Sri Lanka-france Economic Relations
The development of the economic and commercial ties between Sri Lanka and France is facilitated by the French Trade Commission, part of the Embassy of France to Sri Lanka and the Maldives and operating under the aegis of the French Ministry for the Economy, Finance and Foreign Trade. It collaborates with other local organisations such as the SLFBC ( Sri Lanka France Business Council) and local chambers of commerce.
Trade between the two countries had witnessed a sturdy growth over the past couple of years in terms of volume and has always included a diversified range of products. With the robust economic situation in Sri Lanka last year, French imports to Sri Lanka grew at an impressive level of 73 % and recorded 220m euro. This growth is mainly due to the increase in transport equipment exports from France, particularly in the aeronautic sector, which accounted for 52 % of the French goods imported in your country. Other major French exports included industrial and agricultural machinery ( 13 %) and IT products (11 %) In the meantime, Sri Lankan exports to France recorded a slighter increase, growing by 6 % to 197m with mainly garments ( 49 %), food products (19 %) and rubber based products ( 12 %). This evolution enabled France to register for the first time in our recent bilateral relations a trade surplus of 22m. According to Sri Lankan data, France positions herself as the 12th client of Sri Lanka and as her 21st supplier.
The total French investments in Sri Lanka add up to around 20m euro. Flagship among them is Noyon Lanka Limited, a joint venture started in 2004 between MAS Holding and Noyon Dentelles de Calais. The other principal investments representing French interests in Sri Lanka include those of two cement giants, Lafarge ( Lafarge Suisse) and Ciment Français ( group Ital Cimenti), whose investments total up to 10m.
Last November, Hon. Minister of Commerce and Industry Rishad Bathiudeen visited France officially. During his stay, he met his counterpart and the president of the Chamber of Commerce of Paris which gathered for luncheon with French businessmen. On this occasion, the minis- ter met several companies involved in various projects in Sri Lanka.
In order to foster the relations between Sri Lanka and France, the French Trade Commission in Colombo has organised a series of events: last January, the French Trade Commissioner convened a working breakfast in Paris to present business opportunities in Sri Lanka to French businessmen. In February a high-profile dairy sector delegation from France, led by A D E P TA , the French International organization in charge of promoting agriculture and agro industries came to Colombo and held fruitful discussions with local entrepreneurs of the sector. In June, a symposium on energy efficiency in the construction sector, which is one of the most dynamic area of the economy, was a great success, with 7 participating French companies and two public French agencies ( AFD, the French development bank, and ADEME, the French Environment and Energy Management Agency).
It is noteworthy that Sri Lanka is becoming a favourite destination for French tourists with a remarkable increase of more than 50 % of their arrivals last year: French nationals are ranked fourth among foreign visitors, with almost 50 000 tourists.