Call for stronger business ties between Iraq and Sri Lanka

By Shezna Shums

A six member high powered trade delegation from the Iraqi Federation of Chambers of Commerce visited the Ceylon Chamber of Commerce yesterday with the purpose of improving trade between the two countries

The delegation is to discus business opportunities as well as meet with companies to find out about Sri Lankan products and services for Iraq that will add value to the development of Iraqi and Sri Lankan economies at this crucial time of growth of the two countries.

The Memorandum of Understanding (MOU) for 2010 signed between the Ceylon Chamber of Commerce and the Federation of Iraqi Chambers of Commerce, was ceremoniously exchanged at the Business Councils’ Members forum last Wednesday.

CCC Past Chairman Mahen Dayananda said that the Chamber was ready and willing to act as a facilitator for such investment opportunities in Sri Lanka that the Iraqi people may require.

The Ceylon Chamber of Commerce intends to organise a trade and investment promotion mission to Iraq during the fourth quarter of this year, in a move to improve trade between the two countries.

Dayananda further added that the bilateral trade between Sri Lanka and Iraq has been growing during the last three years, although the trade balance has been in favour of Sri Lanka, the increase in the volume of trade and the widening of the products traded between the two countries are heartening and augur well for the people of the two countries.

Sri Lanka has now firmly established itself as one of the most rapidly developing countries in the region and many nations are eager to promote trade and investment with Sri Lanka. Since the end of the conflict in Sri Lanka, the Iraqi business community has vigorously accepted our invitation to explore opportunities for expansion of investment and trade opportunities in Sri Lanka.

There are opportunities for the Sri Lankan business community to supply intermediate goods for industries such as construction, hospitality, plantation and garments in Iraq. Sri Lankans could also offer consultancy and professional services in the field of education, healthcare, engineering, architecture, construction, hotel management and business management.

The export market for consumable products such as confectionary, tea and herbal drinks, cosmetics, rubber products, gems and jewellery is also growing as a result of the rising purchasing power of the Iraqi people.

These are opportunities to be exploited by the Sri Lankan business community.

Dayananda also highlighted that with the opening of the North and East there is new business opportunities coming up for more trade to take place.

Kahtan Taha Khallaf Kali Ambassador for Iraq in Sri Lanka in his address said that Sri Lanka and Iraq have a long history and that Ceylon tea was very popular in Iraq; but the political changes saw the demise of Ceylon tea in the country along with a decline of Sri Lankan business in Iraq.

The Ambassador said that following the opening of an Iraqi Embassy in Sri Lanka in 2006, the Iraqi government has constantly worked towards rebuilding this relationship for both the Sri Lankan and Iraqi people to benefit from improved trade and business.

He noted that at the moment Iraq produced three million barrels of oil a day, but by 2016 Iraq hoped to increase this figure to 11 million barrels a day.

“With this, will come a lot of revenue and the Iraqi people and government will want to improve their lives and we will look for countries and companies to come to Iraq to invest and help us rebuild the country; we will also require people to come and help in our rebuilding efforts,” explained the Ambassador.

With the increased population there is also a huge demand for things and we hope that Sri Lanka will use this opportunity to improve trade between Iraq and Sri Lanka.

Abdul Hussein J. R. Mubaraka, General Secretary, Federation of Iraqi Chamber of Commerce noted that years ago Sri Lanka used to send to Iraq US $ 12 million worth of tea and US $ one million worth of rubber and that now these trades have ceased.

He quipped “Despite our long history of friendship we are surprised that Sri Lanka is not active in trade and its presence is not felt in Iraq now; especially during the time of our country’s development.” He went on to say that although countries like China were making a huge impact with their presence in Iraq, and Indian and Chinese tea was in the Iraqi market — but not Ceylon tea.

Mubaraka also suggested that a trading centre be opened in Iraq for the Iraqi people to know what Sri Lanka had to offer, as Ceylon tea was highly popular in the country years ago.  He said there were many things that Sri Lanka could offer to the Iraqi people.

M. Faizal, Director Investments and Promotions, Middle East, Board of Investment stated that Iraq was one of the first Arab countries to open an Embassy in Sri Lanka over 40 years ago.

“With our long history it will be easy for both countries to re activate this relationship, by improving exports and trade. Some of the items that Sri Lanka can export to Iraq are tea, rubber, apparel, textile, ceramics, tableware, glass ware, gems and jewellery.

Other areas that may benefit the Iraqi people is Sri Lanka’s healthcare, education, leisure hotels and resorts and other services.

Upali Kahandawa, Deputy Director-Promotions, Sri Lanka Tea Board recommended to the Iraqi delegation that they contact Sri Lankan exporters directly to benefit from the quality exports at reasonable prices in the case of tea and other items.

He recalled that during the 1980s about 15.6 percent of tea exports were sent to Iraq and that now Sri Lanka should look at re strengthening this age long friendship whereby both Sri Lanka and Iraq could benefit from business and trade opportunities.  

Such is a time when both Sri Lanka and Iraq are recovering and developing in this new era, and such trade agreements and business opportunities will greatly benefit both countries and their people.