EU reaffirms support for economic growth with focus on anti-corruption and trade expansion

In a renewed commitment to support Sri Lanka’s economic recovery and trade expansion, the European Union (EU) Ambassador to Sri Lanka Carmen Moreno highlighted the EU’s dedication to fostering economic stability in the country during a recent meeting with the Export Development Board (EDB) Chairman Mangala Wijesinghe.

Accompanied by Deputy Head of Mission Lara Bredal, Moreno stressed the importance of anti-corruption and governance reforms to attract further EU investment.

She commended the Government’s recent initiatives to combat bribery and enhance anti-corruption institutions, noting that this focus on transparency is critical to gaining investor confidence.

Moreno also highlighted Sri Lanka’s steady advancements in anti-money laundering and counter-terrorism finance efforts, as well as its adherence to international environmental, labour and human rights standards — key considerations for foreign direct investments (FDIs) from the EU.

The EU was Sri Lanka’s 2nd largest export market in 2023 in terms of market regions, having accounted for over $ 2.71 billion merchandise exports. The common market is a major destination for Sri Lankan apparel, which has been instrumental in driving export growth and creating jobs within the country. 

Sri Lanka also benefits from enhanced market access to the EU under the GSP+ facility, which was reinstated in 2017, offering critical sustenance to the country’s economy. The mechanism of one-way trade preferences offers the full removal of duties on 66% of tariff lines on a variety of products.

The Delegation of the EU to Sri Lanka extended valuable technical assistance during the EDB’s endeavour to obtain Geographical Indication (GI) certification for Ceylon Cinnamon with the support of numerous public and private stakeholders. The National Export Strategy of Sri Lanka (NES 2018-2022) was formulated with funding from the “EU–Sri Lanka Trade-Related Assistance” project and technical support from the International Trade Centre (ITC), Geneva. 

Moreover, the four-year, EU-Sri Lanka Trade-Related Assistance project, which was concluded in 2021, assisted local SMEs to increase trade competitiveness within the EU and regional markets with special attention given to enhancing value chains in spices and concentrates, processed food and beverages, as well as IT/BPO.

In terms of promoting the IT/BPO sector by the EU-funded project, local SMEs entered eight new markets in Europe and Asia with the aid of the collective guidance and monitoring of the EDB and SLASSCOM. Over 300 business meetings facilitated connections, while 120 SMEs received targeted training and coaching to enhance export capabilities with the support of the International Trade Centre -a multilateral agency which works with the WTO and UN Trade and Development to promote global trade.

The meeting ended with the EU representatives and top officials of the premier State Export Promotion Agency agreeing to work in a spirit of mutual cooperation and understanding to deepen the trade integration between Sri Lanka and the influential Political and Economic Union of 27 member States. EDB Director General Champika Dharmasena and other senior officials too joined the discussion.

EDB Chief underscored that Sri Lanka’s attractiveness for FDI would increase with anticipated political stability and policy consistency following the upcoming General Election.