New CCC Business Council to consolidate US-SL trade

From left: Foreign Affairs Deputy Minister Dr. Harsha De Silva, The Ceylon Chamber of Commerce Chairman Samantha Ranatunga, US Ambassador Atul Keshap, Ceylon Chamber of Commerce Chief Executive Officer Dhara Wijayatilake, Sri Lanka - USA Business Council President Samantha Rajapaksa - Pic by Ruwan Walpola 

The Government’s initiatives towards boosting trade relations with the West took another step forward on Tuesday evening, as the Ceylon Chamber of Commerce (CCC) inaugurated their Sri Lanka-USA Business Council and the Members forum of the CCC Business Council.

Since the new unity government rode into power on 8 January 2015, Sri Lanka’s trade ties with the West, and most notably the US, have improved considerably. While the US was a key export destination for Sri Lanka even before then, accounting for 26.7% of SL exports by 2015 with bilateral trade growing by 32% from 2011-2015, 2015 alone saw SL trade to the US totalling an estimated $ 3 billion as part of 7% year-on-year growth.

It is with the enhancement of this relationship in mind that the CCC sought to form the Sri Lanka-USA Business Council. Bilateral business councils function as an integral part of the CCC and their main objectives include the promotion of exports and the facilitation of investment and tourism between countries. 21 business councils have thus far been established and are functioning under the CCC, with the SL-US council the 22nd.

“US-Sri Lanka relations really are at an all-time high,” noted US Ambassador to Sri Lanka Atul Keshap. “When I say that what I mean is, not only is this an opportune moment for the launch of the Sri Lanka-US Business Council, but it is also indicative and very much reflective of the choices that the Sri Lankan people made in the elections – free and fair and democratic elections – that took place in January and August of 2015.”

Deputy Foreign Minister Harsha De Silva echoed Keshap’s thoughts, reflecting on the work put in by the unity government on improving bilateral relations with the US.

“Manifesting this spirit of friendship and support has been a steady stream of high level bilateral visits and engagement since the unity government of President Sirisena and PM Wickremesinghe ushered in a new era of development both economic and social together with a process of reconciliation and justice and dignity for all.

“This government is fully committed in creating a society that treats every individual the same way.”

New leadership

De Silva was also keen to continue on the same trajectory going forward despite the recent change in US leadership which saw right-wing candidate Donald Trump elected as President.

“The Government of Sri Lanka welcomes the new leadership of the US and we look forward in earnest to build on the excellent platform that we have created over the last two years of our close engagement and cooperation with the US. A close bilateral relationship and partnership will certainly underpin certain business initiatives,” he noted.

“We will continue to discuss with the US authorities the measures required for removing obstacles for enhancing trade and investment, which I hope in the new administration will not be any more than we’ve had thus far,” he added, seemingly alluding to underlying concerns about the foreign policy positions the new US regime will adopt in the months ahead.

US-SL Partnership Dialogue

The Sri Lankan government however will be hoping that the recently penned US-SL Partnership Dialogue will alleviate some of these concerns. 

“The US-SL partnership dialogue that US Secretary of State John Kerry and Foreign Minister Mangala Samaraweera initiated in February this year will serve as a regular consultative mechanism that will address all issues of mutual concern. And hence forth our two nations will meet at high level annually to discuss and chart practical measures to take our relationship to new heights step by step.” 

“I don’t know if in those discussions there would be possibilities for the chamber and others to participate, if not I think we should work towards achieving that,” he added, addressing the US Ambassador directly.

“Once every year when we meet, on the table will be all matters that we need to discuss between the two countries. This high level platform aims at linking and coordinating all parallel efforts in economic and business cooperation between the two countries. This includes those undertaken by the Trade and Investment Framework Agreement (TIFA) council, USAID, Millennium Challenge Corporation, and several other institutional initiatives of the US agencies involved in economic issues as well as those involved in the US agriculture and multilateral financial institutions, where the US enjoys crucial leverage.”

Trade and Investment Framework 

Agreement (TIFA)

Trade and Investment Framework Agreement (TIFA), signed between the US and Sri Lanka in 2002, provides a platform for strategic framework and principles for dialogue on trade and investment issues between the two countries. De Silva believes the outcome of the TIFA discussions held in Colombo earlier this year have highlighted the importance of promoting greater business interaction between the private sector of the USA and Sri Lankan businesses.

“Soon after the inauguration of the partnership dialogue, the TIFA council met in Washington. At the successful conclusion of the TIFA meetings including the recent inter-sessional meeting in Sri Lanka, the US-Sri Lanka joint action plan to increase trade and investment was adopted,” he explained.

“The plan will end up reaching its objectives over a span of five years, and a detailed implementation plan has now been developed to address several issues of importance to Sri Lanka for improving export competitiveness. 

“Among the other ambitious measures we intend to work on together with the US include greater utilisation of US tariff preference arrangements, involved in possible mechanisms to obtain preferential market access for competitive Sri Lankan products and services, building capacities to export food items to the US, and most importantly mobilising support for Sri Lanka’s goal to serve as a regional service and financial hub.”