• Sri Lanka’s Economic Challenge: A stark contrast between Tamil Nadu’s expected growth of 14% and Sri Lanka’s negative 3.5% this year.
• Ambitious Goal of High-Income Country: President’s vision to achieve high-income status by 2048, requiring 6.5% annual growth from now onwards.
• Bridging the Skill Gap: Concerns over the volume of skilled labor produced in India, highlighting Sri Lanka’s need for educational reforms.
• Embracing Trade Agreements: Unlocking the potential of bilateral and regional trade deals to boost exports and attract foreign exchange.
• The Power of Social Market Economy: Proposing a new mindset to achieve social and economic justice in Sri Lanka’s growth journey.
• Focus on Sustainable Development: Emphasizing continuity in policies and a unified approach, beyond party affiliations, for lasting change.
• Seizing Opportunities with India: Leveraging South India’s growth, as exemplified by Tamil Nadu’s success, to benefit Sri Lanka’s economy.

In a recent press conference, MP Harsha de Silva from the Samagi Jana Balawegaya (SJB) addressed critical issues hindering Sri Lanka’s economic progress and outlined a vision for sustainable growth through a social market economy model. The press conference shed light on several factors contributing to the country’s economic challenges and proposed solutions to pave the way for a prosperous future.

Comparing Tamil Nadu’s Expected Growth to Sri Lanka’s Reality:

One of the key concerns raised was the significant disparity between Tamil Nadu’s projected growth of 14% and Sri Lanka’s negative 3.5% growth. MP Harsha de Silva emphasized the need to understand the obstacles preventing Sri Lanka from achieving higher growth rates, especially if the country is to attain its goal of becoming a high-income nation by 2048.

Growth Targets and Production-Based Economy:

To realize the ambitious goal of high-income status, Sri Lanka must grow at a minimum of 6.5% annually until 2048. The MP questioned the feasibility of a production-based economy and emphasized the importance of identifying the right high-tech products or components and target markets to stimulate demand.

Overcoming Skill and Knowledge Gaps:

The MP acknowledged the presence of over 800 higher education institutes in India, particularly in Tamil Nadu, and their role in nurturing skilled labor. However, he also noted that the volume of skilled labor produced in India far exceeds Sri Lanka’s output, which raises significant questions about the country’s ability to compete effectively on the international stage. To achieve sustainable economic growth and development, Sri Lanka must address the disparity in skilled labor and invest in educational reforms to bridge the gap.

Building Bridges through Regional Trade Agreements:

MP Harsha de Silva stressed the utmost significance of engaging in bilateral and regional trade agreements, which would facilitate the free flow of goods and further promote international trade for Sri Lanka. Emphasizing the need to embrace technological advancements in production, he pointed out the immense potential for exports, especially in sectors such as electronic vehicles, auto components, and telecommunications equipment, where Tamil Nadu in India has already established a strong presence. By tapping into these sectors and leveraging modern production methods, Sri Lanka can enhance its position in the global value chains and stimulate economic growth.

A Change in Mindset:

The MP called for a fundamental shift in the country’s mindset and highlighted the necessity of a social market economy model to achieve social and economic justice. He underscored the importance of transparency and the avoidance of false promises, urging a focus on the core issues.

The Role of Elections and Continuity in Development:

In the pursuit of a sustainable development agenda with expansive reforms, MP Harsha de Silva emphasized the importance of elections and people’s mandate. He dismissed the idea of focusing on personalities and emphasized the need for a consistent development roadmap, independent of the ruling party.

Leveraging Opportunities with India:

The MP rejected the notion that building bridges with India would be disadvantageous to Sri Lanka and pointed to the opportunities arising from South India’s rapid growth. He cited Tamil Nadu’s success in becoming the ‘Detroit of Asia’ and highlighted the potential for energy export from Mannar to India, similar to Bhutan’s hydro-dam exports.

MP Harsha de Silva’s press conference provided valuable insights into the challenges and opportunities facing Sri Lanka’s economy. Emphasizing the significance of a social market economy model, regional trade agreements, and continuity in development policies, he advocated for an inclusive and sustainable path to economic growth. By understanding the core problems and making educated decisions, Sri Lanka can achieve its goal of becoming an advanced economy by 2048.

Minister of Foreign Affairs of Japan, HAYASHI Yoshimasa will undertake an official visit to Sri Lanka from 28-29 July 2023.

During the visit, the Japanese Foreign Minister is scheduled to have official discussions with Minister of Foreign Affairs Ali Sabry at the Ministry and pay courtesy calls on President Ranil Wickremesinghe and Prime Minister Dinesh Gunawardena.

Minister of Foreign Affairs of Japan HAYASHI Yoshimasa will be accompanied by Senior Foreign Policy Coordinator MURAKAMI Manabu, Director General Southeast and Southwest Asian Affairs ARIMA Yutaka, Director General International Cooperation ENDO Kazuya, Deputy Press Secretary OKANO Yukiko from the Ministry of Foreign Affairs, Japan and a 22 – member delegation consisting of officials of the Ministry of Foreign Affairs of Japan.

The delegation will also visit one of the Japanese Official Development Assistance (ODA) sites in Sri Lanka.

Ministry of Foreign Affairs
Colombo

26 July 2023

The Ministry of Foreign Affairs unreservedly rejects the reference to a Tamil Genocide Remembrance Day in the statement issued on 23 July 2023 by the Canadian Prime Minister Justin Trudeau.

Canada’s continued reference to a false, distorted narrative of the past conflict in Sri Lanka is aimed solely at achieving local vote-bank electoral gains, and is not conducive to broader goals of communal harmony.

Sri Lanka urges Canada and its leaders to support Sri Lanka in its efforts to ensure stability, progress, peace and reconciliation among all communities in all parts of Sri Lanka, as well as among communities of Sri Lankan heritage overseas.

Ministry of Foreign Affairs

Colombo

25 July 2023

COLOMBO, 24TH JULY 2023: Newly appointed United Nations Resident Coordinator in Sri Lanka, Mr. Marc-André Franche, presented his Letter of Credence to H.E. President Ranil Wickremesinghe on the afternoon of Monday, 24 July.

Mr. Franche expressed his appreciation to President Wickremesinghe for the longstanding partnership between the United Nations and Sri Lanka. He also reaffirmed the commitment of the UN Country Team to continue working together with the Government and people of Sri Lanka towards the achievement of the 2030 Agenda for Sustainable Development.

Recognizing the challenges of the current situation and pressures on the Sri Lankan people, Mr. Franche welcomed the progress that has been made towards stabilizing the economy. Further to the United Nations and its partners supporting the public health response to the COVID-19 pandemic and humanitarian assistance reaching over 3.1 million people during the height of the crisis, he assured that the UN would remain committed to working alongside the Government for an inclusive and sustainable economic recovery, with a particular emphasis on the most vulnerable.

Mr. Franche and President Wickremasinghe further discussed the national commitments of Sri Lanka on the climate agenda as well as the continued efforts aimed at reconciliation, human rights and development initiatives that help improve the livelihoods and wellbeing of communities, including in the Northern and Eastern provinces.

The United Nations Secretary-General Antonio Guterres appointed Mr. Franche as the United Nations Resident Coordinator, with the concurrence from the Government of Sri Lanka, on 8 July, 2023.

Following the United Nations Development System Reform in 2019, the Resident Coordinator serves as the representative of the UN Secretary-General for development activities and the highest-ranking official of the UN system at the country level.

Mr. Franche leads a UN Country Team of 21 resident and non-resident entities dedicated to supporting the achievement of the Sustainable Development Goals. The contributions of the UN in Sri Lanka are guided by the United Nations Sustainable Development Cooperation Framework 2023-2027, signed with the Government in August 2022. It is mutually owned and anchored in national development priorities, the 2030 Agenda and the principles of human rights.

Mr. Franche brings to the position over 24 years of experience in international cooperation with the United Nations. Prior to his appointment as the UN Resident Coordinator in Sri Lanka, he was the Resident Representative of the UN Development Programme (UNDP) in Libya promoting better governance, local peacebuilding and sustainable growth and Chief of the UN Secretary General’s Peacebuilding Fund, supporting over 45 countries worldwide investing in innovative solutions to sustaining peace. He has also served as the Country Director for UNDP in Pakistan between from 2013 to 2016, Deputy Director of UNDP in Haiti from 2008 to 2012, and has prior to that worked for the United Nations in New York, Colombia, and Bolivia.

Kalinga De Silva, the Founder and Managing Director of Centrum Marine Consultancy, revealed ambitious projections for Sri Lanka’s seafarers’ remittances, stating that the current USD 400 million generated annually could triple by 2026 with more opportunities in the maritime sector. Speaking at the inauguration of the company’s new headquarters, “Centrum Haus” in Colombo 03, De Silva emphasized the need to capitalize on the global demand for seafarers.

Despite a worldwide shortage of approximately 147,000 seafarers over the next two years, Sri Lanka only has around 16,000 professionals in the field. De Silva urged the country to take immediate steps to increase this number and tap into the burgeoning demand. By fulfilling a share percentage of the global demand, Sri Lanka could attract remittances worth USD 1.5 billion to two billion in the next three years.

However, De Silva acknowledged several challenges hindering the growth of the profession in Sri Lanka. Issues include logistical constraints, a lack of awareness among the youth about maritime careers, and cultural biases that undervalue the role of seafarers. Despite these hurdles, Sri Lanka has earned a reputation as a reliable source of skilled seafarers, thanks to its robust infrastructure in maritime education and training.

De Silva highlighted the significant advantage of a seafaring career, noting that individuals can start earning around USD 500 in just one year after completing an 8-month training course and a 4-month waiting period. Comparatively, other professions like medicine require much more time and investment to reach similar earning levels.

Minister of Shipping and Aviation, Nimal Siripala de Silva, who graced the event as the chief guest, acknowledged the potential of grooming seafarers but pointed out logistical challenges. He mentioned that while government institutions like Mahapola have produced around 500 trained seafarers, they face hurdles in providing practical onboard training due to the lack of ships in Sri Lanka. To address this, the government is actively seeking partnerships and investments to advance the local shipping industry and cater to modern ship demands, including alternative fuels and other services.

During a recent Cabinet decision announcement press conference at the Government Information Department, Dr. Bandula Gunawardhana, the Cabinet Spokesman and Minister of Transport, Highways, and Mass Media, emphasized the urgent need for a comprehensive overhaul of the Railways Department in terms of its structure, quality, and quantity. The Minister envisions transforming the railway service into the most beneficial, convenient, and developed mode of transportation in the future.

To address the pressing issues within the Railways Department, the Cabinet of Ministers approved the formation of a committee tasked with proposing appropriate solutions for the department’s restructuring.

In his address, Minister Gunawardhana expressed concern over the discomfort faced by thousands of commuters due to minor issues, emphasizing that the railways play a crucial role as the primary means of public transport for both public and private sector workers. The persistent strikes have led to inconveniences, and there has been growing public sentiment favoring the privatization of the railways.

The Minister highlighted his efforts to engage with all Railway Unions and encouraged resolving problems through consensus at various levels, from the institution to the ministry and government.

Amidst these challenges, there is a positive development with the introduction of a new tourist train to Jaffna in August and planned renovation work on the railway line from Anuradhapura to Mahawa, set to commence in January 2024.

Addressing issues of fraud, theft, and corruption within the department, Minister Gunawardhana informed the Criminal Investigation Department about irregularities committed by individuals claiming to be leaders of certain trade unions in the Railway Department. A comprehensive national-level criminal investigation is underway, focusing on crimes related to railway tracks theft, obtaining foreign contracts, and the illegal acquisition of contractors’ checks. The scale of these offenses demands stringent action against those involved in corrupt activities.

The Minister firmly asserted that combating corruption is a top priority in the pursuit of a revitalized and efficient railway system for the benefit of all Sri Lankans.

In a recent meeting with BIMSTEC Secretary-General, Tenzin Lekphell, President Ranil Wickremesinghe emphasized the continued need for cooperation among member states and underscored the significance of further advancing the public health sector in the region.

The Secretary-General commended Sri Lanka for its unwavering commitment to public health and urged the country to take a leading role in this vital field within the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). BIMSTEC comprises seven South and Southeast Asian nations – Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand – with the shared goal of fostering collaboration in technical and economic realms among countries along the Bay of Bengal, bridging South Asia and Southeast Asia.

President Wickremesinghe stressed the importance of holding regular Ministerial level meetings among BIMSTEC members to ensure the organization’s success and effective collaboration in achieving their collective objectives.

The meeting also saw the participation of Dinouk Colombage, the President’s Director of International Affairs, further reinforcing Sri Lanka’s commitment to regional cooperation and development.

The Embassy of Sri Lanka in Brussels, in collaboration with the Sri Lanka Export Development Board (EDB), organized an online briefing session on the EU Strategy for Sustainable and Circular Textiles on  20July 2023.

The event aimed to enlighten stakeholders within Sri Lanka’s apparel industry about the European Union’s progressive approach towards sustainable and circular textiles. The briefing session was conducted by a senior expert, Mikael Garellick, at the Textile Unit of the Directorate General of the International Market of the European Commission.

The virtual event brought together key players from Sri Lanka’s apparel sector, including the Sri Lanka Joint Apparel Association Forum (SLJAAF), government representatives, and industry experts, to foster meaningful discussions about the future of textiles in the context of environmental sustainability.

The EU Strategy on Sustainable and Circular Textiles, introduced by the European Commission, is a crucial initiative to promote sustainability in the fashion and textile industries. It encourages eco-friendly practices and aims to reduce the environmental footprint of textiles throughout their lifecycle. Given that the EU is a significant trading partner for Sri Lanka’s textile exports, understanding and aligning with this strategy holds great significance for the country’s apparel sector.

During the briefing session, Mikael Garellick from the European Commission provided in-depth insights into the EU’s approach to sustainable and circular textiles. He highlighted the policies, standards, and potential collaborations that can aid Sri Lanka’s apparel industry in its pursuit of eco-friendly and sustainable practices. Participants had the opportunity to engage in a Q&A session, discussing specific challenges and opportunities relevant to the industry’s transformation to sustainable practices.

The Ambassador of Sri Lanka to Belgium and the European Union, Grace Asirwatham, emphasized the paramount importance of Sri Lanka’s apparel industry’s transformation to sustainable practices, aligning it with the EU Strategy on Sustainable and Circular Textiles to harness significant market benefits in the EU in the future.

Acting Director General of the EDB, Malani Baddegama, explained that Sri Lanka’s major export to the EU is apparel items and the benefits that it enjoys under the GSP Plus scheme. She further acknowledged the significance of such briefings and thanked the European Commission official for the insightful briefing.

Embassy of Sri Lanka