Navigating Global Trade Finance: Insights from TFAB’s seminal seminar

Trade finance, a critical yet often overlooked component of commercial banking, plays a vital role in generating substantial profits. Despite its low credit risk, trade finance involves significant operational risks, necessitating highly skilled and continuously trained personnel. The Trade Finance Association of Bankers (TFAB), celebrating its 26th anniversary, addresses this need by enhancing the expertise of trade finance professionals.

TFAB’s dedication to professional development is evident through its annual seminars, evening lectures, and interactive programs. These initiatives ensure that bankers, importers, exporters, lawyers, and business leaders stay updated on global practices and regulatory developments, fostering a spirit of goodwill and collaboration within the industry.

The association’s annual trade seminar, a key event in the trade finance calendar, gathers industry leaders to discuss current trends and challenges. This year’s seminar, held on May 18, 2024, at Marino Beach Hotel in Colombo, focused on “Global Trade Finance Trends: Navigating Opportunities and Challenges in a Dynamic Market.” The event commenced with a welcome address by Mr. Shyam De Silva, TFAB President, setting the tone for a day of enriching discussions and valuable insights.

The keynote address by Ms. Shashi Kandambi, titled “Digitalized Trade Solutions,” highlighted Sri Lanka and Asia’s contributions to international trade. Ms. Kandambi discussed the region’s pivotal role and the incomplete adoption of digital technologies. Comparing Sri Lanka’s trade performance with countries like Vietnam, Hong Kong, and China, she emphasized the urgent need for full digitalization to enhance efficiency and competitiveness. Ms. Kandambi’s remarks underscored the necessity for the integration of various industries to foster a thriving trade environment, advocating for technological advancements as crucial for the sector’s future success.

Kumar Muthaih, Director of Strategy at George Stuart Insurance Brokers (Pvt) Ltd, provided an insightful overview of marine insurance, particularly Marine Cargo Insurance. He detailed the types of marine insurance, the risks covered, and the link between insurance and Incoterms. Muthaih emphasized the importance of insurance in mitigating risks, especially in the global context with political and war interests among countries. His session offered a comprehensive understanding of marine insurance’s role in global trade.