Experts renew call for increased focus on global trade

• Say higher economic growth can be supported by international trade
  Stress there is an increasing need to deepen trade ties with South Asian countries and increase access in 
  East Asia

For Sri Lanka to remain competitive in the global market, stronger efforts are needed to explore and leverage agreements strategically to be competitive with countries such as Vietnam, Thailand, Malaysia, China, and Singapore, the Ceylon Chamber of Commerce (CCC) said.

In doing so and achieving improved access to international markets, Sri Lanka will be able to witness an 8 to 9 percent economic growth rate, Chamber Chief Duminda Hulangamuwa said, while pointing out that depending on 2 - 3 percent growth is not good enough.

According to Chief Negotiator K. J. Weerasinghe, on the other hand, there is need to align with the government’s vision for global market access and attracting investments.  He shared that a three-pillar strategy, focused on protecting and promoting existing trade partnerships with the US and European Union, expanding market access in South Asia with countries like Bangladesh, Pakistan, China, and India, and increasing market access in East Asia with Thailand, Malaysia, and Singapore, is one that can be explored .
“Sri Lanka lost opportunities on the trade side in the last five years, so it needs to act swiftly to capitalise on future opportunities,” he said.

Meanwhile, Deshal de Mel, Advisor, Ministry of Finance and Head of Trade in Services Chapter, highlighted the importance of FTAs in the economic recovery strategy and the need for Sri Lanka to integrate into global and regional value chains. He observed that the non-tradable sector has dominated Sri Lanka’s economic growth, and moving forward, the country needs to move into non-debt- creating avenues and diversifying its exports beyond traditional products. 

“FTAs provide open access to regional trade value chains and create opportunities to participate in regional trade agreements to drive sustainable economic growth,” he said.
He underscored that long-term economic growth is driven by productivity, which is ultimately determined by competitiveness in global markets.