CCC chief...
CCC chief wants private sector to up their game
The head of Sri Lanka’s premier business chamber wants the country’s private sector to up their game and the government to expedite crucial policy initiatives such as removing trade barriers and facilitation of skilled migration to the country to improve export competitiveness.
Addressing the post business session of 21st Annual General Meeting of the Exporters Association of Sri Lanka (EASL) last Friday, Ceylon Chamber of Commerce Chairman Rajendra Theagarajah said the private sector should back the courageous policy initiatives such as removal of para-tariffs and other tariffs, which are withholding the competiveness of Sri Lankan exports, while also stressing the importance of relaxing immigration laws to attract skilled workers to face the shortage of skilled workers.
He emphasised that Sri Lankan exporters should capitalise on opportunities arising from a depreciating currency, rather than calling for more protection.
He noted that a complete review of Sri Lanka’s tariff and para-traiff structure is needed to harmonise tariffs with the rest of the region to remain competitive, and hence urged the private sector to back the government to fully implement the initiative.
Theagarajah stressed that the value-added exports have become equally important when growing exports.
“It’s not just about growing exports. We need imports to improve connectivity and competitiveness of our exports,” he stressed.
Theagarajah expressed dissatisfaction over private sector investments in research and development (R&D), while urging the private sector to link up with local universities for R&D initiatives.
“Exporters need to do some soul searching. Ask yourselves, whether you are engaging with start-ups and investing in the future. Do you plough back at least half a percentage to invest in innovation?
“Are you investing and collaborating with universities to develop new products and solutions? Or are you waiting for someone else like the government to do that for you?” he questioned.
Referring to a recent survey conducted by ACCA and KPMG, he said that less than one-in-five business executives knew about China’s Belt and Road Initiative which is a US $4 trillion trade initiative that includes Sri Lanka.
Theagarajah noted that Malta might be a better example for Sri Lanka to draw lessons, which is located in Europe in a similar strategic location to Sri Lanka as it does in South Asia.
He pointed out that Malta, which doesn’t have any natural resources, has been successful in boosting exports, which makes up about 60 percent of its GDP now through open immigration policies, developing its free port and allowing anybody who wants to go into Europe to come and add value through their country.
“We have the greatest window to South Asia, but are we doing enough to encourage those who should be coming here and add value,” he questioned.
Theagarajah also noted that Sri Lanka hasn’t been successful in attracting the diaspora community and their investments back into the country.
He pointed out that lack of quality education and healthcare acts as the main barrier in attracting them back to the country. Hence, he urged the private sector to invest in these sectors.