FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

 Lankan exports now feeling GSP+ pinch Vote_lcap68% Lankan exports now feeling GSP+ pinch Vote_rcap 68% [ 178 ]
 Lankan exports now feeling GSP+ pinch Vote_lcap18% Lankan exports now feeling GSP+ pinch Vote_rcap 18% [ 47 ]
 Lankan exports now feeling GSP+ pinch Vote_lcap13% Lankan exports now feeling GSP+ pinch Vote_rcap 13% [ 35 ]

Total Votes : 260

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» NAMU/WATA super gain
by Kaptivajkss Today at 12:43 am

» LOFC Direction
by RAVI1980 Yesterday at 9:47 pm

» BAIRAHA FARMS PLC (BFL.N0000)
by Pbv Yesterday at 9:33 pm

» Bloodbath is Coming ? Correction is Coming ? අලුත් ගෲප් හදාගෙන අපි genuine කියලා එන පරණ මහත්(හොරුන්) වරුන් ගෙන් බේරෙන්න
by stockchaser Yesterday at 9:32 pm

» LANKA REALTY INVESTMENTS PLC -ASCO
by Pbv Yesterday at 9:16 pm

» LOLC waiting for LOFC 100+ and CLC 100+
by Sapudev Yesterday at 9:15 pm

» Key Plantation Company Fair Values - KOTA, TPL and KVAL with very High Upside
by Kaptivajkss Yesterday at 8:31 pm

» LLUB comparison between 2016- 2021 Same EPS Trading at Huge discount
by Kaptivajkss Yesterday at 8:11 pm

» TILE / LWL / RCL
by Thushara Ayya Yesterday at 5:16 pm

» HSenid IPO
by rukshan1234 Yesterday at 5:14 pm

» Month end impact on LOFC and CLC
by Swissinvest Yesterday at 3:05 pm

» Water For All - CIND
by ErangaDS Yesterday at 2:20 pm

» U.S. inflation is one of the highest in the world
by ResearchMan Yesterday at 2:09 pm

» Oil Plummets
by ResearchMan Yesterday at 2:07 pm

» ASPI Trend
by hotstock Yesterday at 12:45 pm

» GEMS at LOW price TYRE. RICH.
by Chathur Yesterday at 11:30 am

» KOTAGALA PLANTATION PLC (KOTA.N0000)
by jehan008 Fri Nov 26, 2021 11:36 pm

» HEMAS HOLDINGS PLC (HHL.N0000)
by LAMDA Fri Nov 26, 2021 11:35 pm

» CFLB hidden gem
by LAMDA Fri Nov 26, 2021 11:34 pm

» Hidden Gem - GLAS - 40/- Soon
by LAMDA Fri Nov 26, 2021 11:29 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ »  Lankan exports now feeling GSP+ pinch

Lankan exports now feeling GSP+ pinch

Go down  Message [Page 1 of 1]

1 Lankan exports now feeling GSP+ pinch Empty Lankan exports now feeling GSP+ pinch Mon Oct 08, 2012 2:17 pm

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

The removal of the GSP+ facility is one of the main causes of the current downward trend in Sri Lanka’s export sector performance, according to economist and former Director of Economic Affairs at the Commonwealth Secretariat, Dr. Indrajith Coomaraswamy.

“The full impact of losing the GSP+ facility is being felt only now, hence there has been a slowdown in Sri Lankan exports more recently. Exporters didn’t feel it earlier but now I’m told by many in the garment sector that the situation is becoming more challenging,” Dr Coomaraswamy said.

Sri Lankan exports contracted by 4.6% from January to July, generating earnings of US$ 5.8 billion during the period in question. However, the European Union’s imports have actually increased by 4.5% year-on-year, reflecting a drastic increase in competition for market share in the region.

Tax concessions granted by the EU through the GSP+ facility were lost in mid-2010; however Sri Lankan exports, particularly garments, had managed to maintain a strong performance.

Dr Coomaraswamy however asserted that the positive performance of the sector despite the loss of GSP+ was more likely a result of supply-side issues in competing countries such as Bangladesh and China.

“There were labour issues in Bangladesh, and Sri Lanka also managed to secure some of the smaller business that would have normally gone to China and that may have staved off the effects of losing GSP+ but low –end consumer goods were the first to go once austerity measures set in, and this means that there is lot more competition in these markets now,” Dr Coomaraswamy pointed out.

“There is real pain in the EU markets and the United Kingdom, and this will continue for the next two years while the EU itself won’t reach precrisis levels of growth for at least the next decade. Things could get more difficult before they get better,” he added.

Dr Coomaraswamy made these comments during an emergency roundtable meeting on the impacts of t he Euro-zone crisis organized by the European Chamber of Commerce of Sri Lanka recently.

A second cause for the downward trend in Sri Lanka’s export performance was the lack of a competitive exchange rate, despite the Central Bank’s about-face on currency policy towards a free-floating rupee, according to Economic Advisor to the European Chamber of Commerce of Sri Lanka, Dr Dilesh Jayantha.

“Sri Lanka’s exchange rate is still overvalued against the dollar. It should be at least at a level of Rs 135 and ideally at Rs 137 to the dollar and that is a rate that will make Sri Lankan exports competitive again. The targeted level of Rs 125 by the Treasury Secretary is foolish, particularly in this economic climate and if this continues, there will be no incentive to invest in the export sector,” Dr Jayantha stressed.

Meanwhile, commenting on Sri Lanka’s current position with regards to foreign exchange reserves, Dr Jayantha sounded a warning note over the levels of borrowed reserves.

“Commercial borrowings are reaching dangerous levels, and the whole situation is exacerbated by the issuing of sovereign bonds to repay debt, whilst the debts from these sovereign bond issues are inturn, funded by the issue of more sovereign bonds in a manner which if you look at it, is very similar to a ponzi scheme.” “Mark my words, if Sri Lanka continues to borrow to pay its debt and it doesn’t take real steps to improve export competitiveness, then within a few years, we will be right back where we were a few months ago in terms of another balance of payments crisis. Unfortunately, we have repeated this pattern many times over the last 30 years and still we manage to not learn our lesson,” Dr. Jayantha concluded.
http://dailymirror.lk/business/economy/22526-lankan-exports-now-feeling-gsp-pinch-.html

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum