A breakthrough in Sri Lanka’s export strategy, and a strong focus on domestic production. Read more on this week's wrap.
A breakthrough in Sri Lanka’s export strategy would serve as a springboard for the country to become a high income economy. Sri Lanka’s merchandise export strategy needs to be revolutionised by diversifying to the export of medium to high technology products such as machinery and equipment, electronics, vehicles and pharmaceuticals, and value added mineral products, from the traditional low technology products such as garments and tea.
The post-Parliamentary Election period has been focused on ramping up domestic production as a means to boost growth. But while becoming self-sufficient in rice and having a five-year plan for local industries is a positive step, it does not provide a viable solution to Sri Lanka’s biggest challenge next year, which is meeting debt repayments.
Sri Lanka, which depends on tourism for about 11 percent of GDP, has delayed its plan to reopen tourism in August. The Sri Lanka tourist ministry in June issued detailed health procedures for hotels, restaurants, taxis, and other businesses. At that time, the government plan called for requiring travelers to be tested for coronavirus before boarding their flight, another test immediately after landing in Sri Lanka, and a third test a few days later.