By: Staff Writer

November 17, Colombo (LNW): The European Union (EU) has renewed its commitment to aiding Sri Lanka’s economic recovery and promoting trade, as EU Ambassador to Sri Lanka, Carmen Moreno, emphasized during a recent meeting with Export Development Board (EDB) Chairman, Mangala Wijesinghe.

Accompanied by Deputy Head of Mission Lara Bredal, Moreno expressed the EU’s dedication to economic stability in Sri Lanka while underscoring the significance of governance and anti-corruption reforms to attract European investments.

Moreno praised the Sri Lankan government’s recent efforts to tackle corruption and strengthen anti-corruption institutions, highlighting that such initiatives are vital for building investor trust.

She also noted Sri Lanka’s progress in combating money laundering and terrorism financing, alongside its adherence to international standards on environmental protection, labor rights, and human rights. These elements are crucial for attracting Foreign Direct Investment (FDI) from the EU.

The EU has remained a key trading partner for Sri Lanka, ranking as the country’s second-largest export market in 2023 with merchandise exports surpassing $2.71 billion.

Sri Lankan apparel, a major contributor to export growth and local employment, has significantly benefited from this trade relationship.

Additionally, Sri Lanka enjoys enhanced access to EU markets through the GSP+ scheme, reinstated in 2017. This preferential trade arrangement grants duty-free access to 66% of tariff lines, bolstering Sri Lankan exports.

The EU’s assistance to Sri Lanka extends beyond market access. It has provided technical support for Sri Lanka’s Export Development Board (EDB) to secure Geographical Indication (GI) certification for Ceylon Cinnamon, in collaboration with various public and private sector partners.

The National Export Strategy (2018-2022) of Sri Lanka, which aims to strengthen export performance, was backed by the EU’s funding and technical expertise, facilitated through the International Trade Centre (ITC) in Geneva.

Further reinforcing its support, the EU concluded a four-year Trade-Related Assistance project in 2021, which was designed to elevate the competitiveness of Sri Lankan Small and Medium Enterprises (SMEs) in both EU and regional markets.

 The project focused on value chains in sectors such as spices, processed food, beverages, and IT/BPO services. Through this initiative, Sri Lankan SMEs expanded into eight new European and Asian markets, with over 300 business meetings fostering connections.

Additionally, 120 SMEs benefited from targeted training to enhance their export skills, guided by the ITC.

At the conclusion of the meeting, EU representatives and senior officials from the EDB committed to continuing their cooperation to strengthen trade ties between Sri Lanka and the EU, a political and economic union of 27 member states. EDB Director General Champika Dharmasena, along with other key figures, participated in the discussions.

 EDB Chairman Mangala Wijesinghe noted that Sri Lanka’s appeal for FDI is expected to rise with anticipated political stability and consistent policy-making following the forthcoming general election.