1,720,976 research outputs found
The lure of Chinese loans : Sri Lanka’s experiment with a special framework to finance its infrastructure investments - Presentation
No full textThis IKR entry contains the slide deck presented at the 'Lure of Chinese Loans' event held on the 22nd of September 2022. The presentation has 39 slides and it is available in English and Sinhala.China was the leading provider of external finance to Sri Lanka for infrastructure development during 2010-2016 accounting for 37% of the total. Sri Lanka borrowed USD 5,895 million from China for infrastructure development during this period. More than half of these loans from China (53%) came through a special regulatory framework set up in 2010, enabling the government to entertain unsolicited proposals (USPs) for public funded infrastructure projects circumventing the normal competitive procurement process. This research paper delves into the design and the actual practice of this special regulatory framework. Based on published and unpublished official documents and conversations with the officials, the paper unravels the flaws in the design and the execution of the special framework. In depth investigation of a water supply scheme implemented via the special framework demonstrates how the flaws in the design and the implementation led to outcomes different from the ones expected at the time the framework was established. It reveals the hidden costs the country incurred to secure funds for its infrastructure development and the ineffectiveness of the oversight processes in place to detect and prevent malpractices and irregularities
Another Export Target Destined to Be Missed?
Full text link3p. This article was published as an opinion column by the Daily Mirror in print and is available online at https://www.dailymirror.lk/opinion/Another-export-target-destined-to-be-missed-Sri-Lanka-is-aiming-to-double-its-goods-export-revenue-by-2027-but-history-is-not-on-its-side/172-264458In a recent statement, Sri Lanka's Export Development Board (EDB) announced plans to secure USD 31.3 billion revenue from total exports (both goods and services) by 2027. The EDB expects to double goods export revenue from 2022’s USD 13.1 billion to USD 26 billion in 5 years – a yearly growth rate of 15%. Sri Lanka has a history of seemingly ambitious export targets being missed and subsequently downgraded, and these fresh export aspirations face potential skepticism. For instance, the government expected to double goods exports from USD 10.6 billion in 2011 to USD 20 billion by 2020. However, as of 2022, goods exports of Sri Lanka earned only USD 13.1 billion, and the country has failed miserably to reach its target. Given that Sri Lanka only managed a modest increase of less than USD 3 billion in its goods exports over a decade (2011-2022), the aspiration to double exports in just five years, amid a global economic downturn and the uncertainty created by the rivalry between major economies, appears overly ambitious. In fact, the EDB is already facing a setback, in only the first year of its 5-year plan. Contrary to its expectations, the goods exports in the first five months of 2023 fell by 8% compared to the same period in 2022. The goods exports target set for 2023 is USD 15.9 billion. The slowing down of exports, combined with the gloomy forecasts made by the apparel industry that accounts for over 40% of the country’s exports, will make it challenging for the EDB to meet its 2023 target
Why Does Sri Lanka Claim It Has Less Capacity Than Least Developed Countries for Trade Facilitation?
Full text link3p. This article was published as an opinion column by the Daily Mirror in print and is available online at https://www.dailymirror.lk/opinion/Why-SL-claim-it-has-less-capacity-Than-least-developed-countries-for-trade-facilitation-Concerning-notification-made-to-the-WTO/172-261553Higher costs and time resulting from opaque, complex, time consuming, manual export and and import procedures discourage businesses from engaging in international trade and undermine their international competitiveness. Such costs and time can be significantly reduced by simplifying, streamlining, and automating import and export procedures and making them more transparent. Doing so is referred to in trade jargon as trade facilitation. Research on the commitments and progress made in trade facilitation by Sri Lanka, a lower middle-income country, reveals that it is not only falling behind other middle-income countries but is also falling behind the least developed countries (LDCs). Over the last six years, Sri Lanka has made less progress than LDCs in making the country’s import and export procedures more efficient, more transparent, and less costly. What is alarming is that Sri Lanka, despite being a lower middle-income country, has claimed that it has lesser capacity than the LDCs to do the needful. This does not bode well for a country that is in dire need of foreign exchange. It is vital to take steps without delay to reverse this trend
Opening up Trade Data: The Benefits to Sri Lanka
Full text linkA presentation, based on the findings of this policy note, titled "Unlocking the Potential of Data: A case study - Data dissemination practices in Sri Lanka Customs (Presentation)", is also available in the IKR.International trade data are the foundational basis when formulating trade policies and assessing their impacts. Trade data is vital for firms engaging in international trade to make sound business decisions. Unfortunately, when compared to regional and international best practice, Sri Lanka is failing to use trade data effectively for the benefit of the country. This policy note unpacks the importance of free and online access to trade data and highlights the problems of Sri Lanka Customs (SLCs) restrictive data dissemination policy. These hurdles, which must be resolved, have caused Sri Lanka to lag behind regional peers that have made considerable attempts to make their trade data free and easily accessible
Reducing Domestic Barriers to Export Success Simplifying and Rationalising the Exporter Registration Process is Critical
Full text linkExport promotion has been a key policy objective of successive governments in Sri Lanka. his note critically ex amines the current process that local businesses in Sri Lanka must follow when venturing into export markets for the first time; transitioning from a business catering exclusively to the domestic market to one that engages with an export market. finds that although the current registration process was introduced with the intention of identifying and supporting new exporters, its execution severely impedes the achievement of this goal. The lengthy, inefficient and burdensome process currently in place does more to hinder rather than help Small and Medium Enterprises (SMEs) that are more in need of government assistance to enter international markets compared to larger firms
Unlocking the Potential of Data: A case study - Data dissemination practices in Sri Lanka Customs (Presentation)
No full textThis presentation was prepared and delivered by Subhashini Abeysinghe and Mathisha Arangala at an external seminar.Successful economies have increasingly recognised the importance of improving access to data collected by governments. Accurate, timely and easily accessible data helps private sector growth and results in improved delivery by government. Sri Lanka Customs is the key government agency that collects trade data. Access to timely trade data is vital for firms engaging in international trade to make sound business decisions. It is also the basis on which countries should be formulating their trade policies and assessing their impact. This seminar presented a case study on the data dissemination practice of Sri Lanka Customs. The case study demonstrated how restrictive practices by government agencies and the incentive structures in place can hinder timely access to data. As a result, the growth and development of the private and public sectors are undermined. Data is collected using public funds, but restrictive practices prevent it from translating into public benefit
Sri Lanka Falls Behind Least Developed Countries in Trade Facilitation: Here are Three Steps it Can Take to Reverse This Trend
Full text link14p. The Background Notes of Verité Research Sri Lanka Economic Policy Group provide preliminary assessments, stating appropriate assumptions to overcome constraints in the availability of data. Members of the Group are Prof. Dileni Gunewardena, Prof. Mick Moore, Dr. Nishan de Mel, and Prof. Shanta Devarajan. Editorial support was provided by Hasna Munas and Nishan de Mel.This note compares progress made by Sri Lanka against its regional competitors, other developing and least developed countries in facilitating trade by making import and export procedures of the country efficient, less costly, and more transparent. The comparison is done by using the notifications on progress made by countries under the World Trade Organisation’s Trade Facilitation Agreement (TFA) as a yardstick. The analysis finds that Sri Lanka’s progress falls below not only its competitors and peers but also the least developed countries. Based on the findings, this note provides three lessons Sri Lanka can learn from the experience of others who performed better
Opening Up Trade Data: The Benefits to Sri Lanka
Full text linkInternational trade data are the foundational basis when formulating trade policies and assessing their impacts. Trade data is vital for firms engaging in international trade to make sound business decisions. Unfortunately, when compared to regional and international best practice, Sri Lanka is failing to use trade data effectively for the benefit of the country. This policy note unpacks the importance of free and online access to trade data and highlights the problems of Sri Lanka Customs (SLCs) restrictive data dissemination policy. These hurdles, which must be resolved, have caused Sri Lanka to lag behind regional peers that have made considerable attempts to make their trade data free and easily accessible
ETCA With India: Time to Shift Focus From Market Integration to Supply Chain Integration
Full text link5p. This article was published by the Daily mirror as an opinion column in print and is also available online at https://www.dailymirror.lk/print/opinion/ETCA-with-India-Time-to-shift-focus-from-Market-Integration-to-Supply-Chain-Integration/172-258252This article looks at; 1) what are global supply chains and why do they matter; 2) how new trade deals are focusing more on supply chain resilience than market access; 3) how current trade deals with India are focused on market access; and 4) why it is important to prioritise supply chain integration & resilience
Zoned Out: Export Ambitions Hindered by Land Limitations
Full text link3p. This article was published as an opinion column by the Daily Mirror in print and is available online at https://www.dailymirror.lk/opinion/Zoned-Out-Export-ambitions-hindered-by-land-limitations/172-269037The experiences of East Asian and Southeast Asian countries such as Malaysia, Vietnam and Thailand, show that foreign direct investment (FDI) into export-oriented sectors is critical to accelerate growth in manufactured exports. But, compared to these countries, Sri Lanka has a poor track record of attracting foreign direct investment (FDI). The total yearly FDI inflows into Sri Lanka have remained below USD 1 billion for decades. In contrast, during the last decade, average annual FDI into Malaysia was USD 10 billion, Thailand USD 9 billion, and Vietnam USD 12 billion. With an annual FDI track record of over USD 2 billion, even the Least Developed Countries (LDCs) in the region, such as Cambodia and Bangladesh, fare better than Sri Lanka.
Sri Lanka has known for a considerable time that the difficulty of accessing land, a basic requirement for any investment, is a key bottleneck investors face in Sri Lanka. For example, enterprises surveyed by the World Bank in 2011 identified access to land as the most critical challenge faced when investing in Sri Lanka.
Industrial zones, specifically export processing zones (EPZs), have been the blueprint for many East and Southeast Asian countries to create industrial land suitable for investments within a short period. These zones offer multiple benefits, such as pre-allocated land, reliable utility services, better road and port connectivity and unified customs services, eliminating the many infrastructure gaps and bureaucratic hurdles investors face in developing countries.
When Sri Lanka embarked upon an export-oriented investment drive in the 1980s it followed the same path and invested in EPZs. Today, it has 15 operational EPZs. However, a study by the Harvard Center for Development Studies in 2016 found that the country's EPZs were operating at nearly full capacity. In the largest zones, namely in Katunayake, Biyagama, Koggala, Seethawaka, Horana and Mirigama, less than 10% of the land was vacant
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