Germany steps up economic relations with Sri Lanka

Tuesday, 16 June 2020 00:50 - - {{hitsCtrl.values.hits}}

German Industry and Commerce in Sri Lanka

Chief Delegate Andreas Hergenrother

By Charumini de Silva

The delegation of German Industry and Commerce in Sri Lanka (AHK) yesterday said that economic engagement between Sri Lanka and Germany has improved significantly over the past few years and has a huge potential to strengthen it further.

“Germany has played a significant role in business development in Sri Lanka over the past two years,” AHK Sri Lanka Chief Delegate Andreas Hergenroether told journalists on Friday.

He noted that the German businesses already established in Sri Lanka have drawn considerable attention to and generated economic returns, and insisted on strengthening further the relationship between the countries. “In 2019, bilateral trade between the two countries topped EUR 1.7 billion with exports from Sri Lanka to Germany reaching EUR 755 million and exports from Germany to Sri Lanka, EUR 317 million. For years already, Germany has recorded a trade deficit with Sri Lanka. In 2019, Sri Lanka recorded a positive trade balance of EUR 438 million,” he pointed out.

He highlighted that there is huge potential to further strengthen bilateral trade ties.

Noting that for years Sri Lanka’s exports to Germany have been worth about twice as much as its imports from Germany, Hergenroether said Germany is Sri Lanka’s third most important export market behind the US and the UK.

Sri Lanka’s main exports to Germany include food, apparel, rubber-based products, and coconut-based products, while Germany’s main exports to Sri Lanka are machinery, electrical goods, chemical products and motor vehicles.

The 51 German companies that have invested in Sri Lanka created over 12,000 jobs for the local population. He pointed out that frequent engagement with the business community was a great opportunity to have a deeper understanding to increase trade.

He also stressed that the COVID-19 pandemic has posed multiple challenges to the business community, where investors are cancelling or postponing some of the planned investments.

Despite the challenging times, AHK Sri Lanka has continued to interact with and strengthen the relationship between business communities.

“There are ongoing discussions on new investment opportunities in the medical, energy and chemical sectors,” Hergenroether said.

Pic by Lasantha Kumara