Sri Lanka Exim Bank will support pursuit of new markets, exporters say

ECONOMYNEXT – The Exporters Association of Sri Lanka (EASL) said it supports plans to set up an Exim Bank, saying it would provide a much-needed fillip to pursue new markets.

The EASL said in a statement it had articulated the need for an Exim Bank, proposed in the last government budget, for many years. 

“Innovative finance instruments,  exercises such as undertaking due diligence appraisals  on credit worthiness of a prospective buyer,  a  guarantee of repatriation of funds  from an Exim Bank and even focused  capital funding,  are just a few of the benefits that would accrue to the Exporter when venturing into new markets.  
 
“The EASL believes that the support, advice and intervention that becomes possible by a bank dedicated to exports will be the fillip to give exporters confidence to venture beyond   borders perceived by them when addressing the risk element encountered in new opportunities.” 

Without an Exim bank growth of exports has been, and will continue to be, constrained, the  statement said. 

When comparing the performance of Sri Lanka with India and Korea, EASL said the lack of  export support  provided by an Exim Bank,  has precluded Sri Lanka from achieving its growth potential.
(COLOMBO, March 23, 2016)