The EU- Sri Lanka Working Group on Trade and Economic Cooperation was held on 25 th April 2023 virtually with the participation of high level delegates from the two sides.
The Session was Co-Chaired by Ms. Dora Correia, Director (trade relations with Africa, Caribbean and Pacific regions, South and South-East Asia, Australia and New Zealand, Trade and Sustainable Development, the Green Deal) of the Directorate General for Trade of the European Commission from the EU side and Mr. A.M.P.M.B. Atapattu, Secretary, Ministry of Trade, Commerce and Food Security from the Sri Lanka side. H.E. Mrs.Grace Asirwatham, the Sri Lanka Ambassador to Belgium and Brussels, and the EU Delegation in Colombo also attended the Session. The two sides engaged in productive deliberations to enhance bilateral trade ties between the EU and Sri Lanka.
Among the matters discussed were; economic and trade policy developments, bilateral market access issues, new GSP Regulation for 2024-2034 and trade related assistance. During the Working Group meeting, the Sri Lanka side highlighted the key policy interventions made to achieve economic stability in the country with the Extended Fund Facility of the International Monetary Fund and the related developments. It was envisaged that the economy would enter into a recovery path with the concerted efforts made by the Government.
The EU side acknowledged the progress made by Sri Lanka towards economic stability and attempts made to expand trade with the EU, and requested further cooperation and engagement in reviewing policy directives. The EU side also highlighted the features of the new GSP Scheme which will come into effect from the year 2024. Sri Lanka is an applicant to the GSP Plus facility under the new Scheme which will enable Sri Lankan exporters to export more than 7000 products under zero duty to EU member countries for the next ten years.
Currently, the EU is the second largest export market for Sri Lanka with a value of US$ 3 Billion in the year 2022. Apparel exports dominate the export basket with a 54% share of exports in 2022. The other key export products are pneumatic tyres, tea, articles of apparel, tobacco and liquid coconut milk.
The two sides also discussed number of other areas for potential cooperation including technical assistance for trade facilitation, resolution of market access issues pertaining to certifications and quarantine issues, market access opportunities to diversify export markets and products and opportunities under EU Green Deal. Both Parties endorsed the importance of continuing productive dialogues in the future in resolving trade related issues and creating conducive environment to strengthen bilateral economic relations in the future.
