Despite major upheavals in domestic and global trade certain export sectors have recorded a growth from January to March this year compared to the corresponding period last year offering a ray of hope to the foreign income generator of the country, said Export Development Board (EDB) Chairman, Prabhash Subasinghe, responding to inquiries on the current state of the export sector and plans to revive it.

He said sectors such as latex rubber, sheet rubber, coconut vinegar, liquid coconut milk, carpets, mats, floor coverings of coconut fiber, coconut husk chips, coconut shell charcoal, cardamoms, ginger, pineapples, tamarind, lemons, onions, sweet potatoes, arecanuts, rice and cereals, furniture and  seats, gloves, mitts and Mittens and petroleum products have shown positive growth during the first three months this year.

The EDB, the apex body for promotion of exports revised its 2020 forecast from US $ 18.5 billion by about 42% to $10.75 billion considering the unprecedented disruption to the global economy and trade due to the global pandemic. 

“As per the revised target, EDB forecasts $ 7.53 billion in merchandise exports and $ 3.21 billion from service exports in 2020,” the EDB chief said.

According to the latest provisional data, merchandise export earnings of Sri Lanka from January to March 2020 was US$ 2577 million compared to US$ 3116 million recorded during the same period in last year, a 17.3% decline.

However, according to the EDB Chairman many steps have been to boost exports to ease the pressure on the Balance of Payment of the country. 

“The government which has granted its fullest support to the exporters to carry out their businesses which are currently operating at 20 -25% level to gradually increase this position. The Ministry of Finance has also issued directives on tax revisions during to enhance economic activities of the country and support business.” Subasinghe said, adding that the EDB is working with all the foreign missions to help exporters to get our exports back on track. 

He said  the crisis has opened up new opportunities; particularly to manufacture face masks, medical wear, personal protective equipment, ventilators, hospital beds and medical bed linen, peripheral equipment for ventilators, soap, sanitizers, surgical masks, sanitary tissues disinfectant and pharmaceutical exports which exports should make every effort to capitalize on these opportunities.

“The EDB is taking every effort to assist the exporters to get on to their feet to commence operations with the current scenario whilst scouting for new opportunities to embark on and establish. EDB firmly believes that there is a great opportunity to establish strong FTAs with China etc., in order to engage in new export opportunities taking the crisis situation into consideration,” Subasinghe said, adding that the EU and USA have been the biggest markets for Sri Lanka over the past. We believe that the EU may recover faster than the USA as it will take time to recover from this crisis. Sri Lanka has been over-depending on a few markets and has been catering to these markets over the past decades. 

He said Sri Lankan companies facing difficulties should be willing to diversify to new markets and it is high time to make that change happen. Companies should also look for new sourcing destinations to continue our production lines uninterrupted.

“The EDB has been focusing on identifying various measures to diversify export revenue streams.  Various discussion/dialogues were conducted internally and with the various stakeholders and the information is being disseminated with the relevant parties.We encourage exporters to re- visit their product portfolio and to identify new potential products (short/medium/long term) and as a developing nation we always encourage new investments with a focus on emerging potential areas in agriculture, industrial and service segments,” the EDB chief said.

He said the demand for many new products are on the rise due to the prevailing crisis and added that we should enhance production of such sectors where the world demand is rising while continuously attempting to sell what the country already has.

The lesser the time that is taken for the adaptation, a greater possibility is there to gain more from trade.

“The EDB officers have been working tirelessly to help the exporters by setting up a  helpline/help desk  to facilitate  to provide assistance during the present situation, publishing  updates  on the EDB website with the government directives through circulars/letters/guidelines etc., liaising and intervening on behalf of the exporters with all the higher authorities , connecting exporters with the foreign missions/Ambassadors to find new opportunities, facilitating with curfew passes abiding with Health guidelines issued/implemented by the government and communicating news to all Sri Lankans /overseas markets by taking initiatives in publishing various news articles pertaining to Export related services,” Subasinghe said adding that it is vital  that all exporters commence operations as early as possible  following  safety regulations.

Source: Sunday Observer – 26^th April 2020

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