Sri Lankan exports held back by domestic barriers
"If we could address those barriers, existing especially for agricultural exports, we could enrich the rural and farm economy. Because agricultural exports are perishable they suffer the greatest difficulties within the country, not outside," de Mel told a media conference in Colombo.
A study in this regard was done by Verite Research (VR) together with the Lanka Fruit and Vegetables Producers, Processors and Exporters Association (LFVPPEA).
He said that the study identified three types of domestic barriers that the export sector faces when dealing with border agencies in Sri Lanka; these are, regulatory barriers, administrative barriers and information barriers.
He said that the right kind of regulations for the sector make the business sustainable but the existing regulations are not updated. He believes these regulations, such as the Plant Protection Regulation in Extraordinary Gazette no 16 of 1981 made under the Plant Protection Ordinance no 10 of 1924, which has not been updated for more than 35 years are archaic.
De Mel also said that the Seed Act 22 of 2003 regulate the production of seeds and it was instrumental in mooting a National Seed Council that has not materialized after 15 years.
"Where the perishable export items are concerned, SriLankan Airlines' lead-time for uploading cargo is six hours , which is far too much compared to other airlines in the region. Thai Air takes 1.1.5 hours uploading lead time," he said.
"Yet in addition to this, exporters have to go through additional security checks by the Sri Lanka Airforce at the entrance to the airport," he explainrd.
He said that this increased the time in transit and adds to the cost of exporting and compromises the quality of the products.
Head of Economic Research (VA) Subhashini Abeysinghe said that the time and cost taken to comply with numerous government border regulations are a significant factor affecting the international competitiveness of Sri Lankan products.
According to the Doing Business Index 2017 of the World Bank, it takes 76 hours on average to comply with local export documentary requirements. Other countries in the region take very little time compared to Sri Lanka, she said.
Chairman LFVPPEA Zuraish Hashim said that if this red tape is removed, Sri Lanka could reach export targets. In turn, it would benefit the entire sector, including the plantations.
source: island.lk
