Economist urges...

He pointed out that over the last decade or so Sri Lanka has slipped back substantially on trade openness and as a result trade, exports plus imports, now forms a much smaller share of the country’s GDP than ever before.

“We used to be a nation where trade formed close to 80 percent of our GDP around 2004. By 2015 this had fallen to 55 percent. Let’s compare that to some other leading economies in the region that are doing well. Vietnam’s trade to GDP ratio is now around 170 percent. Malaysia is 150 percent. Thailand is 120 percent. And of course Singapore, an outlier, is at 350 percent.

But all of this indicates the degree to which their economies and their growth is actually driven by international trade. We are a small country with a small domestic market and without International trade we really cannot achieve high growth,” he stressed.

SLIBC, which functions under the aegis of the Ceylon Chamber of Commerce, held its 23rd Annual General Meeting on 29th July, at Ripta Loka hall at the premises of the Embassy of the Republic of Indonesia.

LIBC was established in 1991 with a view to promote trade, investment, tourism and services between the two countries.

Harimawan Suyitno, Ambassador of the Republic of Indonesia in Sri Lanka and the Patron of the Council graced the occasion as the Chief Guest.

The fall seems to be a small downturn with some profit-taking after the recent uptrend, said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

“The overall investor sentiment is quite bullish and it is getting better day by day.”

Investors expected the country’s economic fundamentals to improve after the central bank on July 28 surprised the markets with a 50-basis point hike in its main interest rates aimed at curbing stubbornly high credit growth.

The benchmark Colombo stock index ended 0.07 percent, or 4.65 points, weaker at 6,577.95.

Turnover stood at Rs. 851.7 million, more than this year’s daily average of around Rs. 732.1 million.

Shares of Ceylon Tea Services Plc fell 12.56 percent, while Carson Cumberbatch Plc dropped 1.37 percent.

Analysts said investors also largely shrugged off a Supreme Court order asking the parliament to stop considering a bill to raise the value-added tax as the draft had not followed due process.

The move could put in jeopardy the government’s ambitious fiscal consolidation plan to reduce the budget deficit to 5.4 percent of gross domestic product from last year’s 7.4 percent.