Only a few large corporates are engaged in Sri Lankan exports and the government is keen to extend the list of exporters, said Minister of Finance and Media Mangala Samaraweera.
Speaking at the ‘Tech4Trade’ event yesterday, the Minister said that with this in mind the 2017 budget would offer a series of concessions to entice more SMEs to export. He said that under the Unity Government, the country regained the GSP Plus facility and also managed to lift the EU fish exports ban.
“This resulted very positively for Sri Lanka’s exports where there was an 82% increase in fish exports. In addition, there was 12.2% increase of apparel exports to EU last August.” “The government has also introduced several new tools such as Electronic Single Window and RMIS to simplify exports and this too would encourage more exporters. In addition, we will replace the ageing Customs Ordinance which was formulated in 1850 and also the Exercise Ordinance in 1912.”
Malik Samarawickrama, Minister of Development Strategies and International Trade said that Sri Lanka must be an economy that is driven by exports and private investment.
“A trade-oriented strategy is the only path towards prosperity for our people.”
“There is a growing sense that some people simply have not benefited from trade and globalization. Government has made skills development a top priority and is investing more towards it. The business-as-usual approach simply will not work anymore. “Our government has clearly identified innovation as a key policy priority, if we are to move our economy into high gear, make our enterprises more competitive and build resilience to the rapid global changes taking place.”
The Minister also noted that for every business, one day’s delay, that extra procedure, that time-consuming process, all adds up to business costs.
“It all adds to the cost of production, it all adds up to operating costs and it chips away at efficiency in the overall functioning of trade and the government is trying to correct this.”
“Improving trade facilitation will have the biggest impact on small and medium enterprises, which find it hardest and most costly to navigate through restrictive procedures and processes.”
“Trade finance continues to be a challenge, especially for SMEs, and we must do more to find technology-driven solutions for this.”
Minister also said that he was very impressed to learn that Australian banks have begun to pilot block chain trade transactions already. “I was also impressed that Australian fintech companies like Trade Ledger are helping SMEs obtain trade finance more easily.”
President Ceylon Chamber of Commerce Rajendra Theagarajah said that technology was important for businesses and systems like blockchain trade transactions helped banks to be better informed which can improve their financing of SMEs for trade.
Australian High Commissioner in Sri Lanka, Bryce Hutchesson said the Sri Lankan entrepreneur should invest more on technology like that the block chain which would reduce a lot of overheads for businesses.
He said that Sri Lanka has to concentrate more on exporters and the concurrent Australia and Sri Lanka bilateral trade too is at a low ebb of around one billion Australian dollars.
World Bank Country Representative, Idah Pswarayi-Riddihough said that Sri Lanka should try to reduce the trade transaction time.
“It takes a minimum of two days for Sri Lanka when it comes to clearing, while it is less than one day in both Vietnam and Thailand. “This also costs a uncalled for additional expense for them.”
Pix by Wasitha Patabendige
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