Nov 12, 2017

SL govt. ends protectionist policies

Sri Lanka government will end protectionist policies to facilitate exports and help local industries.

The maiden budget presented by Finance Minister Mangala Samaraweera indicates that the government will end protectionist policies and abolish para tariffs in 1,200 items.

It will help the domestic industry to reach international markets by providing support in the nature of subsidies for firms to get shelf - space in foreign markets, economic analysts said.

The budget also announced that an anti-dumping law and anti-monopoly law will be legislated.

Sri Lanka has not been able to perform satisfactorily in achieving a healthy trade balance. However, the government is expecting to formulate a new National Export Strategy and a new National Trade Policy.

Also, establishing a national single window for trade facilitation, and creating a new development bank for development financing with an export-import window will assist to achieve a sustainable trade balance. Economic analysts said.

The overall Balance of Payment (BoP) has improved during the last couple of months mainly due to the steady inflows to the government securities market; continued portfolio investment inflows to the Colombo Stock Exchange (CSE) and the receipt of the 2nd tranche of the foreign currency term financing facility of IMF to the government in August 2017.