As a point of reference it is worth
noting that as of 2012 in the league of apparel exporters, Sri Lanka did not
rank in the top ten and Cambodia rounded off the 10th with a $4.29B
export with even the USA higher at $5.61B. The FT July 2nd 2014 link
is below with the data. Cambodia in fact was far behind us and is racing ahead of us in this as well as Tourism, and it is time we take a leaf out of their book to see what it is they offer we don't!
Further in 2013 our apparel export total
was $4.26B, and that is gross sales, as there are considerable imported inputs
that go into it and so is NOT value added. This should be compared with a near
US$10B of inward remittances from migrant workers overseas which is pure dividends
into the Country, going direct to a million families amounting to a direct benefit
of over 5 million people, to say nothing of the multiplier effect of indirect
benefit of employment and industry.
Coincidentally both these facts were on
the same page of today’s FT on page 10.
Granted Sri Lanka is aiming to export
high value apparel, due to the fact that wages relative to those in Bangladesh,
where Sri Lankan companies are now opening up factories, are much higher here.
Much is said that our relative level of
exports are falling precipitously and our Balance of trade is in huge deficit.
This is propped up purely due to the remittances. I have said time and time
again, and none in Govt. appears to admit that, but for the bad governance our
growth rate would be even higher.
I was as usual appalled that in today’s
(2nd July Lankadeepa, page 4) the Governor of the Central Bank
attributes all the growth to Govt. policies, when I challenge that none of
their policies would have been worth a hill of beans, because during his tenure
alone at the helm of the Central Bank remittances amounted to a staggering
US$50B and that is why, with all his external borrowings we have reserves of
US$9B which he takes credit as being great! He would not even be walking the
streets of Colombo in his underwear had this great freebie not come to Sri
Lanka from our hard working citizens abroad. We MUST give credit where it is
due, and not permit him to gloat over his performance and that of the Govt. and
get away with hoodwinking the hapless population.
4 comments:
Sri Lanka always had higher foreign remittance but in 2005 our total foreign reserves were a paltry $2.7 billion. Imaging what a fragile economy ours was in 2005?
Also taking exports in to account our total exports in 2005 were $5.3 billion. But in 2013 it was $10 billion with textiles alone contributing with $4 billion. I think for 2014 we can reach $12 billion of exports.
Still don't see any progress?
Oh so liberal US$12B exports is less than 20% GDP when in the past over 20 years ago soon after the open economy we had a much higher, nearly 30% export figure.
So much for Mahindanomics of the current trumpet blowers
Anon,
what is more important? Real growth of exports or the share of exports to the total GDP?
in 1998 our exports were $4.7 billion. After 7 years in 2005 our exports were still $5.3 billion. The growth of exports for 7 years was 12%.
The growth of exports for 8 years from 2005 to 2013 was roughly 100%.
boom!
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