European Union (EU) Ambassador to Sri Lanka Her Excellency Carmen Moreno reiterated their unwavering commitment to uplift the island’s economic conditions by engaging in fruitful collaborations. The Ambassador made these remarks when she made a courtesy call on the newly appointed EDB Chairman Mr. Mangala Wijesinghe on the 7th November, 2024, together with the Deputy Head of Mission Mr. Lars Bredal.
The Envoy expressed satisfaction on the new government’s strong will to eradicate bribery and corruption by enhancing the capacity of anti-corruption institutional mechanisms, emphasising the necessity of wiping out the culture of bribery to attract Foreign Direct Investments (FDI) from the EU. “Sri Lanka’s progress on anti-money laundering efforts and countering the financing of terrorism had been steady and commendable. Also, significant efforts had been made to implement the multilateral environmental conventions apart from demonstrating compliance on both forced labour as well as child labour”, Her Excellency expressed satisfaction in relation to the laudable government policies at the discussion with the EDB’s top officials.
During the conversation with the top diplomat, the EDB Chief pointed out that Sri Lanka’s attractiveness as a destination for FDI would improve considerably in an environment characterised by increased political stability and policy continuity subsequent to the impending General Election. He also expressed his gratitude towards the EU for the extensive assistance and cooperation provided to Sri Lanka over the years to boost the competitiveness and market positioning of the nation’s exports through a wide range of initiatives.
The EU was Sri Lanka’s 2nd largest export market in 2023 in terms of market regions, having accounted for $ 2,718 million merchandise exports. The common market is a major destination for Sri Lankan apparel, which has been instrumental in driving export growth and creating jobs within the country. Sri Lanka also benefits from enhanced market access to the EU under the GSP+ facility, which was reinstated in 2017, offering critical sustenance to the country’s economy. The mechanism of one-way trade preferences offers the full removal of duties on 66% of tariff lines on a variety of products.
The Delegation of the EU to Sri Lanka extended valuable technical assistance during the EDB’s endeavour to obtain Geographical Indication (GI) certification for Ceylon Cinnamon with the support of numerous public and private stakeholders. The National Export Strategy of Sri Lanka (NES 2018-2022) was formulated with funding from the “EU–Sri Lanka Trade-Related Assistance” project and technical support from the International Trade Centre (ITC), Geneva. Moreover, the four-year, EU-Sri Lanka Trade-Related Assistance project, which was concluded in 2021, assisted local SMEs to increase trade competitiveness within the EU and regional markets with special attention given to enhancing value chains in spices and concentrates, processed food and beverages, as well as IT/BPO. In terms of promoting the IT/BPO sector by the EU-funded project, local SMEs entered eight new markets in Europe and Asia with the aid of the collective guidance and monitoring of the EDB and SLASSCOM. Over 300 business meetings facilitated connections, while 120 SMEs received targeted training and coaching to enhance export capabilities with the support of the International Trade Centre – a multilateral agency which works with the WTO and UN Trade and Development to promote global trade.
The meeting ended with the EU representatives and top officials of the premier State Export Promotion Agency agreeing to work in a spirit of mutual cooperation and understanding to deepen the trade integration between Sri Lanka and the influential Political and Economic Union of 27 member States. Director General Ms. Champika Dharmasena and other senior officials too joined the discussion on behalf of the EDB.
