🏛️ Independent Body Vital for Sri Lanka's Trade Reforms, Warns Think Tank

Core Recommendation: The Centre for a Smart Future (CSF) emphasizes that Sri Lanka’s trade reforms, tariff rationalization, and FTA negotiations require an independent, analytically capable Trade and Productivity Commission rather than a basic consultative body. Lessons from the Past: A similar tariff reduction push a decade ago failed due to industry pushback and political pressure. A 2019 Cabinet-approved trade adjustment framework was only nominally operationalized. Key Proposals: • Establish an independent body with its own Secretariat and analytical capacity linked to the National Tariff Policy Committee (proposed under the Feb 2026 National Tariff Policy). • Form Industry Competitiveness Councils to fix sector-specific regulatory constraints. • Launch TVET-based retraining programs and time-bound investment promotion to reabsorb displaced capital and workers in sectors like manufacturing and local industries. Execution Strategy: CSF urges political action to set up institutional mechanisms proactively before protectionist industry pressures build up, while utilizing limited fiscal adjustment funds efficiently.