Everybody thinks that an economic miracle is happening in Asia, and that since the end of the conflict, the opportunities in Sri Lanka are exceptional. Belgium recognizes the economic potential of Sri Lanka and it is a very encouraging sign that Belgian business people are consolidating this economic relationship, said Secretary-General of the Ministry of Foreign Affairs of Belgium Dirk Achten.

He made these observations during bilateral discussions held between Sri Lankan Minister of Industry and Commerce Rishad Bathiyutheen and the Belgian Ministry of Foreign Affairs, and the Foreign Trade and Development Cooperation on November 17, 2011.

Minister Bathiyutheen, who was on a two-day official visit to Belgium accompanied by a Sri Lankan business delegation, was received by Deputy Prime Minister and Foreign Minister of Belgium Steven Vanackere, at the Palais d'Egmont. He later held talks with Secretary-General of the Ministry Dirk Achten, and senior officials.

Minister Bathiyutheen briefed Secretary-General Achten on the successful 'Sri Lanka Business Forum' which was held at the Brussels Enterprise, Industry and Commerce (BECI) earlier in the day. “While two years ago, a similar event drew 13 Belgian companies and 40 Belgian companies had participated in the ‘Belgian Week’ in Colombo in November 2010, 80 Belgian companies had attended the ‘Sri Lanka Business Forum’ earlier in the day”, he said. He also noted that Belgium has become the 6th largest destination of Sri Lanka’s exports to the world, while it is the 16th largest supplier to Sri Lanka. The total trade turnover recorded at US$ 501m in 2005 has increased to US$ 645m in 2010 depicting a growth of 29% during the last 6 years, while Sri Lanka’s exports have increased by 50% in US $ terms during the same period. He added that tourist arrivals from Belgium which was 2613 in 2009, rose to 5398 in 2010, and in the first 9 months of 2011, had reached 7200 – an increase of 114% over the corresponding period the previous year.

While appreciating the role played by longstanding Belgian investors during Sri Lanka's difficult days, the Minister noted that the latest inflow of investments to Sri Lanka includes IT and IT-based activities and infrastructure development. “I am highly encouraged by the fact that leading Belgian companies such as Besix, CFE, Bam Balteau and Dredging International have recently decided to locate to Sri Lanka, and hoped that this would encourage others to follow”, he added.

Expressing his views, Secretary-General Achten said that the increase in the number of Belgian companies that had been attracted to the Sri Lanka economic promotional events over the last 3 years “is what economists call exponential growth". It was important to organize business missions at regular intervals between the two countries, he said. He drew attention to a number of Belgian companies presently engaged in and also seeking to undertake projects which contribute to the development of Sri Lanka in various sectors. With regards these projects, the Belgian authorities have offered to soften the necessary bank loans, through interest rate subsidies.

It was noted that the soft loan instrument is designed in such a way that the authorities in Sri Lanka only reimburse the capital issued on credit by a Belgian bank and do not pay any interest. In line with the OECD rules in regard Overseas Development Assistance (ODA), this advantage represents a net present value of 35% of the bank credit.

Minster Bathiyutheen appreciated the support extended towards Sri Lanka’s development by Belgium through project financing, and assured that those companies would be assisted in Sri Lanka in speedy clearance and implementation of their projects.

Noting that Sri Lanka’s premium exhibition “Sri Lanka EXPO 2012” is scheduled to be held in March 2012 in Colombo to showcase Sri Lanka’s export competiveness and its capabilities, he said, “This is a good occasion for Belgian entrepreneurs to experience Sri Lanka’s competitive strengths in the global market.”

Upon Secretary General Achten’s inquires about the IDP situation in Sri Lanka, the Minister said, under the leadership of President Rajapaksa priority was given to the resettlement of IDPs, and today 95% of the IDPs had been resettled. The remaining IDPs will also be resettled when the demining task is completed. The Minister appreciated the assistance given by the EU countries in this regard.

The Secretary General said he had visited Sri Lanka in the immediate aftermath of the tsunami, and said "Sri Lanka' resilience is well known and Belgium would be happy to help in whatever ways it could".

These discussions were attended by Ambassador Bertrand de Crombrugghe, Director–Asia, Ravinatha Aryasinha, Sri Lanka’s Ambassador to Belgium, Luxembourg and the EU, Regine Vandriessche, Councellor of the Directorate of Bilateral Relations, Hendrik Jansen of Directorate of Export Finance Aid (FINEXPO), and Jonathan Broodcoorens, the Sri Lanka Desk Officer.