New economic policy to follow annual budget - Ranil

Speaking at a media briefing held in Colombo, Prime Minister Ranil Wickremesinghe stated that  GSP Plus will be a linchpin that will help build the export economy of Sri Lanka, giving rise to more job opportunities within the country. 

He further added that GSP+ will help Sri Lanka compete in the richest consumer market in the world – the export industry, while stating that Sri Lanka has found itself in the middle of the key global trade drivers; China, Japan, European Union (EU) and India, making it a neutral hub in the export economy.

Wickremesinghe stated that Sri Lanka, is committed to establishing an open market and economy within the country, as this will help the country become ‘outward looking’, hence why the country is open to acting as the hub of the export economy in the area. 

He further stated that the GSP+ trade concession they received will help strengthen the country’s economy while developing democracy within the country – while the biggest challenge will lie within how well domestic investors will utilize the opportunity created by GSP+, to their favor. 

Reminiscing on Wickremesinghe’s early political career, he spoke about how he had encouraged the fiber and rubber industry back in the day, when he acted as the Minister of Education, reinstating that the main export industries within the country are the rubber and multi fiber agreement.
 
He further stated that with the foreign investors who will be coming into the country, and the global change the country will be part of, it’s their responsibility to  make sure that the private sector of the country was strong enough to invest in large scale trade agreements; like the ones established with India, China and Japan. 

Wickeremsinghe went onto say that although there are barriers to market competitiveness and productivity, the Minister of Development and himself are working towards developing a strategy which will revise existing barriers, leading to a new phase of market liberalization. 

He went onto say that he is planning on bringing in a new economic policy which will follow the budget, during the next annual cycle.
 
Prime Minister further added that the reason behind Sri Lanka’s tight fiscal policy was to help pay out the Rs. 4 trillion the country has acquired in the form of debt.

Wickremesinghe made this statement during the discussion titled ‘Sri Lanka – The Next Asian Economic Miracle?’, organized by the European Chamber of Commerce of Sri Lanka in partnership with the Delegation of the European Union to Sri Lanka, today (19). 

He further stated that in order to increase the productivity within the country,  the government needs to produce a workforce that is dedicated to upholding the highest standards of productivity, and that the plans to make this work, have been discussed and approved by trade unions as well. 

One such plan would include implementing a $400 monthly minimum wage, as Sri Lanka will not be able to, neither want to, compete with the low wage workforces present in Bangladesh and Myanmar. 

Talking on the topic of tourism, Wickremasinghe added that currently, there is only one airline operating direct flights between European countries and Sri Lanka -Sri Lankan airlines, and that the government would welcome any other airlines if they wish to operate direct flights of that sort.

He concluded by stating that this was the right time to focus on economical evolution within the country.