Increasing exports must be put on par with reducing corruption and bribery
The Government’s progress in addressing corruption and bribery is getting attention as a result of various announcements and coverage by the media.
However, continuing to make noticeable and real progress only on corruption and bribery will not be enough to guarantee the NPP’s success in the next election. Nor will it improve the financial well-being of impoverished Sri Lankans, e.g., more and better-paying jobs, reduced VAT; ensure that the government can begin repaying foreign and domestic debt in 2028 and stop the brain-drain.
Failure to make noticeable increased exports leaves the door wide open for the opposition to ‘promised to do better during the next election campaign.
Tourism and remittances are growing, and industries are recovering from the negative impact of covid and the financial crisis. The government is also making some improvements related to foreign investment and economic development and exports but, as pointed out by numerous credible sources, what is needed is for the government to launch a major shake-up to increase exports which includes increasing economic development and foreign investment to make a real and noticeable difference, such as they are doing in corruption and bribery.
For example economist Prof. Sirimal Abeyratne has emphasised the need to increase exports in several of his articles in his weekly column in the Sunday Times Business Times; Singapore-based Prof. Razeen Sally has stated that “Sri Lanka is falling short of delivering the structural transformation it (the NPP Government) claims to seek” while Mathisha Arangala, a lead economist at Verite Research, has stated that “Sri Lanka’s ambitious target of generating US$ 25 billion in merchandise exports by 2030, requires an annual export growth rate of 12 per cent which seems improbable without reform”.
Whereas everyone understands corruption and bribery, the importance of increasing exports and why it takes time to increase exports need to be explained to the public in simple terms.
What must the government do to institute reform and put increasing exports into high gear? The main prerequisite is for the President and the Cabinet to realise the importance of increasing exports and the need to involve the right people – followed by applying four-proven experience-based actions that will lead to results.
Action 1: Establish an Export Development Team that is led by the Minister of Economic Development (i.e., the President) and comprising no more than 10 team members who have an impeccable track record for being innovative and achieving results. Team members must be great leaders and team players who are personally modest but fiercely ambitious for Sri Lanka’s success. Team members should be from government, business and academia. Team members must be willing and have time to take on responsibility for implementation. They may need to establish sub-teams. The President (team leader) must have a secretariat comprising 2-3 qualified aides because he has many other responsibilities and demands on his time. Once established publicise the team and, demonstrate urgency, by announcing that Action 2 will be completed in two months.
The team must apply Actions 2 – 4. This will create reform and result in progress towards Sri Lanka having a vibrant economy. The team must solicit ideas and feedback from stakeholders (business and industry, subject-matter experts, members of parliament, academia and the public) as well as keep them informed and engaged.
Action 2: Develop a vision and a comprehensive strategic action plan. The vision and strategic actions must be bold but down-to-earth. The strategic actions must have short and longer-term targets. The implementation of each strategic action must be assigned to a team member who agrees to take on responsibility for implementation. Challenges must be identified along with tactics for overcoming them. Assumptions must be made explicit. The draft vision and strategic action plan should be reviewed with key stakeholders and, once finalised, made public.
Action 3: Conduct rigorous milestone review meetings every three months. Discussion on progress and results achieved must be candid and deal with the brutal facts. Team members must be held accountable for promises that they made. Differences of opinion must be resolved with win-win outcomes. Assumptions must be reviewed and, if necessary, the strategic action plan must be updated or revised. Milestone targets for the next review meeting must be agreed.
Action 4: Publicise progress reports every three months. The team leader and team members must periodically make announcements to demonstrate progress – announcements should be coordinated by the President’s secretariat. Quarterly milestone review meetings must be followed by a brief, comprehensive and candid report and a press briefing. The purpose of Action 4 is to inform stakeholders of progress and challenges. It’s based on the saying that what is measured and reported gets done. Action 4 can contribute to developing a fan club, a necessity for the government to be re-elected.
The above framework is a top-down approach. Top-down approaches have been used successfully in several countries to increase economic development and exports including Singapore, South Korea and Mauritius. Mauritius’ GDP was US$11,800 in 2024 whereas Sri Lanka’s was $4,500.
Remember that the journey to a strong economy takes time. The government needs to explain this to the public – but avoid using it as an excuse for not making significant progress in the next four years. If tiny Mauritius in the middle of nowhere can do it, why can’t Sri Lanka?
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