The European Union (EU) launched a EUR 8 million (Rs. 1.3 billion) project that will help Sri Lanka increase its trade competitiveness in regional and European markets.
The project will be implemented over a period of four years by the International Trade Centre (ITC) and United Nations Industrial Development Organization (UNIDO) in collaboration with the Department of Commerce.
“Trade is a key factor in stimulating the economic development. This project has been jointly designed with the Government of Sri Lanka, and brings together policymakers, government agencies, business leaders, chambers of commerce and apex organizations with the aim of improving competitiveness gaps and expanding international trade,” Ambassador and Head of Delegation of the European Union to Sri Lanka and the Maldives, Tung-Lai Margue said.
The Commissioner for International Cooperation and Development Neven Mimica and Minister of Finance Ravi Karunanayake signed the Financing Agreement for the project on March 16.
“I am pleased to witness the initial EU funding breakthrough that I originally announced in January last year after meeting the delegation from ITC led by Geneva Asia and the Pacific Chief Officer Xuejun Jiang in Colombo, becoming a reality,” Minister of Industry and Commerce, Rishad Bathiudeen said.
“Our government hopes to expand global trade by entering into many new and powerful Free Trade Agreements while positioning SMEs, exports and value chains to become growth drivers in their economic development roadmap and in such a context of major transition, this EUR 8 million project is a timely intervention that catalyses Sri Lanka’s accelerated journey towards the upper ranges in global middle income ranks,” he said.
The project will help Sri Lanka integrate WTO policies and regulatory reforms to make the most of the potential opportunities from the EU GSP Plus scheme and greater regional integration.
It will also address compliance standards and efficiencies in cross border procedures, which are key constraints to market access, especially for small and medium businesses. Specific attention will be given to enhancing value chains in the spice, food and IT Business Process Outsourcing sectors.
Director of Country Programs at ITC, Ashish Shah said, “Over 80% of the businesses in Sri Lanka are SMEs, representing 35% of total employment. Strengthening the export capacities of SMEs in sectors with high potential for job creation is therefore a critical contribution to ensuring inclusive growth in Sri Lanka.”
“Through this we will unlock Sri Lankan SMEs’ trade competitiveness and help them reap the benefits of participation in international trade,” he said.
UNIDO will support Sri Lanka’s efforts to integrate into the regional and multilateral trading system through a quality program aimed at the food and spices sectors’ productive chains.
A steering committee, co-chaired by the Ministry of Policy Planning and Economic Affairs and the Delegation of the European Union, will provide overall direction to the project. Competent national level agencies and apex business entities will support work-plan development and implementation of activities. - SJ