Australian High Commissioner in Sri Lanka H.E. Paul Stephens and his team met Mr. Mangala Wijesinghe, Chairman/Chief Executive Officer of EDB to strengthen bilateral trade relations between Australia and Sri Lanka.
Sri Lanka and Australia bilateral relationship has vastly expanded over the past 75 years, 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 is the 11th largest export destination for Sri Lanka with total exports of USD USD 226.51 Mn in 2023 and the 24th import origin with total imports of USD 185.89 Mn in 2023 with the trade favorable trade balance for Sri Lanka around USD 40 Mn.
Chairman Mr. Wijesinghe explained the vision of new government related to the export development and emphasized the importance of partnering in the area of Foreign Direct Investment (FDI). Mr. Wijesinghe emphasized the new government intention on the expediting approval process of FDIs to facilitate the investors.
Further, he mentioned that Sri Lanka needs to follow the global trends in manufacturing in order to become a part of global supply chains. For Sri Lanka to connect with global supply chains, it is essential to join hands and promote bilateral trade with Australian counterparts as well he said.
H. E. 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 have a strong trade relationship that includes a framework arrangement, and development cooperation. The Australia-Sri Lanka Trade and Investment Framework Arrangement (TIFA) advances economic cooperation between Australia and Sri Lanka. The TIFA action plan includes government to government collaborations in multiple sectors such as facilitating quarantine process for agricultural exports, investment promotion programs, market access for SME exports, attracting high-end tourists and partnerships for greater use of digital technology.
Major exports to Australia in 2023 were recorded as apparel, tea, rubber tyres & tubes, rubber gloves, motor vehicles & parts, and edible preparations etc. and the main import products were lentils, cereals, meat preparations, dairy produce pharmaceuticals and paints etc.
EDB has identified potential products to Australia as apparel, tea & mate, plastics & rubber products, fish & shellfish, paper products etc.
Both countries anticipate to reach new heights in bilateral trade relations in terms of continuing productive dialogues for new business opportunities, proactive engagements with business communities in both countries while encouraging and facilitating trade and investment, transferring modern technology and by resolving trade and investment related issues to create a conducive business environment.
Ms. Lalita Kapur – Australian Deputy High Commissioner, Dr. Paul Zeccola – First Secretary, Mr. Shameel Javadh - Country Manager of Austrade, Ms. Saduni Seneviratne - Director Education of Austrade and senior EDB Officials also participated at the discussion.
