From left: American Chamber of Commerce Sri Lanka President Asanka Ratnayake, US Ambassador Atul Keshap, Asia Pacific Council of American Chambers of Commerce Chairman Jackson Cox and American Chamber of Commerce Sri Lanka Executive Director Radika Obeyesekere

Our commitment to strengthening our economic partnership is long standing and has never wavered, says US Ambassador Atul Keshap 

The Annual General Meeting of the American Chamber of Commerce (AmCham) Sri Lanka was held recently with new US Ambassador Atul Keshap as the Chief Guest and Jackson Cox, Chairman of the Asia Pacific Council of American Chambers of Commerce, as Keynote Speaker. Asanka Ratnayake was re-elected for a second term as President of AmCham Sri Lanka.

Following is the full text of Ambassador Keshap’s speech at the AGM:

I’d like to begin by congratulating the newly elected and re-elected members and officers of the AmCham Board of Directors. You take office at a very propitious time. For nearly a quarter century, AmCham has worked diligently to cultivate trade and investment ties between Sri Lanka and the United States, and, thanks in part to its efforts, these ties are now firmly rooted. I am convinced we now have a golden opportunity to ensure that our bilateral business relations fully blossom. 

I don’t say this because of some change in US policy. Indeed, our commitment to strengthening our economic partnership is long standing and has never wavered. My confidence is fuelled by the remarkable changes that have taken place in Sri Lanka, changes ushered in by the voters of Sri Lanka in the January presidential election and ratified by the voters of Sri Lanka in the recent parliamentary elections. Today, we have a partnership with a Government that shares our commitment to boosting bilateral trade and investment. 

The people of this country elected President Sirisena and Prime Minister Wickremesinghe thanks to their promise to implement a reform agenda aimed at establishing transparent governance. Upon assuming office, they began taking steps to level the business playing field in ways that give renewed confidence to other foreign companies and investors looking to do business in Sri Lanka. We now look forward to real progress in important economic sectors, such as energy, transport and others, where US companies have put forward specific proposals to the Government. The successful advancement of any one of these proposals will help to send the right message to global players to look seriously at Sri Lanka, which can stimulate much needed Foreign Direct Investment to promote broad based economic growth. 

With the new Cabinet now in place, there is much expectation that the Government will quickly advance important reforms. That is because the Sri Lankan people delivered the same clear message on 17 August that they delivered in January – good governance is essential – and in the meetings I’ve had since the elections it is clear that President Sirisena and Prime Minister Wickremesinghe are also intent on responding to what they hear from the voters. 

US support

The US Government is also intent on assisting our Sri Lankan partners to carry out reforms aimed at making the country a more attractive place to do business, which will ultimately enable Sri Lanka to realise its enormous economic potential. Just last Thursday, the US Agency for International Development (USAID) finalised a $ 2 million award to carry out a 12-month project aimed at strengthening the Government’s management of public finances. 

This project, a key component of our overall strategy to support Sri Lanka’s anti-corruption efforts, recognises that transparent public finance practices benefit businesses – both domestic and foreign – and the nation as a whole. It aims to bolster, among other things, public procurement systems, internal and external audit capabilities, and Parliament’s policy and fiscal analysis in areas related to budget, procurement and public finance. 

Just this morning, the Embassy signed an agreement with the Sri Lankan Foreign Ministry for a $2.6 million program to boost cooperation on justice sector reform and capacity building on addressing complex crimes and advancing the rule of law. These are just two elements of our planned $ 40 million in bilateral cooperation to be implemented over the next few years. 

Shared vision

These projects fit into a larger, shared vision that the United States Government is working closely with its Sri Lankan counterparts to achieve: That of a unified, peaceful, reconciled, democratic Sri Lanka, where justice and equal opportunity are available to all. 

Let us imagine a Sri Lanka connected to the broader region, and well-placed to take advantage of its natural comparative advantages, such as its prime location astride some of the most active trading routes on the planet. A Sri Lanka that is internally connected, offering its own population and visitors alike world class highway, rail and infrastructure links; a Sri Lanka with a robust network of internal airports with multiple flights daily between the major cities; a Sri Lanka where all have access to excellent healthcare, education and opportunity.

This is the kind of vision that is essential for Sri Lanka to achieve the sustained, expansive economic growth its people deeply desire and richly deserve. But it is not one that will happen without each of us playing our roles. 

As President Sirisena stressed in his policy address to Parliament earlier this month, Sri Lanka cannot achieve political stability unless the Government ensures that “development is spread equally to all parts of the country.” The US Embassy is doing our part by working with US investors and firms to seek opportunities for trade beyond greater Colombo, including the north and east, as well as the south.

The commitment to combating corruption and establishing greater transparency and the Government’s pledge to promote reconciliation are encouraging evidence that the Sri Lankan Government understands the vital importance of attracting investment and building businesses. We look forward to continued commitment by the Government to effectively conclude ongoing investigations into past decisions that have weakened investor confidence. 

Business potential

The potential dividends for US companies looking to do business in Sri Lanka are significant, and the opportunity to reap that potential has never been greater. Interest in Sri Lanka is increasing around the globe as a result of the extraordinary changes that have taken place over the past nine months. American investors and companies, however, have one distinct advantage over their competitors – in AmCham, they have a partner with proven experience promoting U.S.-Sri Lanka commercial ties.

Under AmCham’s current leadership, its influence has been growing, not just in Sri Lanka but also beyond the country’s borders. 

Efforts to forge all-important regional ties are paying off, as evidenced by the presence of Jackson Cox, Chairman of the Asia Pacific Council of American Chambers of Commerce and by the appointment earlier this year of AmCham Executive Director Radika Obeyesekere as the Council’s vice chair for South and Central Asia. This is more than a testament to AmCham’s good work, however. It also underscores the growing international recognition of Sri Lanka’s potential to be, as Secretary of State Kerry termed it during his visit last May, “the fulcrum of a modern and dynamic Indo-Pacific region”.

AmCham can play a vital role in helping Sri Lanka realise its economic promise. And I am firmly and personally committed to doing all I can during my tenure as Ambassador to make our partnership more productive. But friends, it is ultimately you, the members of this organisation, who know Sri Lanka best, who will determine whether AmCham fulfils its potential as a game changer. 

Tonight we have heard a lot about the opportunity facing the members of the American business community here in Sri Lanka. It’s now up to each and every one of us to seize that opportunity; we must put words into action. And so tonight I challenge all of us to help chart the course to sustained peace and prosperity for all Sri Lankans. By doing so, you will be creating a brighter future for this organisation, for your companies, for Sri Lanka and for Sri Lanka’s relations with the United States of America and the international community. Thank you.

Pix by Lasantha Kumara

Developing trade through agreements

In his keynote speech, APCAC Chairman Jackson Cox discussed the widespread economic activity that was taking place in the region with many countries entering into bilateral and multilateral agreements to develop trade. 

Some of these agreements include, a series of agreements entered into by Australia with Korea, Japan and China with negotiations being in progress for an agreement with India. Japan, Korea and China have been negotiation a tri-partite agreements between themselves and Japan (the second largest economy in the region) has recently signed an economic partnership agreement with Mongolia (one of the regions smallest economies of the region). Additionally the block of 10 ASEAN economies is negotiation a regional comprehensive economic partnership with Australia, China, India, Japan, South Korea and New Zealand. 

Cox, however, is most excited about the Trans Pacific Partnership (TPP) which he hopes will be concluded in Atlanta this week. As Cox described it, the “TPP is the largest trade agreement ever negotiated. 12 member economies account for over 40% of the global GDP.”

His excitement about this agreement stems from two reasons. Firstly because it’s a ‘high standard and rules based agreement’. This means the TPP not only breaks down barriers for trade between various markets but also establishes a high standard of rules that must be followed while member states conduct trade relations with each other. 

The second reason for its significance according to Cox is that it is ‘aspirational’. This means that even after the agreement is reached by the 12 original members, others will be able to join. New members would have to comply with TPPs strict standards, and this would push such countries to improve their policies and uphold the expected standard of rule of law, transparency, protection of intellectual property, and high environmental and labour standards set by the TPP. In return they would gain access to the biggest markets in the world. 

In his address at the AGM he also pointed out the central role of the AmCham in this developing trade as part of the private sector, saying they should “take the lead in advocating these issues”.

AmCham President Asanka Ratnayake also discussed some of the upcoming plans of the Chamber and its “important role play towards attracting and enhancing trade.” A plan has been drawn up for the next three years and he revealed that the members of the Chamber will be contacted to provide feedback and raise issues that need to be resolved while it achieves its goals. (SDS)