Financial Times

End of war positive for economic growth

Exporters Association of Sri Lanka (EASL) has commended the government on securing the US$2.6 billion stand-by facility from the International Monetary Fund (IMF) and hopes to see economic development with an improved conducive business environment and a stronger economy accompanied by greater foreign direct investment inflows.

Addressing the AGM of the Ceylon Chamber of Commerce (CCC) recently, Chairperson of EASL Nirmali Samaratunga said the year under review has been particularly challenging to the export sector due to high economic turbulence both internationally and locally.

EASL Chairperson Ms. Nirmali Samaratunga addressing the gathering. Members of the head table from left – Dr. Anura Ekanayake – Chairman of Ceylon Chamber of Commerce, Anil Koswatte – Chairman/CEO EDB, EASL Vice Chairman Lasantha Wickremasekera and Ms. Dawn Austin.

Management of the Sri Lankan economy in 2008 and continuing into 2009 has proved a major challenge for the government, Ms. Samaratunga said. While export led growth should remain a priority of the government, infrastructure development, North and East reconstruction and regional development and encouraging Foreign Direct Investment through innovative investment models and incentive regimes also need urgent attention.

Ms. Samaratunga said total exports in 2008 was US$8.1 billion, a 6.5% increase over 2007, ‘a further step in our quest towards the US$10 billion export target.’ She added that the performance was down from the average growth of 12.7% in the three previous quarters, mainly due to the contraction of the global demand towards the end of the year.

The major export oriented industries of apparel and the leather sector recorded a slower growth of 3.1% in 2008, due to external pressure, following major buyers adopting a more cautions approach in placing orders, and world economic recession. “Easing the present uncertainties in the EU markets regarding the retention of the GSP+ facility for a further period of three years from 2009 and the adoption of eco friendly manufacturing models will no doubt help the apparel sector to withstand the challenges ahead,” she said.

Agricultural exports grew 23.1% to US$1.85 billion in 2008, contributing approximately 20% to the export growth, mainly due to the attractive commodity prices during the first half of 2008. Ms Samaratunga said tea exports generated US$1.27 billion in 2008, the highest ever earnings recorded, benefiting from strong international prices during first three quarters of 2008. The sharp drop in tea prices witnessed during the last quarter in 2008 and the crash in commodity prices in general, plunged the tea industry into crisis, compelling the government to intervene with a price support scheme through the Tea Board.

Top to the page  |  E-mail  |  views[1]
Other Financial Times Articles
> US report highlights corrupt Lankan deals
> Central Bank requested to rectify Banking Act anomaly: CSE
> Seylan withdraws disputed letter
> Smiling Lanka 22nd happiest place to be
> Hayleys to present strategy report next week
> Insurance Board seeks new DG
> Golden key is a ‘bribe’
> COMMENT - Corruption 2: Under world scrutiny
> Corrupt privatization doesn’t deter IMF lending to Sri Lanka
> Water's Edge revival case dismissed
> IMF loan will boost reserves
> Hikka Fest draws the crowds with scintillating drum festival and other top performers
> Ceylinco Takaful registration suspended for 3 weeks
> EFC workshop on the survey on manpower issues
> FCCISL, Oxfam partnership for humanitarian emergencies
> Lankan foreign reserves rise sharply in four months
> Sri Lanka’s Heladiv opens stores in China
> Computer training for visually handicapped
> End of war positive for economic growth
> ‘Horlicks Smart Pass’ seminars for Grade 5 scholarship students
> Hertz for hire in Lanka
> 12 bank accounts of F&G suspended
> Fitch affirms Standard Chartered Bank despite adverse publicity issues
> Airtel in partnership network to spread its services
> DFCC profits gain in first quarter
> Lankan inflation remains low in July
> Nawaz and Manilal join CCI as Vice Presidents
> Haycarb maintains growth in 1Q 2009-10
> ICASL ‘Leads a New Beginning’ at 30th National Conference
> Cornucopia Lanka offers assessment solutions
> AIU Holdings advances towards operating independence
> PBJ case to be mentioned
> Room to Read challenge to local businesses
> Good performance in three sectors sees Hayleys profits rise by 16%
> Biz delegation from Yunnan Province, China keen on investment
> SLT, Mobitel unveil flagship store in Kandy
> Tokyo Cement’s new concrete mix for homemakers
> Sri Lanka Tourism officials return after study tour
> Heritance Kandalama partners AFLAC to uplift school library in Dambulla
> Ogilvy Action gearing to enter North and East
> UAL reports steady progress in 2Q
> KVPL wipes off first quarter losses in 2Q ’09
> $25 mln investment from the US under discussion
> Heritance Kandalama partners AFLAC to uplift school library in Dambulla
> IMF agreement will not stop spending increases for North and East – Central Bank
> CB urged to expedite the GK repayment plan
> Rice processing centres for Batticaloa
> Spence 1Q2009 records a 22.3% drop in profits
  Sampath Bank Post Tax Profit up by 29.8% in 1H 2009
> Moneragala to be developed as Sri Lanka’s rubber industry hub


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2009 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution