Lanka-Iran JCEC talks start in Colombo

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Post-sanctions Iran calls for unprecedented engagement with Sri Lanka

  • 11th Lanka-Iran JCEC talks start in Colombo
  • โ€˜Moving in to Sri Lanka more than everโ€™-Powerful Iranian Minister Chitchian
  • โ€˜Can we re-visit PT-Agreement call?โ€™-Rishad
  • โ€˜New start very attractive for entrepreneursโ€™- Iranian Minister Chitchian
  • Pre-sanctions total trade at $1.6 Bn!

In post-sanctions Iranโ€™s ground-breaking first bilateral with Sri Lanka, the country has called for unprecedented level of engagement with Sri Lanka in multiple spheres-and stressed that business sectors of both sides shall lead the way. Meanwhile, Sri Lanka readily rallied its call for re-visiting the understanding on the prospective Preferential Trade Agreement between both countries that was agreed way back in 2004!

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โ€œIn the new atmosphere which comes after this JCEC plan of action and also favourable conditions in international arena to carry out serious activities, are very attractive for entrepreneurs involved in these sectors. Iran and its new international atmosphere with respect to resolving Iranโ€™s sanctions is completely ready to boost bilateral commercial relations and would like to increase the level of cooperation with Sri Lanka more than everโ€ announced an upbeat Iranian Energy Minister Hamid Chitchian on 24 February in Colombo.

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Iranian Minister Chitchian was delivering his opening remarks in the 11th Joint Commission for Economic Co-operation (JCEC) sessions on the morning of Wednesday 24th at Kingsbuty, Colombo. The first ever JCEC between Sri Lanka and Iran to be held in Iranโ€™s post-sanction era, the session packed more than 100 delegates from both sides for a full day of technical trade discussions. All top Lankan Ministries and agencies-including Ministry of Industry and Commerce, the Treasury, Customs and accreditation bodies, and even reps from Chambers were joining the session. Sri Lankan delegation was lead by Minister of Industry and Commerce Rishad Bathiudeen. The Iranian delegation was led by the powerful and high profile Energy Minister of Iran Hamid Chitchian. Among the 30 member Iranian delegation were reps from Ministries of Foreign Affairs, Petroleum, Utilities, Power & Energy, as well as Iranian National Standards Organisation, Iranian Export Development Bank, and the state owned petroleum giant the National Iranian Oil Company (NIOC) packed the session. Also joining the session were HE Iranian Ambassador to Sri Lanka Mohammed Zaeri Amirani, TMKB Thennakoon (Secretary, Ministry of Industry and Commerce), and Director General of Commerce Ms Sonali Wijeratne, among others.

โ€œIn the new atmosphere which comes after this JCEC plan of action and also favourable conditions in international arena to carry out serious activities such as investment, and cooperation in various economic fields such as energy, water, electricity and gas, industry, mining, banking, science and tech, customs cooperation and so on have been created which are very attractive for entrepreneurs involved in these sectors. Iran and its new international atmosphere with respect to resolving Iranโ€™s sanctions is completely ready to boost bilateral commercial relations and would like to increase the level of cooperation with Sri Lanka more than ever. I hope the governments of Iran and Sri Lanka together signing various MoUs could provide suitable opportunities for protecting their private sectors as wellโ€ said Iranian Minister Chitchian, and added: โ€œI believe that the JCEC and exchange of delegations strengthens bilateral ties, investment opportunities and remove possible obstacles. Iran emphasizes development of relations with all countries. This important policy is apparent in the government of Iranian President Hassan Rouhani in stressing the joint plan of action and solving the nuke issue and pressing ahead with Iranโ€™s determination of further consolidation of friendly relations and cooperation with all countries in the world. Expanding the level of Iranโ€™s relationship in all spheres with Sri Lanka is one of the most important goals of Islamic Republic of Iran. Iran attaches special attention to all Asian countries and in the meantime to Sri Lankaโ€™s position as well. Cooperation and relations between Sri Lanka and foreign policy of Iran must be promoted through bilateral relations particularly in economic, energy, commercial, tourism, training, and health sectors. I myself as the Chairman of Iranian Joint Economic Commission believe that such a momentous goal require greater use of all available capacities along with the practical implementation of the articles of MoU between the two sides. Iran is currently implementing two major projects in Sri Lanka โ€“ Uma Oya and electrification of 1000 Lankan villages in Sri Lanka. I hope the implementation of these projects will help enhance the quality of life of these people. Today I am honored to see that all issues with these two projects have been solved by officials of both countries and by the two Iranian companies -FARAB and SUNIR. The Uma Oya project is running in progress in all aspects. Electrification of 1000 villages project is to achieve 90% target very soon. We consider these two big projects as the very first stepping stones of our cooperation and we hope to define more effective and bigger projects for effective cooperation in our efforts. I invite the Iranian and Lankan partners to implement and finish the projects in due time, and ask the executives of the projects to report their implementation progress stage by stage.โ€

Minister of Industry and Commerce Rishad Bathiudeen stressed the unrealised trade potentials between both countries and stresses the importance of trade with post-sanctions Iran for Sri Lanka. โ€œYour Excellency let me state that we consider this Joint Commission Session to be extremely important for usโ€ said Minister Bathiudeen, and added: โ€œThis joint bilateral session meeting takes place today as both countries by themselves are experiencing, historic new beginnings. The new unity government of Sri Lanka led by HE the President Maithripala Sirisena and Hon Prime Minister Ranil Wickremesinghe, has assured global confidence on our country. The unity government is expected to power, Sri Lankaโ€™s next stage of economic development by introducing major reforms across many sectors. As for Iran, lifting of sanctions and new governance initiatives such as transparency in the country has brought in a fresh beginning and a historic turn for the people of Iran. Our two countries are maintaining longstanding relations in many aspects. This has been built on the fundamental pillars of friendship and mutual cooperation.ย ย  The establishment of the Joint Commission for Economic Cooperation, between our two countries, at Ministerial level in 1987, added further significance, for cooperation for development, and strengthened our relations in trade, economic and technical aspects.

 

This Joint Commission for Economic Cooperation mechanism has played a very important and a crucial role in enhancing our relations in diverse fields that are of interest to both countries.

 

We are aware that in recent past the trade and economic activities have slowed between both countries due to various external pressures. Since trade restrictions on Iran were lifted from early January I am pleased to note that this 11th meeting has become an ideal platform to refresh and re-commence bilateral cooperation and identify new opportunities in diverse fields. The balance of trade between the two countries has heavily and continuously been in favor of Iran over the years and after 2013, it has changed in favor of Sri Lanka. Your Excellency would agree, we still stand much below the real potential in our bilateral trade. Also, though Trade between Sri Lanka and Iran continues to show a positive trend, it is not a steady growth trend and there is room for strengthening it. Total Trade between the two countries has surpassed US $ 1 billion in 2008 for the first time. It then exceeded $ 1.6 billion in 2011 and in 2012 slowed down to $ 858 Million. It further decreased to $ 162 Mn in 2015 due to unconditional decrease of imports from Iran specially on importation of petroleum oil. The major Sri Lankan product in the exports of Iran is Tea, taking 83 percent of the total exports in 2015. The other Lankan exports to Iran are Coconuts, coco peat and fibre, and Industrial gloves etc. Your Excellency, I believe that today the two parties could explore and identify ways and means for product diversification to exploit our trade potentials fully. I note that the finalised preferential trade agreement in 2004 has not been implemented due to various reasons and I am confident todayโ€™s session is the opportunity to re-visit and take appropriate decisions having taken to consideration of present trading patterns and global trade conditions.โ€œ

The technical sessions between of 11th JCEC between both countries are expected to conclude with a way-forward MoU today 24 February itself.