Business

EDB discusses ways to enhance trade with China

Published

3 years ago

2020/08/31

Export Development Board (EDB) Chairman Prabhash Subhasinghe recently met with Yang Zuoyuan, Economic and Commercial Counsellor of China Embassy in Colombo to discuss opportunities available to enhance trade between the two countries.

The discussions were mainly focused on the importance of further strengthening of trade between the two countries in view of fully utilising the trade potential that lies vastly untapped.

The discussion highlighted the early recoveries achieved by both the countries after the COVID 19 pandemic. According to the IMF, China’s economic growth after the pandemic was predicted, to be 8.2% which will give vast opportunities for its trading partners.

Benefits that could be accrued through preferential market access was discussed during the meeting where such tools could be used to narrow down the current trade gap between the two countries. In this regard, the activation of negotiation process of proposed China Sri Lanka FTA was highlighted as this will act as a catalyst to increase the trade between Sri Lanka and China by exploiting the opportunities available in the market.

Discussions were also had on China International Import Expo (CIIE) where the EDB organized Sri Lanka’s participation from its inception in 2018. Arrangements are being made by the EDB to organize Sri Lanka’s participation at CIIE 2020 as well. This event was an important move of China to open its market and promote trade, and was a platform for international cooperation for all countries to showcase their development achievements and discuss global economic and trade issues

Importance of Chinese investment into Sri Lanka was also discussed taking advantage of regulatory framework of both countries. This will also lead to increasing regional exports utilizing the existing FTA concessions and accelerate the commercial ties.

China is a very important trading partner for Sri Lanka. Total merchandise trade between the two countries stood at USD 4,261 Mn in 2019. Being the top import destination of Sri Lanka, total imports from China to Sri Lanka recorded as USD 4,032 Mn. in 2019 with the share of 21% of total imports.

China was the 11th export destination with the export value of US$ 229 Mn in 2019 for Sri Lanka with main export products of tea, activated carbon, electronic & electrical products, coir fibre, apparel, mineral sands, petroleum products, Pneumatic & Retreated Rubber Tyres & Tubes.

Sri Lankan exporters and producers mainly from sectors of apparel, spices, fresh fruits, and other food & Agriculture products expecting to explore this lucrative market where nearly 400 million people in China are considered as middle-class income earners which is expected to grow 70% by year 2030.

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Business

National Trade Facilitation Committee Secretariat to be established

Published

6 hours ago

2023/06/9

Priyan

The NTFC review meeting in progress

In an effort to accelerate trade facilitation commitments and bolster the business landscape in Sri Lanka, a high-level review of the National Trade Facilitation Committee (NTFC) was conducted at the Presidential Secretariat on Wednesday (7).

The review focused on assessing the progress of trade facilitation commitments and scrutinizing the performance of the NTFC Secretariat. The private sector also voiced their views on expediting actions to ensure the completion of measures ahead of the projected timeline of 2025-2030.

In order to streamline compliance and optimize performance, several directives were issued during the meeting. Firstly, it was decided to establish the NTFC Secretariat under the supervision of the Ministry of Finance. Secondly, immediate measures to be taken to address the staffing requirements of the Secretariat and lastly, the budget allocated for the NTFC Secretariat in 2023, currently under the Department of Customs, was to be transferred to the Ministry of Finance to prioritize pending actions such as the development of the NTFC website and progress reporting system.

During the meeting, deliberations took place concerning the proposed National Single Window, a system aimed at simplifying and expediting trade processes. The participants agreed to expedite the submission of the proposal in a sequential manner to ensure its swift implementation.

Business

PM discusses ADB future projects in Sri Lanka with ADB DG and new Country Director

Published

8 hours ago

2023/06/9

Priyan

Asian Development Bank’s (ADB) Director General for South Asia Kenichi Yokoyama and newly appointed Country Director Takafumi Kadono held discussions with Prime Minister Dinesh Gunawardena on Thursday (June 8) at the Temple Trees in Colombo.

The Prime Minister, while welcoming the new Director General thanked the outgoing DG, Chen Chen for the support extended to Sri Lanka during the height of Covid pandemic and the economic crisis. He thanked the ADB for extending short term, immediate contingency support which has helped Sri Lankan economy to recover from the unprecedented crisis within a short period of time. ADB loan funds amounting to USD 380 mn were targeted for enhancing fiscal space and efficient public financial management system as well as strengthening the SME sector with access to finance. Further USD 250 mn was obtained as budgetary support to develop Capital Market.

The Prime Minister made a special mention about ADB’s US$ 333 million emergency assistance to support import of essential items such as fertilizer, medicines and chemicals for water treatment, working capital support to SMEs, and cash transfer to most poor and vulnerable to mitigate the impact of economic crisis.

ADB Director General for South Asia Keinichi Yokohoma, praised the recovery made by Sri Lankan economy and briefed the Prime Minister about the ADB’s mid-term and long-term projects for economic progress and infrastructure development.

Business

ADB provides Sri Lanka access to concessional financing to facilitate sustained and inclusive recovery

Published

13 hours ago

2023/06/9

Thilina Walpola

Kenichi Yokoyama, Director General of ADB's South Asia Department

Low interest -rate financing broadens country’s options to bridge urgent development financing needs

ADB support now comes in concessional and market-based financing, technical assistance, policy advice, and knowledge solutions

The Asian Development Bank (ADB) has approved the eligibility of Sri Lanka to access concessional financing. The availability of concessional assistance, offered at low interest rates, broadens Sri Lanka’s options to bridge its urgent development financing needs to restore economic stability and deliver essential services, particularly to the poor and vulnerable.

Eligibility for concessional resources among the developing member countries of ADB is based on gross national income per capita and creditworthiness. ADB’s decision was considered based on a request from the Government of Sri Lanka in view of the severe and unprecedented economic crisis that has reversed hard-won development gains.

“ADB is committed to further enhancing its support for the people of Sri Lanka as the country responds to this deep crisis that has severely undermined their livelihoods and well-being,” said ADB Director General for South Asia Kenichi Yokoyama. “The availability of concessional assistance will help Sri Lanka to lay the foundation for economic recovery and sustained, inclusive growth.”

Sri Lanka is now eligible for ADB support including concessional and market-based financing, technical assistance, policy advice, and knowledge solutions that together comprise a comprehensive suite of options to address the crisis. Access to concessional financing will also ease debt servicing pressures through more favorable lending terms.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.