EU envoys asks Sri Lanka to develop long term strategic vision to make country a maritime and IT hub
Ambassador and Head of Delegation of the European Union (EU) to Sri Lanka and the Maldives, Tung – Lai Margue has reportedly said that Sri Lanka should develop and implement long term strategic visions and make use of the country’s location as a maritime hub as well as an IT hub to support the economic growth.
The EU envoy has made this observation at the seminar on ‘International Trade Agreements: Policy options for Sri Lanka’ held recently.
The local media has quoted the envoy as saying that agreements impact the growth of a country. “Lanka has the opportunity to further develop as a trading hub if proper plans are put into action.”
He has also said that the way to move forward is to look for global value chains in which the country fits in and provide added values instead of closing borders for imports.
The EU is considered as one of the trusted partners by many countries with its trade agreements and the benefits it had brought for the growth of the respective countries in reaching sustainable development goals, the state owned Daily News has stated.
According to reports, with regaining the GSP plus facility in 2017, Sri Lanka has gained a numerous progress in conducting trade activities. Accounting for 16% total trading in 2018 before India and China, the EU is Sri Lanka’s largest trading partner and is also Sri Lanka’s biggest export destination with nearly 30% of exports going to Europe valuing for 2.8 billion Euros.
The most notable growth sectors of the country are tea, tyre, clothing, gems, motor vehicle parts and footwear.
“However I’m fully aware that with the recent growth and Sri Lanka becoming an upper middle income country this year, would sooner or later loose the benefits of GSP plus facility possibly within three years time, but closing down these markets for trade and going for imports will not be a suitable option,” the EU envoy has said.
He has also noted that South Asia is expected to grow upto 6 to 7% in the years to come and Sri Lanka as a new upper middle income country should be a part of this regional growth.
“I’m proud to say that the International Trade Center (ITC) collaborated more than 30 to 35 stakeholders of both the public and private sector in delivering trade related assistance on our focused areas to enhance their competitiveness throughout the last few years under the EU – Sri Lanka trade related assistance project,” National Project Coordinator, EU – Sri Lanka Trade related Assistance, ITC, Dayarathna Silva has been quoted as saying.
OSL take:
Sri Lanka and the EU enjoy strong bilateral and trade ties with the island enjoying the benefits of the EU’s GSP Plus trade concessions. The concessions enjoyed by Sri Lanka have helped boost the country’s export sector. Also, Sri Lanka’s geographical positioning in the Indian Ocean region, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region. Hence, there have been many foreign businesses/investors exploring business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/02102019/Z_2 |