Trade Distortions will be wiped out to ensure level playing business – Finance Minister Ravi Karunanayake

Minister of Finance Mr. Ravi Karunanayake opined that trade distortions where one party is given concessions and the other party being provided with protectionism   should be taken out of business when the country is fully transformed into manufacturing economy for which the process is underway.

Finance minister was speaking at the ninth session of the Ease of Doing Business forum organized by his ministry and held at the MILODA centre in Colombo. Ease of Doing is the forum where grievances of the businessmen are addressed with on the spot solutions provided by the state institution and officials present there.

Ninth session of the Ease of Doing Business Forum had accommodated a large number of trade related issues that needed mostly the solutions with the intervention of the Finance Ministry. Minister Malik Samarawickrema, Central Bank Governor Mr Indrajith Coomaraswamy Secretary to General Treasury Dr . R.H.S. Samarathunge and officials from state banks, Sri Lanka Customs and other Regulatory bodies were associated with the Minister of Finance and representatives of line agencies to provide on the spot solutions to the problems raised by the business community.

Mr. Ravi Karunanayake speaking at the forum said that government expects more foreign investment that would promote more export oriented  business inclusive of  entrepot trade. Sri Lanka wants foreign debts to be replaced by investment which is the policy of the government of President Maithripala Sirisena and the Prime Minister Ranil Wickremasinghe

“Ontrepot trade is one area that will be promoted with all necessary facilities and  all irritants that are there on its way will be removed” said the minister replying to a query raised by an ontrepot businessman who said that the facilities offered by the banks, SLPA and the Sri Lanka Customs  on ontrepot trade is costly for them to engage in that trade.

Central Bank Governor  replying to a question on the facilitating the trade with Iran said that some sanctions  on certain items have been revoked and the tea is one such item that could be now exported to Iran. When the exporter concerned pointed out the difficulty in the money transaction, the Governor said that though the tea export does not come under the US sanctions, the ban on financial transaction has not yet been lifted.

Mr Indrajith Coomaraswamy, the Governor CBSL said that his banks officials in Washington had already approached the US officials in this regard. He also said that according to Central Bank of Iran there is a possibility  for transaction of money through the Central Bank of Italy. The Governor asserted that  once the ongoing discussions with US officials and the officials of the Italy bank is completed it could be possible to pave the way for the transaction under the normal SWIFT arrangements.

Sri Lanka’s endeavours to establish barter trade with Iran like what is practiced by India  did not materialize in the case of  Sri Lanka as the country does not have large volume of exports to Iran.