Tar­iffs, wrong way to raise rev­enue: Har­vard aca­demic

Daily Mirror (Sri Lanka) - - SPORTS -

and de­vel­op­ing worlds, where sig­nif­i­cantly lower tar­iffs have boosted ex­ports as well as im­ports and pro­pelled eco­nomic growth.

Talk­ing specif­i­cally about Sri Lanka, he showed how ex­ports have de­clined since 2000, out­weigh­ing the pos­si­ble gains from de­cline in im­ports. In fact Sri Lanka’s ex­ports as a per­cent­age of GDP have been in a freefall, from 33.3 per­cent in 2000 to 12.7 per­cent in 2016.

“Sri Lanka was able to grow its ex­ports un­til about 2000 quite mer­rily. But since 2000 ex­ports have dropped by 20 per­cent.

So what hap­pened? Well, what we do know is what hap­pened to tar­iffs. They were used to raise rev­enue.

Prof. Robert Lawrence PIC BY KUSHAN PATHIRAJA

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