Singaporean economist says Sri Lanka could get more manufacturing investments due to US-China trade war
A Singapore based trade economist has reportedly stated that Sri Lanka could get more manufacturing investment due to the increasing economic tensions between the US and China.
According to the economist, companies in Sri Lanka could try to re-organize supply chains.
“We’re increasingly going to see relocation of fragments of production into territories where they can escape tariff increases,” Amitendu Palit, a senior research fellow at the National University of Singapore’s Institute of South Asian Studies has been quoted as saying in Colombo.
Palit has made these observations during a roundtable discussion on trade organized by the Lakshman Kadiragamar Institute and the Asia Foundation.
Media reports note that the US and China have already slapped each other with tariffs on goods worth billions of dollars.
Trump has also threatened tariffs on more Chinese products.
The statement by the Singaporean economist is a sign of the potential of Sri Lanka’s economic growth. Sri Lanka stands to benefit from many developments in the Asian region given its prominent geographical positioning in the Indian Ocean. Also, the many trade agreements enjoyed by Sri Lanka have given the country additional benefits when engaging in global trade. Therefore, foreign businesses/investors could explore business opportunities in Sri Lanka and enter the country.
|Article Code :||VBS/AT/12092018/Z_4|