Govt. eyes US$ 18.5bn export earnings this year; to support NES implementation

Year 2019 Export Performance Snapshot

• Total export revenue: US$ 16.1bn
• Merchandise exports: US$ 11.9bn, up 0.13% 
• Service exports: US$ 4.2bn, up 5.3% 
• 2019 revenue target fulfillment: 87%
• Top 3 export markets: USA (26.37%), 
• UK (8.38%), India (6.37%)
• Main export regions: EU (up 1.7%), 
• US (up 2%), South Asia (up 2.5%)

 By Shabiya Ali Ahlam
Sri Lanka’s export sector has been given an ambitious revenue target of US$ 18.5 billion this year, where merchandise exports are expected to contribute US$ 13.5 billion and services US$ 5 billion.

Export Development Board (EDB) chief asserted it is imperative for the relevant stakeholders, mainly the State agencies, to step up their efforts and be dedicated towards uplifting the sector.

Lagging behind its regional peers in terms of export performance, Sri Lanka’s export revenue reached US$16.1 billion in 2019, falling behind the year-end target of US$ 20 billion, which was revised to US$ 18.5 billion mid-year following the deadly Easter Sunday attacks.

The 2019 earnings saw only 1.5 percent increase from the 2018 figure, with merchandise exports remaining almost at stagnant level fetching US$ 11.9 billion, and services reaching US$ 4.2 billion. 

Sri Lanka’s export performance remains weak when taking into account the export earnings posted by India, Singapore, Vietnam and Thailand which fetched, US$ 323 billion, US$ 441 billion, US$ 242 billion, and US$ 249 billion respectively.

Acknowledging that Sri Lanka’s export performance is dismal, newly appointed EDB Chairman Prabhash Subasinghe stressed the need to make exports a national priority.

“We have not changed our export basket during the last 40 years, and our exporters are faced with a long list of challenges which have gone unaddressed over the last many years. We cannot move forward this way.

“Our exports to GDP has to increase to at least 30 percent from the current 22 percent, and for that it is essential for all State institutions to support the EDB so that we can solve issues faced by the exporters and boost our exports,” Subasinge said addressing reporters in Colombo for the first time after his appointment as EDB chief.

He outlined a number of strategies the EDB would adopt to realize the 2020 target, out of which diversifying the export market and basket remains a top priority. 

The diversification had been an area of priority over the last few years, but little progress has been made in this regard thus far despite various efforts.

In addition to supporting existing exporters and grooming new entities to engage in international trade, Subasinghe said together with the Board of Investment (BOI), plans are afoot in bringing in anchor investors to generate export-led foreign investments since the sector is in much need of knowledge and capital.

He also shared that while there is a push to sign an FTA with China in the coming 12 to 18 months— an essential factor if the country is to witness a boost in its exports— actively exploring an FTA with the Association of Southeast Asian Nations (ASEAN) is as just as important as Sri Lanka’s trade within the region accounts only for 9.4 percent of total exports. He also asserted that EDB will support to implement the National Export Strategy (NES), which has been endorsed by the government, and that key sectors such as ICT/BPM, boat building, spices and concentrates, and wellness tourism, among others that have been identified as NES priority areas, will be assisted.

Subasinghe stressed that EDB will work to achieve the new government’s vision for a prosperous nation, and for that as an export facilitator, the agency will carry out a number activities that will align to three key policies of the government—friendly and non-aligned foreign policy, technology-based society, and people-centric economic development.