Diplomatic relations between Canada and Sri Lanka date back to the 1950s. From its inception, the Canadian International Development Agency (CIDA) has been a development partner to Sri Lanka. Against this background, our bilateral relations have evolved and the projects such as Colombo International Airport, the Canada-Sri Lanka Friendship Road, the Hardy Technical Training Institute, the Maduru Oya Reservoir and the extension of Gal Oya transmission lines are testimony to this close relationship.
Sri Lanka’s strategic location between the East and the West, and its liberalized economic policies, including free-trade agreements with India and Pakistan, gives investors access to a sub-regional market with a population of more than 1.3 billion. In addition, Sri Lanka enjoys preferential market access to China and South Korea (under the Asia Pacific Trade Agreement) and to the EU, U.S. and Canada under respective tariff agreements.
To facilitate trade, Sri Lanka has reached agreements on the promotion and protection of investment and on avoidance of double taxation with most countries, including Canada.
In the aftermath of the defeat of terrorism in May 2009, Sri Lanka recorded an impressive GDP growth of eight percent in 2010 while maintaining 17 percent growth in its exports. Sri Lanka’s exports to Canada in 2010 recorded growth of 22.3 percent — from US$ 101.3 million in 2009 to US$123.9 million in 2010. Canada’s exports were up by 15.5 percent in 2010 from US$292.9 million in 2009 to US$ 338.5 million in 2010. Canada has become the single largest supplier of wheat to Sri Lanka while apparel and clothing accounted to 53 percent of Sri Lanka’s exports to Canada. Solid and pneumatic tires, rubber-based products, auto industrial components, coconut fibre products, tea and spices are among Sri Lanka’s exports to Canada.
Sri Lanka supplies world-renowned designer labels: among them, Marks & Spencer, NEXT, Victoria’s Secret’s PINK, Gap, Levis, Triumph, Reebok and Tommy Hilfiger. Sri Lanka is a producer of “Garments without Guilt” and is home to the first among seven manufacturing facilities in the world to be awarded the LEED platinum rating, setting a global benchmark for green apparel factories.
Affectionately known as the Island of Gems, Sri Lanka boasts more than 70 varieties of gems. Among them, the worldrenowned blue sapphire, known as the Ceylon Sapphire, takes pride of place due to its colour, clarity and lustre. Although the origin of the sapphire in Princess Diana’s engagement ring — later worn by Duchess Kate Middleton — is a well-guarded secret, the Sri Lanka Gem and Jewellery Association claims it did come from Sri Lanka 35 years ago. Other famous stones from Sri Lanka include the British Royal Jewel (a 105-carat chrysoberyl cat’s eye), the Blue Giant of the Orient, the Queen Mary of Romania Sapphire and the Rosser Reeves Star Ruby. The Star of Lanka, a 193-carat sapphire, is displayed at the Royal Ontario Museum in Toronto. Today, Sri Lanka is fast emerging as a design centre, offering high-quality hallmarked silver, gold and platinum jewellery collections.
Sri Lanka is the third-largest exporter of orthodox black tea. Ceylon Tea, one of the finest black teas, is also the world’s first to achieve the status of “ozone-friendly tea.” Recognized under the Montreal Protocol, Ceylon Tea adheres to ISO 3720, the international quality standards set for producers and packagers of black tea. The tea market in Canada continues to grow; Sri Lanka’s tea exports to Canada have increased by 14 percent in 2010 compared to 2009 (January-September).
Sri Lanka has abundant tourist attractions, which have made tourism a booming industry with more than 45 percent growth last year over the previous year. The agreement signed this year between Air Canada and SriLankan Airlines provides connections from Europe and Asia to major cities in Canada.
As for Canadian investment opportunities, key among them are infrastructure projects, including housing, hospitals, roads, public transport, property development and power-sector projects including solar power.
I invite visitors to the Sri Lanka Expo 2012 International Trade Fair, March 28- 30, 2012, in Colombo. The trade fair will provide a forum to explore opportunities in the areas of trade, investment and tourism. Participants will be offered three nights free in reputable hotels.
With a 92 percent literacy rate and many skilled workers, Sri Lanka is an emerging economy in a land of many untapped opportunities. Sri Lanka welcomes Canadian entrepreneurs.
