Empowerment through Trade and Investment

• Author: H.E. Jaliya Wickramasuriya, Ambassador of Sri Lanka
• Pages: 02

The ideas expressed in this article are solely those of Ambassador Wickramasuriya and do not reflect the ideas of the government of Sri Lanka.

Page 2

While Sri Lanka formally began trade with the U.S. 40 years ago in 1968, we have had informal trade relations with the U.S. for the last 200 years. Right now the U.S. is the main trading partner for exports from Sri Lanka. The main market is clothing, but precious gems, jewelry, tea, handicrafts, rubber and spices are some of our most popular exports and satisfy a large portion of our export capacity. It has been nearly six years since the U.S. and Sri Lanka sought to enforce the Sri Lanka Trade Pact, a bilateral trade agreement between the two countries. While efforts to effectuate this agreement were unsuccessful, I am certain that the U.S. can continue to have a major role in Sri Lanka’s transformation into an emerging global market through continuing to have great demand for our exports.

Most notably, Sri Lanka serves as a second home to several U.S. corporate entities, such as Gap, Banana Republic and Victoria’s Secret. The presence of these companies in Sri Lanka has helped to improve our manufacturing capacity. To date, Sri Lanka produces more than 50% of Victoria’s Secret’s production line and looks forward to improving its processes in order to increase efficiency and product quality. When the U.S. and Sri Lanka engage in this sort of international endeavor with a brand name company, more products can be exported and the brand name can be firmly established as a welcomed partner in our economy. We are in the process of identifying and inviting more companies to invest in our beautiful country.

Moreover, our partnerships with other Asian countries, like Pakistan, India and Bangladesh have helped to strengthen our economy, making it a more economically stable and attractive to investors. Our trade agreements with these countries allow us to offer many items duty-free, which greatly benefits many private companies, as well as the government. This trade structure has helped to facilitate foreign exchange and has provided a sustainable growth in many sectors. If we could duplicate this trade regime with the U.S., it would allow for a mutually beneficial partnership. We have also taken time to identify and develop some sectors that may be of particular interest to the U.S., such as agriculture, tourism, transportation, and the extractive industries. As such, we hope to garner the...