Easter Sunday attacks will have serious implications on export sector: NCE

By Shabiya Ali Ahlam

Sri Lanka’s export sector is already feeling the blow from the terror attacks that took place on Easter Sunday, and the negative impact is expected to continue in the coming months, according to top representatives of the sector.

The National Chamber of Exporters (NCE), the apex body representing local exporters in the country, speaking to Mirror Business said the unforeseen attacks will have serious implications on the country’s export sector, some of which have already been felt.

“The attacks have certainly affected the export sector as we have been unable to deliver our goods on time. Factory work could not kick off as this took place soon after the holidays. This is the case for a majority of the exporters,” NCE President Ramya Weerakoon said.

“These attacks have tarnished the name of the country in terms of stability. The impression on Sri Lanka that was coming out positive following the war is now tarnished and will take a while to rebuild,” she added.

Weerakoon opined that by and large the national economy will be affected as the workers, on whom the export sector depends, are not in the right mindset to get on with their daily work.

“Though unavoidable and necessary at this point of time are security measures, the curfews and restricted hours that will have a major impact on the manufacturing sector. This will have negative implications on the sector at large,” noted Weerakoon.

Meanwhile, NCE Secretary General/CEO Shiham Marikar said that all trade delegations to and from Sri Lanka have been postponed until further notice, all of which is a loss for the steadily improving export sector.

“The incident creates a bad image to the country, which will take a long time to rebuild. Also in terms of FDI, this kind of situation will put a stop to even those that are to come on board,” stressed Marikar.

He added that it is imperative for the government to look into these issues and ensure proper security is provided.

“When something like this happens, all businesses come to a standstill, especially exports. The impacts are huge given that exports are of key importance for the national economy,” he asserted.

The NCE also urged that measures should be taken by relevant authorities to disseminate information faster, so that necessary measures can be taken by businesses to minimize impacts. 

Sri Lanka’s merchandise exports rose 7.2 percent year-on-year to US $ 981 million in February 2019, boosted by shipments of industrial products (9.4 percent), namely textiles and garments (14.4 percent), primarily to the EU and the US; and agricultural products (0.8 percent), particularly spices (16 percent) and seafood (29.9 percent). 

Sri Lanka’s exports averaged US $ 741.87 million from 2003 until 2019, reaching an all-time high of US $ 1108 million in March 2018 and a record low of US $ 304.80 million in April 2003.

Calls for aggressive programme to rebuild biz confidence

While expressing concern over the delayed response by State agencies to the recent bomb attacks, the National Chamber of Exporters (NCE) yesterday requested he government to urgently implement an aggressive programme to speedily rebuild the marred image of the country and business confidence in partnership with the private sector. Issuing a statement to media yesterday, NCE urged the government to avoid taking such incidents lightly as it has not only caused much pain and grief to the people at large, but also have created a bad image, and security concerns for Sri Lanka, with a negative impact on most export-led enterprises.

“Our exporters which overcame a much more tragic war over a 26-year period, is ready to take the challenge. But we urge the government, and all those responsible for security related issues not to take things lightly anymore or for granted, under any circumstances, by responding to any type of cautioning by the intelligence arms of the State, by promptly responding with precautionary measures, since there is no purpose in blaming each other, as it happens now, after a tragedy has taken place,” the chamber stated.

NCE further urged the government to promptly educate the public the motives behind the terrorist attacks to prevent the spread of false information by interested groups with ulterior motives, thereby creating further issues for peace-loving people.

The chamber noted that many buyers of its members have already enquired about the stability of the country, and the sustainability of their businesses, fearing supply disruptions since the tragedy.

It warned that the buyers could look for alternative suppliers as they could possibly source similar products from others in neighbouring countries, thereby adversely impacting the country’s export volumes.

Therefore, NCE requests the government to implement an aggressive programme to speedily rebuild the marred image of the country and business confidence, with the private sector. 
Drawing experiences from the past, it emphasised on open dialogue between the government and the private sector to avoid ad-hoc decisions in order to implement favourable solutions to the problems faced by private sector.