24 March 2023 04:30 am
The National Chamber of Exporters of Sri Lanka (NCE) yesterday expressed confidence in the finalised International Monetary Fund (IMF) bailout package paving the way to create a conducive environment for the island nation to trade with the world.
Applauding the efforts of the government in “rebuilding” the country after the massive hit it took from April 2022, the chamber sounded upbeat in Sri Lanka witnessing improved prospects going forward.
”The IMF facility will create opportunities for low-interest credit, restore foreign investors’ confidence, and lay the foundation for a strong new economy.
“This would lead to an impact on the exchange rate and thereby the Cost of Production (COP), all manufacturing sectors will make adjustments and cope better as the exchange rate will be a fine balancing act between sustaining exports and reducing the COP,” NCE said in a statement to the media.
The chamber acknowledged that bagging the IMF loan would result in economic developments, and as a result, foreign importers would have more confidence to import from Sri Lanka. The influx of foreign exchange that would follow would make it easier for local imports to obtain finance facilities as foreign banks would have more confidence in dealing with Sri Lankan banks.
“The EFF is just another loan but will help stabilise the economy and set a path to growth to create credibility and confidence for Foreign Direct Investments (FDI) and exports,” said newly elected NCE President Jayantha Karunaratne.
He added that the chamber hopes and suggests the government to increase its attention towards exporters in the country as it is one of the biggest paths where the country can gain foreign exchange.
According to projections made by the IMF for Sri Lanka, the country’s export revenue is expected to grow by over US$ 16 billion by 2026 from US$ 13 billion achieved in 2022.