Sri Lanka owes its global debtors $65 bn while the lower tariffs have brought in formidable challenges and any tariff adjustments are only a temporary measure. Sri Lanka also seeks flexibilities as well as Special and Differential Treatment during future WTO negotiations.
“Despite Sri Lanka’s commitments to trade liberalization, a lower tariff structure has faced formidable challenges to the government in particular the revenue sources,” said the Industry and Commerce Minister Rishad Bathiudeen in Geneva on Wednesday.
Minister Bathiudeen was addressing the fourth review of the trade policies and practices of Sri Lanka on 2 November in Geneva. The Review from November 1-3, took place on the basis of reports by WTO Secretariat and by the Government of Sri Lanka.
In his lengthy submission to the Review session, Minister Bathiudeen elaborated on Sri Lanka’s achievements in various development indicators and stressed the country’s commitment to WTO’s trade measures. “Developing its infrastructure to increase its economic potential has resulted Sri Lanka’s reliance on foreign debt.
The official estimate of what Sri Lanka currently owes its financiers is $65 billion. The country’s debt-to-GDP currently stands around 75% and significant portion of all government revenue is currently going towards debt repayment.
As a result of the above, the government started experiencing fiscal difficulties to meet with country’s both development and rehabilitating needs. With regard to import and export trade, Sri Lanka maintains a greater openness to international trade.