“Let’s be realistic on way forward,” says EDB chief

• Says it would take 18 months for export sector to witness normalcy
• 2020 export target slashed from US$ 18.5 bn to US$ 10.5bn
• EDB in the midst of formulating new three-fold strategic plan
• Stresses need for entire export sector to undergo structural change 

By Shabiya Ali Ahlam
The Export Development Board (EDB) yesterday stressed that the local business community needs to be realistic about the post coronavirus (COVID-19) recovery path and attune their thinking to function in what is now the new normal.

Acknowledging that the country’s entire economic landscape has undergone drastic changes in the last six weeks, changes that were not expected at the beginning of the year, EDB Chairman Prabhash Subasinghe asserted the need to focus on long-term measures when charting the way forward.

“When we talk about the recovery, we need to be realistic. We are not able to find a miracle. This is a long-term area we are looking at. We need to start thinking about running a marathon and not a race,” Subasinghe told an online discussion, facilitated by Colombo-based free market-leaning think tank Advocata, which explored the impact of the pandemic on the Sri Lankan export industry.

He stressed that it would take at least 18 months for the export sector to witness some level of normalcy.
Having witnessed a complete change in the economic landscape, Subasinghe shared that the EDB is in the midst of formulating a new strategic plan, as the plans devised at the beginning of the year is no longer relevant given the new context.

In addition to scrapping the recently formulated plan for the export sector, Subasinghe announced that the EDB has been compelled to revise the US$ 18.5 billion export target set for 2020 to U $ 10.5 billion. 

The target for merchandise exports has been slashed from US$ 13.5 billion to US$ 7.5 billion, and service exports from US$ 5 billion to US$ 3 billion.

In an effort to chart a clear way forward, EDB chief said the new plan is being drafted to incorporate the short-term, medium- term, and the long-term focuses.

The short-term plan looks at ways and means to get the entire community back into business and fathom the new norm. 

Subasinghe said that for those who can manage to open factories, it is about moving on, whereas for those who do not have a business due to the hit from the virus, it is about looking at new opportunities. 

For the medium-term the focus is on adjusting to the new normal and tapping into new opportunities that have stemmed from this crisis situation. 

For this Subasinghe said that industries would need to look at reorganizing themselves to meet new demands.
On the long-term, the EDB chief stressed that it is necessary for the entire export sector to undergo a structural change. 

“We have been relying so much on historical exports— apparel and agriculture. That is the structural change that we needed. Sri Lanka needs to redefine itself, its export basket, and look at new products,” he said.

EDB gets blanket authority to approve imports to back export sector

The Export Development Board (EDB) yesterday announced it has been given the authority by the government to authorize any import to support the export sector.

“We have been given a blanket authority to allow import of items that is required for industries engaged in exports. So, we will give approval for anybody to import anything as long as it is related to exports,” announced EDB Chairman Prabash Subasinghe yesterday.

He said that the EDB would roll out a programme in the coming days as to how the imports would be facilitated.
Earlier this month the government announced its decision to restrict non-essential imports. The objective of the decision was to help support local industries in the short-term while protecting the rupee.

The decision added to the woes of the export sector as they rely on imports for their exports.