Sri Lanka looking at diversifying exports to reach fast growing economies in the Commonwealth
The Ministry of Industry and Commerce has reportedly stated that Sri Lanka is set to diversify exports into fast-growing economies in the Commonwealth.
The Business Times quoting Ministry sources has said the move is aimed at overcoming the impact of dwindling demand in other markets.
There are 53 Commonwealth member states including the UK, with a combined population of 2.4 billion.
The Commonwealth Secretariat has identified 40 new products and 15 new markets with 116 product-market combinations for Sri Lankan exporters with a view of assisting the country diversify its products and markets for exports, the media report has highlighted.
It has already offered technical assistance for Sri Lanka’s export diversification and trade negotiations for a potential market access of US$2 billion in the new areas that have been identified.
Export trends are changing from merchandise to service sectors, a senior official of the Commerce Ministry has been quoted in the report, adding that service sector exporters would overtake merchandise exporters within a couple of years.
Local exporters of BPO services, ICT and logistic sectors are expanding into fast growing economies, the official has pointed out.
Sri Lanka’s merchandise and service exports in 2018 are estimated to reach US$ 17 billion, up 15 per cent from a year earlier and the target for this year will be US$ 20 billion, the Export Development Board (EDB) has stated.
OSL take:
Sri Lanka’s export market has been on a continuous growth path. Local exporters have benefitted immensely by the many free trade agreements and trade concessions enjoyed by Sri Lanka. The export industry in Sri Lanka has also been engaged in sectoral improvements and product diversification to capture new and competitive global markets. The latest move to reach Commonwealth nations with growing economies would help boost Sri Lanka’s exports sector. Foreign importers could look at tying up with Sri Lankan exporters to ensure the distribution of products at competitive rates. On the other hand, foreign businesses could also look at forming joint ventures with Sri Lankan export companies, which will be a lucrative business opportunity for both parties.
| Article Code : | VBS/AT/29012019/Z_3 |