A review if the International Trading Environment in Sri Lanka in the Context of Shipping Hub Presentation anjali

1. A review of the
International Trading
Environment in Sri
Lanka in the context of
Shipping Hub

2. • Shipping Hub is a buzzword in
international logistics
• This study reviews the International
Trading Environment in Sri Lanka
in the context of a Shipping Hub

3. Introduction
• Sri Lanka is keen developing as a shipping hub
• Shipping is a derived demand of international
trading
• T/4 trade facilitation is the key
• One key contributory factor is the country’s
strategic geographic location.
• Logistics performance plays a key role in shipping
and trading
• T/4 Logistics Performance Indicator (LPI) should be
evaluated

4. Literature Review
• The international trading environment consists of factors ,
Demography
These changes affects a country’s trade by its impact on comparative
advantage and import demand.
Investments
Investing on physical capital affects international trade and investing on
public infrastructure will support a country to engage in new trade
markets
Technology
Countries vary in their levels of technology and this level affects the
income levels and trade
Institutions
The framework that consists of laws, political regimes, international
treaties and trade policies which decides the ability of trade in a
country.
Natural resources are also a factor that affects production apart from
land and labour.

5. Factors that Facilitate the Trade thus a Shipping
Hub

6. Methodology
• Depth interviews with senior officers of
• Sri Lanka Shippers Council,
• Ceylon Chamber of Commerce, ,
• Department of Inland Revenue,
• Customs and
• Board of Investment of Sri Lanka.
• Secondary data from
• Doing Business Reports of The World Trade Organization,
• The World Bank and the International Finance Corporation,
• The Global Competitiveness Report of World Economic Forum
• Connecting to Compete Report.
• Central Banka of Sri Lanka,
• World Customs Organization
• The analyses were done using SPSS

7.
Singapore U.A.E India Sri Lanka
2014 5 27 54 89
2012 1 17 46 81
Analysis of LPI rankings
Year Rank
2007 92
2010 137
2012 81
2014 89
Sri Lanka
Source: Connecting to compete reports of world bank 2007-2014

8. Hypothesis
1. Transparency in the present regulatory system influence trade
facilitation
2. The regulatory system of neighbouring countries influence trade
facilitation in SL
3. Bureaucratic discretion by government officials obstruct the free
international trading.
4. International trading environment should be made totally free
from the obsolete trading regulations.
5. Sufficient decentralization, strong financial controls and public
accountability is required for better performance in trade.
6. Effective enforcement mechanisms of the concessions offered to
international trade is required.

10. Chi-Square Analysis
Factors
Pearson Chi-
Square
Point
Probability
Significance
1 Transparency .018 .028 
2 Neighbours .041 .097 ×
3 Bureaucracy .009 .057 ×
4 Provisions .000 .006 
5 Barriers .000 .041 
6 Free .006 .083 ×
7 Discretion .006 .083 ×
8 D,FC,PA .087 .171 ˟
9 Concession .029 .007 

11. Conclusions
1. Transparency in the regulatory system in Sri Lanka with
respect to Logistics and Transport has a significant statistical
relationship with international Trading Environment in Sri
Lanka
2. This factor has an impact on the Shipping Hub.
3. Regulatory framework in Sri Lanka provides provisions for
government officials to act as barriers
4. Government officers in Sri Lanka create more barriers than
what is legitimately provided by the regulatory framework
5. Effective enforcement mechanisms of the concessions
offered is required
6. These efforts may enhance the international Trading
Environment in Sri Lanka in the context of Shipping Hub.