With export income surpassing US$ 14 billion so far this year Sri Lanka is confident of achieving the US$ 17.5 billion target this year, National Chamber of Exporters President Ramal Jasinghe said.
The Export Development Board (EDB) set a target of US$ 17. 5 billion for 2018 and US$ 20 billion by 2020. Statistics show that the export sector had recorded an income of around US$ 14.6 billion so far this year and that by September 68 percent of the target had been achieved.
“If the current export growth rate could be maintained we could easily reach this year’s target,” Jasinghe said and added that this is the time for inward thinking to strategise on our strengths and strengthen our weaknesses particularly in enhancing the value addition component of our exports.
He said by increasing value addition, exporters could record a higher foreign exchange gain which would help seek new export opportunities and invest in research and development programs to boost export performance. An official of the EDB said it is confident of achieving this year’s target as the country has already achieved a major component of the target.
The EDB, the apex body for driving exports in collaboration with stakeholders of the sector launched the National Export Strategy (NES) mid this year to diversify exports and venturing into new markets. The export income recorded last year was US$ 11.6 billion.
Exporters said the NES should be pursued to create a vibrant export sector and achieve its objectives. However, the performance of the export sector during the past years has been poor due to the drastic drop in value and volume of exports.
At the last Exporters Forum last month, the EDB proposed setting up a food authority through the next budget to facilitate regulation of the food sector under one authority. According to the EDB chief there are several institutions dealing with the food sector. “There should be one authority to regulate the industry,” Malwatte said.
The EDB also proposed a market access scheme, where Rs. 5 million in grants will be made available for exporters.
“Nautical tourism is an area that Sri Lanka should promote under the ship and boat building sector to boost tourism. The last boat show held in Galle was a success,” Malwatte said.
Since regaining the GSP Plus scheme in 2016, exports from April 2017 to April 2018 recorded 11 percent growth with apparel exports accounting for nearly 60 percent of the exports with a growth of eight percent. Prior to regaining the EU concession schem, exports from 2012 to 2016 increased by 6.85 percent with coconut oil, processed food, discharge lamps and refined copper and lead alloys contributing a major share to the value of exports. Exports from Sri Lanka advanced 3.7 percent year-on-year to USD 1,037 million in August 2018, from USD 1,000 million a year earlier.