Sri Lanka-Australia tade
 Australian High Commissioner Bryce Hutchesson |
Trade between Sri Lanka and Australia will reach one billion Australian dollars in the near future, Australian High Commissioner Bryce Hutchesson told a seminar on ‘Bilateral Trade Between Sri Lanka and Australia’ conducted by the National Chamber of Commerce of Sri Lanka last week.
“It is a time of great opportunity and optimism for Sri Lanka to reach its economic goals. Economic reforms that will accelerate the pace of growth is essential. Such reforms should support industries, create more jobs and attract foreign direct investments,” he said.
“Information communication technology and tourism are two key sectors that both countries could collaborate to derive more benefits. Australia will look at a possibility to invest in the mining industry in Sri Lanka,” Hutchesson said.
Trade between Sri Lanka and Australia stood at 910 million Australian dollars in 2015. The Australian economy recorded a steady growth over the years with low unemployment, contained inflation, low public debt and a stable financial system. Australia is an open market with minimal restrictions on imports of goods and services, which has increased productivity and made economy more flexible and dynamic.
Australia is a major exporter of natural resources, energy and food and attracts high levels of foreign investment.
It has extensive reserves of coal, iron, copper, gold, natural gas, uranium and renewable energy sources.
Sri Lanka exports apparel, tea, footwear, virgin coconut oil, solid tyres, retreaded pneumatic tyres of rubber to Australia and imports Masoor dhal, milk and cream, wheat grain, paper and paper board and live animals.
Hutchesson said the economic profile of all countries keeps changing. The economies of Australia and Sri Lanka have started to change. Australia is the largest mix market economy in the world dominated by the service sector which accounts for around 70 percent of the GDP.
“The mining industry is a major contributor to GDP. Australia with a population of 24 million is a trading country. Trade accounts for around 42 percent of the GDP of Australia. Countries need to look externally to grow,” the ambassador said.
He said trade as a percentage of the GDP has dropped in Sri Lanka and added that it there is ample opportunity for Sri Lanka to re-look at the export sector. Australia has a fully blown service industry. Education and tourism are key contributors to the sector.
“Australia is focused on East Asia for trading. China, Japan, India, Singapore and Malay are among the top 10 trading partners,” Hutchesson said.
Citing the Australian Premier, he said, Australia achieved economic success due to its ability to change with time.