Forget politics: EU is Sri Lanka’s crucial development partner
View(s):Sri Lanka has built an enabling environment for international business which paves the way forward to identify the potential markets in the European Union (EU).
The EU has not only been a promising market for Sri Lanka but also a development partner, said Rishad Bathiudeen, Minister of Industry and Commerce at the EU – Sri Lanka Trade Dialogue held at the Galadari in Colombo this week.
Minister Bathiudeen said, “The trade and investment dialogue would help identify potential markets in the EU for products and services such as IT, BPO, Agro food and beverages, electronics, gems and jewelries, rubber and plastics while establishing business collaboration for mutual benefits”. Sri Lanka has built an enabling environment for international businesses. EU has been not only a promising market for Sri Lanka but also a development partner, he added.
Some 28 counties in the EU have emerged as number one export destinations for products of Sri Lanka. In 2013 the total bilateral trade between Sri Lanka and the EU stood at US$ 4.9 billion. Sri Lanka’s total export to the EU market increased to $3.27 billion in 2013 from $2.7 billion in 2009. Exports to the EU, in the first quarter of this year, increased by 16.3 per cent to $896 billion. Among the imports from the EU are machinery, chemical and plastic products, woven fabric and base metal, stressed Mr. Bathiudeen.
He also mentioned that in 2013, 60 per cent of the exports to the EU were apparel. Today Sri Lanka has become a venue creator to its strategic partners. This significant development in exports to the EU is the growth in the apparel exports despite the loss of Generalised Scheme of Preferences Plus (GSP+) facility in 2010.
Delegation of the European Union (EU) to Sri Lanka and Maldives, Ambassador David Daly said, “Trade, investment and the economic relations are of fundamental importance to the relationship between Sri Lanka and the EU. EU is Sri Lanka’s largest exporter with more than € 2.5 billion of products in 2012 and import of € 1.3 billion worth of products. Sri Lankan exports to Europe have been growing despite the economic difficulties in Europe during recent years. Sri Lankan exports to the EU increased by 25 per cent between 2009 and 2012.
He also stated that EU is Sri Lanka’s second largest trading partner in 2012 accounting for € 3.8 billion of trade. On a daily basis that translates to more than € 10 million a day which is significant and an important part of the development of Sri Lanka. According to the Board of Investment data, from 2005 to 2012 total foreign direct investment to Sri Lanka averaged over $750 million per year. Out of which EU foreign direct investment accounted for almost $190 million bringing the EU’s share on annual trade investment to almost 25 per cent.
(RM)