Building stronger UK-Sri Lanka partnership for the future
Source : FT
Whether it’s expanding trade under the DCTS, collaborating on climate action, or strengthening educational partnerships, the potential for growth in our relationship is immense
I was delighted to have made my first official visit to Sri Lanka following the recent formation of President Dissanayake’s Government. Although my first visit, I am no stranger to Sri Lankan hospitality, thanks to the Sri Lankan diaspora community in the United Kingdom. Their remarkable contributions to British public life exemplify the deep, people-to-people connections that form the foundations of our modern partnership, alongside our cultural, economic links.
The UK remains committed to supporting Sri Lanka’s reform agenda, particularly the Government’s commitment to the International Monetary Fund (IMF) program, which is crucial for long-term economic stability. I am pleased that the UK is supporting by providing technical assistance to Sri Lanka’s Inland Revenue Department to support them increase collection of vital revenue and supporting debt restructuring as a member of Sri Lanka’s Official Creditor Committee. Working together on eradicating corruption to widening educational access, successful reform will deliver economic growth – the single most important thing we can do to improve living standards.
Both our Governments are united in our commitment to driving this inclusive economic growth for both our nations. Trade is central to this mission, with UK-Sri Lanka trade amounting to £ 1.4 billion in 2023. It is our responsibility as Governments to support and improve the trading environment to allow businesses to thrive.
That is why I was delighted to welcome new trading initiatives on my visit. This includes launching new export procedure handbooks, helping Sri Lankan businesses better access the UK market through the Developing Countries Trading Scheme (DCTS). The UK is keen to improve utilisation of the DCTS scheme to further support Sri Lankan exporters and ensure important foreign exchange earnings.
The UK has ambitions to widen opportunities under DCTS with forward-looking initiatives such as the UK-funded SheTrades program which aims to increase the participation of women in trade by promoting opportunities for women-led businesses in Sri Lanka and supporting Sri Lanka’s Export Development Board (EDB) to promote inclusive trade policies and data.
Our relationship goes beyond our economic ties – the questions that most often come up in the British Parliament are about the legacy of the civil war. During my time in Sri Lanka, I discussed these issues with civil society groups, political leaders in the North and with the new Government. I welcome what the new Government and other groups said on these issues. This is another area where I look forward to working with Sri Lanka.
Education represents an important cornerstone of our partnership; and to building a fairer more united further for communities. Sri Lanka stands as the UK’s second-largest Transnational Education market, with 45 British universities offering degree programs to approximately 50,000 Sri Lankan students. I met with The British Council to explore how we can further strengthen this pillar of our partnership. This educational cooperation not only builds bridges between our nations but also helps develop the skills needed for tomorrow’s economy.
The UK is also at the forefront of addressing global challenges, particularly climate change. On my visit to Jaffna, I saw the only UK government-funded climate adaptation project which directly addresses groundwater depletion and its impact on agriculture and local communities. Groundwater, an essential resource for agriculture, livelihoods, and daily life, is facing growing threats.
In addition to our climate adaptation projects, the UK has also funded the World Bank’s Offshore Wind Roadmap for Sri Lanka, demonstrating our dedication to supporting renewable energy initiatives and the transition to net zero emissions. The UK welcomes the new Government’s ambitious vision for Sri Lanka’s energy sector and environment, where UK prosperity programs are providing support. Sri Lanka remains highly climate vulnerable and green growth should be a central feature of its economic recovery.
The Indo-Pacific region, with Sri Lanka at its crossroads, is the engine of global economic growth in the coming decades. As island nations dependent on maritime trade, both our countries understand the importance of maintaining a rules-based international order and ensuring maritime security.
Following this first official ministerial meeting of our two new governments I am optimistic about what we can achieve together. Whether it’s expanding trade under the DCTS, collaborating on climate action, or strengthening educational partnerships, the potential for growth in our relationship is immense. President Dissanayake’s Government has set out an ambitious agenda for reform and renewal, and the UK stands ready to support Sri Lanka on this journey. I am confident this visit is the first of many, as we work together to strengthen the bonds between our two island nations and build a prosperous shared future.
(The writer is UK Parliamentary Under-Secretary of State (Indo-Pacific).)