‘Great start!’

Europe unleashes new trade push on Sri Lanka
• Top Geneva delegation now in Colombo
• $8 Mn capacity initiative taking off
• ‘Great start!’-Rishad
• EU is Lanka’s single largest market!
• Bilateral with EU at $3.2Bn in 2014 Jn-Nov

As a new economic era dawned on Sri Lanka, the EU has lost no time and moved fast to enhance its engagement with the country’s global trade platform to advance it to the next levels-and Sri Lanka’s trade with EU, the country’s largest export market, crossed $3.2 Bn in 2014, as revealed on 21 January. “This latest initiative matches very well with our new government’s vision and a great start! Therefore on behalf of HE the President Maithripala Sirisena, I extend our thanks to the EC for interacting very quickly with us in this event as well as all our trade initiatives and issues” said a thankful Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 21 January in Colombo.

Minister Bathiudeen was addressing the European delegation from Geneva’s International Trade Centre (ITC) led by Xuejun Jiang (Chief-Office for Asia and the Pacific, ITC, Geneva) on 21 January at EDB in Colombo. Joining Minister Bathiudeen on 21 January were RDS Kumararatne (DG-Department of Commerce of Sri Lanka) as well as other DoC officials. The delegations also includes top UNIDO officials from Geneva-among them Juan Pablo Diaz – Castillo, (Associate Industrial Development Officer Quality, Standards and Conformity Unit Trade Capacity Building Branch-UNIDO).

“The Department of Commerce, The Delegation of the European Union in Colombo, and the International Trade Centre (ITC) in Geneva are currently in the process of formulating a trade-related capacity building project, which will enhance the overall performance of the export sector of Sri Lanka. The proposed project, which is scheduled to implement from 2016, will be funded by the European Union. Under the Joint Commission’s Working Group on Trade at Brussels meet last year, possible EU assistance for Capacity Development and EU was inquired into and EU responded positively” said Chief Jiang and added: “Subsequently a proposal was followed through EU Embassy in Colombo. Now the resulting proposal in range of 2 to 7 Mn EURO capacity development exercise in Sri Lanka. Sri Lanka has picked ITC for as coordinator for the entire program. Other economic agencies of the country including government agencies and various Trade Chambers are stakeholders in this exercise. The concept will be developed and implemented by Geneva’s ITC. The Department of Commerce is the local coordinator of the project. UNIDO is also extending its expertise. The new project is expected to commence within a year from now to span three four years.”

EU is Sri Lanka’s single largest export market and has also been SL’s second largest trade partner for a long time. Total exports to EU in this year’s January-November provisional exports stood at $3.21 Bn-huge 32% of the period’s total exports at $10.1 Bn. Total trade with the EU in 2013 was a steady $ 4.95 Bn, slightly rising from 2012’s $4.94 Bn.

“As I am given to understand by RDS Kumararatne, our DG-Commerce, the European Commission (EC) has given Sri Lanka continued and strong support in this project as well as to boost our trade capacity in general. This latest initiative matches very well with our new government’s vision and a great start! Therefore on behalf of HE the President Maithripala Sirisena, I extend our thanks to the EC for interacting very quickly with us in this event as well as all our trade initiatives and issues” said Minister Bathiudeen, and added: “I have been also informed that this consultation process only started very recently-in October and already the work has moved to next phase. We are also thankful to ITC which is no stranger to my Ministry-ITC has already extended its support to my Ministry in 2012 in its EDB benchmarking test and more recently in 2014 July, formulating the ‘Performance Improvement Roadmap’ for EDB. I am pleased to note that our bilateral trade with EU in 2014 Jan-November stood at $3.2 Bn.”

In 2013, Sri Lanka’s exports to EU stood at $3.28Bn rising from 2012’s $ 3.15 Bn, while imports from EU fell to $ 1.67 Bn from 2012’s $ 1.79Bn. EU provides Sri Lanka with the GSP facility.