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Lanka needs to switch from investing in non-tradable to tradable goods fast: MP

By NETHMI RAJAWASAM
ECONOMYNEXT –Sri Lanka continues to lag behind in its integration into global production networks due to short-sighted goals of producing non-tradables over tradable goods that can be exported, oppositional legislator Harsha De Silva has said.
“There has been a significant growth in the non-tradable sector and production of non-tradable goods between 2010 and 2019. From the growth in the total economy’s production, 70 percent was from the non-tradables sector which cannot be traded in the international market,” the opposition MP said during a debate in Parliament recently.
Non-tradable goods include items such as public services, real estate and construction, goods with very high transportation costs, and commodities produced specifically to meet local retail consumers.
The MP said that due to shortsighted large infrastructure investments such as the development that has gone into the Hambantota area, Sri Lanka’s production has shown exponential growth in the non-tradables sector.
About 50 percent of the foreign direct investments that came into the country in 2000-2020 were directed towards the non-tradables sector, while only around 25 percent went into the export-oriented market, former Chairman of the Board of Investment Thilan Wijesinghe said at a forum organised by Advocata Institute recently.
“This way the non-tradable sector that was developed with the massive foreign loans was proven to produce short term development that was unsustainable in the long run,” Wijesinghe said.
“In 2010 economic growth was recorded at 8 percent, in 2011 it was 8.4 percent and in 2012, 9.1 percent, but in 2013 it was recorded that it was 3.4 percent,” De Silva said, following a trend that denotes that growth has since been declining, due to the unsustainability of the concentration of investment in the non-tradables sector.
De Silva said North East Asian countries that employed sustainable practices have successfully integrated themselves into global trade networks.
“Our outlook on production should speedily switch to tradable goods or else face the consequences of being unable to match exports with imports,” he said.
The legislator pointed out that the reason behind the popularity of such short term goals in Sri Lanka have been the opportunistic nature of leaders.
“Since the political aim of achieving short term growth in the non-tradable sector had been achieved in the past, essential trade and investment reforms had been neglected. As a result of this, Sri Lanka’s growth was significantly stifled and slowed, in relation to its equals in the region,” he said.
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Navy intercepts craft with packages suspected to be narcotics

A special naval operation at sea led to the interception of a craft with packages suspected to be narcotics.
More details regarding the incident will be released as they become available.
(Navy Media)
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Establish a clean local governance system that utilizes budget allocations transparently for rural development – Prime Minister

Prime Minister Dr. Harini Amarasuriya emphasized the need to create a clean and transparent local governance system that effectively utilizes budget allocations for the development of the rural sector.
The Prime Minister made these remarks on Friday (11), while addressing a public gathering held in Karainagar, Jaffna.
Elaborating further, Prime Minister Dr. Harini Amarasuriya stated:
“This country is rich in cultures and traditions and inherits a proud and prosperous history.
I was deeply moved by the information I received about Karainagar. In 1977, around 80,000 people lived in Karainagar. Unfortunately, today it has dropped to 10,500. What happened to the rest of the people? I also learned that Karainagar is home to some of the most educated and affluent people in the Northern Province. That is remarkable, but the issue is that in order to become educated and affluent, they were forced to leave Karainagar.
Who speaks up for those who could not leave? They are citizens of this country. They are entitled to have equal rights like everyone else does. As the Minister of Education, I looked into the education system in Karainagar. I discovered that there are only two schools offering GCE Advanced Level education, with only two teachers in total. Further, all students who have passed the Grade 5 scholarship exam leave Karainagar to Jaffna for further education.
Throughout the years, there were changes in governments, presidents, national administrations, members of parliament representing this area, local governments, and provincial councils but what have they done to uplift the education of Karainagar?
Education increases the value and prosperity of people. Education is vital as such. However, for decades, the right to quality education has been denied in this region. In addition, there is a severe water issue in Karainagar. Access to clean drinking water which is a basic necessity, comes at a cost to the people in this area. Various projects launched to provide drinking water have never been completed due to corruption.
Further, roads, transport, and many other services have deteriorated due to corruption at the local level. It has been 16 years since the war ended yet what has changed since then? Why have these issues not yet been resolved? That is why the upcoming local government elections are crucial. Problems at the local level must be addressed by local government institutions.
About a month ago, the first budget of the government has been passed.
A significant allocation has been made from all local government accounts for education, health, public welfare, infrastructure, and public transportation but these funds must be spent wisely.
For that, local governments should be governed by clean and corruption-free environment. Therefore, in this election, we must elect people who are free from corruption and dedicated to the purpose of serving the public. In 2024, the people of this country made a decision to change the political culture. On May 6, they will once again have the opportunity to make a thoughtful decision for the betterment of their villages.”
During the event, Minister of Fisheries . Ramalingam Chandrasekar also shared his views:
“Today, the political morality we expected for has taken root in this country. Unlike the governance of previous governments, the representatives of the current government are not exercising the power to enrich themselves and some even do not hesitate to return their salaries for serving the general public.
Today, the public service receives higher salaries, and the government is taking possible decision for the benefit of the people.”
The event was attended by Members of Parliament Shri Bhavan and Ilayankumar, along with other public representatives and candidates contesting in the local government elections.
[Prime Minister’s Media Division]
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Warm Weather Advisory issued for Eastern and Uva provinces and Polonnaruwa and Mullaitivu districts.

Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology for 12th April 2025.
The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Eastern and Uva provinces and Polonnaruwa and Mullaitivu districts
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the table below and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
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