November 13, Colombo (LNW): The European Union (EU) remains committed to supporting Sri Lanka’s economic recovery and expansion, with a particular focus on strengthening trade relations.
During a recent meeting with the Export Development Board (EDB) Chairman Mangala Wijesinghe, EU Ambassador to Sri Lanka, Carmen Moreno, reaffirmed the EU’s dedication to fostering economic stability in Sri Lanka.
Accompanied by Deputy Head of Mission Lara Bredal, Moreno emphasized the critical role of anti-corruption measures and governance reforms in attracting further EU investments.
She praised Sri Lanka’s ongoing efforts to combat corruption and improve its institutions, noting that transparency is essential for building investor confidence.
Moreno also highlighted the country’s progress in anti-money laundering and counter-terrorism financing, along with its commitment to international environmental, labor, and human rights standards.
These factors are crucial for encouraging foreign direct investment (FDI) from the EU, which is particularly sensitive to such criteria.
The EU has supported several infrastructure projects in Sri Lanka’s Uva region, including the establishment of a new Business Service Center in Nuwara Eliya, the renovation of a tea estate water supply system in Ragala, and a potato seed production unit in Kandapola.
Through its support of over 600 micro, small, and medium-sized enterprises (SMEs), including more than 200 women-owned businesses, the EU has made a significant impact on income generation, market development, technology enhancement, and business skills.
These initiatives have not only helped reduce barriers for women entrepreneurs in accessing finance but also contributed to the creation of over 1,500 jobs, significantly boosting female participation in the workforce.
In 2023, the EU became Sri Lanka’s second-largest export market, with merchandise exports surpassing $2.71 billion. The EU market remains a major destination for Sri Lankan apparel, which plays a key role in driving export growth and job creation.
Additionally, Sri Lanka benefits from preferential access to the EU market through the reinstated Generalized Scheme of Preferences Plus (GSP+), which offers duty-free access on 66% of tariff lines, providing a critical boost to Sri Lanka’s economy.
The EU has also been instrumental in enhancing Sri Lanka’s trade capabilities. It provided valuable technical assistance to the EDB in securing Geographical Indication (GI) certification for Ceylon Cinnamon.
Furthermore, the EU-funded Trade-Related Assistance project, which concluded in 2021, helped local SMEs boost their competitiveness in both EU and regional markets. Special focus was placed on strengthening value chains in sectors such as spices, processed foods, and IT/BPO services.
As a result, Sri Lankan SMEs entered new markets across Europe and Asia, with over 300 business meetings facilitated and 120 companies receiving tailored training to improve their export capabilities.
The EU’s collaboration with Sri Lanka is set to continue with a focus on deepening trade relations. At the conclusion of the meeting, both EU representatives and EDB officials expressed their commitment to enhancing cooperation and trade integration.
EDB Chief Mangala Wijesinghe noted that political stability and policy consistency in the lead-up to Sri Lanka’s upcoming General Election would further enhance the country’s attractiveness for foreign investment.
The EU’s ongoing support plays a vital role in bolstering Sri Lanka’s economic prospects and positioning it as a competitive player in international trade.
