July 27, 2012 (LBO) – A contraction in Sri Lanka’s apparel exports, especially to the European Union could have been compounded by tariff preferences to Europe withdrawn due to bad governance, an opposition legislator has said.
De Silva said there were problems with Sri Lanka’s economic data. In 2011 the Central Bank has said that exports had topped one billion US dollars during march 2011 with apparel exports rising to 473 million US dollars.
But the data has later been revised to 362 million US dollars but no explanation has been given for the revision, without explanation, he said.
“As has been pointed out on numerous occasions in the past the authorities have a moral obligation to explain such large adjustments,” de Silva said.
He said exports had fallen despite a steep fall in the currency triggered by a delayed adjustment in interest and exchange rate policies.
Rising energy costs were also hurting exporters, he said.
But in Sri Lanka large firms categorized as’ industry’ including exporters get subsidized energy at the expense of the general population of the country especially the poor, in a Mercantilist state intervention.