Verité Research proposes three-step programme to boost Lanka’s trade facilitation and catch up with peers

Independent think-tank, Verité Research, has put forward a comprehensive three-step programme for Sri Lanka to enhance its trade facilitation efforts and close the gap with its peers, as it currently ranks 104th out of 125 developing and least developed countries (LDCs).

According to a new study by Verité Research, Sri Lanka’s progress in trade facilitation has been slow, with only marginal improvement from a rate of 29% in 2017 to 31.5% in June 2023. In comparison, 21 out of 35 LDCs have a higher rate of implementation, indicating the need for immediate action.

One of the key issues identified in the study is Sri Lanka’s claim that it lacks the capacity to implement over 69.3% of trade facilitation measures without external assistance. In contrast, other developing countries and LDCs on average require external assistance for only 21.7% and 40% of trade facilitation measures, respectively.

Verité Research’s proposed three-step programme urges Sri Lanka to take ownership of its trade facilitation measures without waiting for external help. The country should promptly publish information on trade procedures, taxes, and fees in a non-discriminatory and easily accessible manner to improve its standing and attract traders and investors.

The second step involves providing high-level leadership to overcome resistance from government agencies and allocate necessary resources to facilitate trade implementation. Comparatively, countries like Vietnam, India, and Bangladesh, which have made better progress than Sri Lanka, have established robust National Trade Facilitation Committees chaired by key officials, enabling efficient decision-making.

The third and final step focuses on transparency and accountability. Verité Research recommends publishing a comprehensive trade facilitation action plan and implementing a monitoring mechanism to track and report progress. India’s successful approach, with a publicly accessible trade facilitation action plan and a well-established monitoring system, has resulted in full implementation of all WTO TFA measures and additional trade facilitation initiatives.

By adopting these three steps, Sri Lanka can improve its trade facilitation performance, outperform LDCs, and catch up with its regional competitors and other developing nations. The recommendations aim to bolster Sri Lanka’s position as a trade-friendly nation and attract increased investment and business opportunities.