Australian High Commissioner to Sri Lanka Paul Stephens and his team met recently Export Development Board (EDB) Chairman and Chief Executive Mangala Wijesinghe to strengthen bilateral trade relations between the two countries.
Over the past 75 years, Sri Lanka and Australia bilateral relationship has vastly expanded over through deep people-to-people ties, trade and investment, tourism, culture and sports.
This relationship is strong and enduring, underpinned by shared history and common values. Trade and investment between two countries have been increasing over the time.
Australia ranks as the 11th largest export destination for Sri Lanka, with total exports amounting to $ 226.51 million in 2023. It also stands as the 24th largest source of imports for Sri Lanka, with total imports valued at $ 185.89 million during the same period. This results in a favourable trade balance for Sri Lanka of approximately $ 40 million.
Wijesinghe elaborated on the new Government’s vision for export development, highlighting the critical role of partnerships in fostering Foreign Direct Investment (FDI).
He emphasised the Government’s commitment to streamlining and expediting the approval process for FDIs to create a more investor-friendly environment.
Additionally, Wijesinghe underscored the necessity for Sri Lanka to align with global manufacturing trends to integrate into international supply chains.
He stressed the importance of enhancing bilateral trade relations with Australia as a key step toward achieving this goal and strengthening Sri Lanka’s position in the global market.
The High Commissioner explained the potential for Australia to invest in the Mineral Sector in Sri Lanka as well as joint ventures on export led manufacturing. Further he explained the interest of Australian companies to invest in Sri Lanka targeting export-led manufacturing and processing.
Especially, develop Sri Lanka as a commodity hub for the value adding of Australian agri commodities targeting export markets under the benefits of free/preferential trade agreements. Both parties agreed to discuss further on the possibility of implementation of this proposal.
Australia and Sri Lanka maintain a robust trade relationship underpinned by a framework arrangement and development cooperation.
The Australia-Sri Lanka Trade and Investment Framework Arrangement (TIFA) serves as a cornerstone for advancing economic collaboration between the two nations. The TIFA action plan focuses on key areas such as facilitating quarantine processes for agricultural exports, promoting investment programs, enhancing market access for SME exports, attracting high-end tourists, and fostering partnerships for broader adoption of digital technologies.
In 2023, Sri Lanka’s major exports to Australia included apparel, tea, rubber tires and tubes, rubber gloves, motor vehicles and parts, as well as edible preparations. Conversely, the primary imports from Australia consisted of lentils, cereals, meat preparations, dairy products, pharmaceuticals and paints.
The EDB has identified significant opportunities to expand exports to Australia in sectors such as apparel, tea and mate, plastics and rubber products, fish and shellfish and paper products.
Both nations are committed to strengthening bilateral trade ties by fostering productive dialogues, engaging proactively with business communities, encouraging and facilitating trade and investment, transferring modern technologies and resolving trade and investment-related challenges.
These efforts aim to create a conducive environment for business growth and unlock new opportunities for collaboration.
FT