targets.
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