Sri Lanka and Rwanda explore future cooperation

Rwanda High Commissioner Ernest Rwamucyo addresses the forum whilst Ceylon Chamber of Commerce CEO / Secretary General Mangala Yapa (centre) and and Consul General for Rwanda in Sri Lanka J.C. Alles are also present - Pic by Upul Abayasekara

By Inshira Shainaz

The High Commissioner of Rwanda to India, Ernest Rwamucyo, together with the Ceylon Chamber of Commerce, held the Sri Lanka-Rwanda Business Forum at the Ceylon Chamber of Commerce on 28 May.

Rwanda High Commission Counsellor Emile Mwepesi and Consul General for Rwanda in Sri Lanka J.C. Alles were also present at the occasion. The event highlighted potential areas for future collaboration for joint ventures to be set up in Rwanda for sectors such as agriculture, the processing of agro products, power and energy, dairy production, pharmaceuticals, construction, healthcare services, tourism and IT/BPO.

The Ceylon Chamber of Commerce Secretary General/CEO Mangala Yapa stated that the Government of Sri Lanka and the Republic of Rwanda needed to develop economic partnerships between the two nations. 

He went on to add that Sri Lanka’s economic ties with Africa had gone beyond trade to tourism. He also asserted that persistent efforts needed to be taken, both at the government and private sector level, for comprehensive engagement so that Sri Lanka and Africa could be marketed together as partners in progress.

“Trade between Sri Lanka and Rwanda is very marginal. According to the latest statistics available, total exports from Sri Lanka to Rwanda only amount to $ 0.34 million and no imports to Sri Lanka from Rwanda in 2014,” he added.

Rwandan investors were invited to partner the private sector in Sri Lanka and invest in Government projects. Against this backdrop, investing in Sri Lanka to re-export is a promising option for investors from Rwanda. 

Preferential tariffs are granted for agreed products under several promising bilateral and multilateral agreements such as the India-Sri Lanka Free Trade Agreement and the Pakistan-Sri Lanka Free Trade Agreement and also under the Global System of Trade Preferences.

The Free Trade Agreements with Pakistan and India have opened gateways to a South Asian market of over 1.2 billion people which can be the gateway to the largest emerging markets in the world.

“We have initiated discussions on a FTA with China, which we are hopeful will be concluded within 2015. The Government of Sri Lanka is also looking at the possibility of initiating a dialogue with Japan to consider having a preferential trade agreement shortly.”

Sri Lanka’s foreign policy platform is built mainly through its historical and cultural affinities with the rest of the world. Sri Lanka’s relations with African nations date back centuries. In the recent history, Sri Lanka’s relations with Africa are distinctive and owe their origin to the common path that Sri Lanka and African nations had to share in the past, witnessing struggle against colonialism and poverty.

It is hoped that people-to-people contacts through business exchanges will enhance existing economic and trade relations. Sri Lanka explores the possibilities of enhancing bilateral trade and economic cooperation, diversifying products and encouraging public-private partnerships.

High Commissioner Rwamucyo stated: “There has been some interaction between Sri Lanka and Rwanda. We came to certify and build on that momentum. The aim of this forum is to create partnerships between the two private sectors.”  

Rwanda has seen an average of 8.8% year-on-year GDP growth since 2005 with a stable inflation and exchange rate. The three years’ GDP growth rate is one of the highest among major African economies and neighboring countries.

Rwamucyo said: “Sri Lanka and Rwanda have a growing friendship and I think it has to improve Government-to-Government interaction and there should be more people-to-people connections, which will be helpful for a faster transformation.”

He added that Rwanda was focusing on Agriculture, the Processing of Agro Products, Power and Energy, Dairy Production, Pharmaceuticals, Construction, Healthcare Services, Tourism, IT/BPO and improving its capital market.

Both countries expressed hope that people-to-people contacts through business exchanges would enhance existing economic and trade relations.