News
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.
The countrywide dengue outbreak has intensified, with the death toll rising to 50, by July 16, as the number of reported infections surpassed 73,000, according to the National Dengue Control Unit (NDCU).
The country has recorded 73,455 dengue cases so far this year, with the case fatality rate standing at 0.07 percent, highlighting the severity of the ongoing outbreak.
The Western Province continues to remain the worst affected region, accounting for more than half of the total cases, with 38,700 infections. The Gampaha District has recorded the highest number of cases in the province with 15,341, followed closely by Colombo with 14,625.
The Southern Province has reported 11,382 cases, while the Sabaragamuwa and Central provinces have each recorded more than 6,000 infections.
Dengue cases have shown a sharp increase in recent months, with June recording the highest monthly total of 21,538 cases, while July has already reported 18,076 infections. In comparison, 8,590 cases were reported in May, and 5,651 in April.
Health authorities have identified 175 Medical Officer of Health (MOH) areas as high-risk locations during the 27th epidemiological week. An average of 2,677 new dengue cases are being reported daily, prompting authorities to intensify prevention and mosquito control measures.
The Colombo High Court yesterday (17) resumed hearing the money laundering case filed against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa, under the Prevention of Money Laundering Act.
The proceedings were held before High Court Judge Udesh Ranatunga, where evidence was recorded from prosecution witnesses, under the direction of Deputy Solicitor General Janaka Bandara.
President’s Counsel Sampath Mendis, appearing for Yoshitha Rajapaksa, cross-examined the witnesses during the hearing.
After recording evidence, the court ordered that further examination of evidence be postponed until July 24.
The Attorney General has filed indictments, alleging that Yoshitha Rajapaksa committed an offence, under the Prevention of Money Laundering Act, by purchasing five plots of land in Dehiwala and Ratmalana, valued at more than Rs. 73 million.
Former IGP Chandana Deepal Wickramaratne died after sustaining a gunshot injury at his residence, in Thalangama, yesterday (17), with police saying preliminary investigations indicate that the incident was a suspected suicide.
Kaduwela Magistrate Aruna Indrajith Buddhadasa, on Friday, ordered the Officer-in-Charge of the Malabe Police Station, Police Inspector Pradeep Ranasinghe, to conduct a formal investigation into the death and submit a report to court on its progress.
The order was issued after the Malabe Police Station presented facts before court regarding the incident.
According to police, the Malabe Police Station received information from the Police Unit of the Colombo East Base Hospital, in Mulleriyawa, that Wickramaratne, who resided in the Thalahena area, within the Malabe Police division, had died after being admitted to hospital, with gunshot injuries.
Police Spokesman ASP F.U. Wootler said Wickramaratne had allegedly used the firearm of his personal security officer and shot himself at his residence.
Police said the shooting had taken place at his residence on Parakum Road, Thalangama, on Thursday morning, before he was due to leave for his regular exercise routine. He was rushed to the Colombo East Base Hospital, in Mulleriyawa, with serious injuries but was pronounced dead upon admission, police said.
The deceased’s remains were placed at the Colombo East Base Hospital, where a post-mortem examination was scheduled to be conducted.
ASP Wootler said three police teams have been appointed to investigate the incident. Further investigations are being conducted by the Crime Division of the Western Province South Range and the Malabe Police Station.
Wickramaratne, 63, served as the 35th Inspector General of Police of Sri Lanka from November 27, 2020, to November 23, 2023.
He joined the Sri Lanka Police in 1986 as a Probationary Assistant Superintendent of Police and later served in several senior positions.
A graduate of the University of Colombo and the General Sir John Kotelawala Defence University, he also served as Acting IGP for more than a year, from April 28, 2019, before being appointed IGP, in November 2020.
He retired from the post of Inspector General of Police, in November 2023.
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