Latest statistics from the Central Bank of Sri Lanka reveal that Sri Lanka's exports to the EU grew by 25.5 percent in the first nine months of 2011 ( 2635 Million $), compared to the corresponding period of 2010 (2100 Million $) Sri Lanka's ambassador to Belgium, Luxembourg and the EU Ravinatha Aryasinha, said.

"Meanwhile, with respect to Belgium, which is the 4th largest destination among EU countries and the 6th largest destination of Sri Lanka's exports to the world, exports grew by 41.4 percent in the first nine months of 2011 (382.53 Million $), compared to the corresponding period of 2010 ( 270.6 Million $)".

Ambassador Aryasinha made these observations when he delivered the keynote address at a seminar 'Doing Business in Sri Lanka' organized by Flanders Investment and Trade (FIT) to coincide with the visit of a business delegation from the European Chamber of Commerce of Sri Lanka (ECCSL), and held in Brussels on last Friday.

He said "these growth rates are particularly impressive given the fact that the after effects of the financial crisis, high unemployment in developed economies and austerity measures in Europe continue to shrink the possibility of bouncing back world trade to its pre-crisis levels. It also reflects trade conducted without the benefit of the special preferential tariff concession GSP+".

The Ambassador said he saw the visit of the ECCSL delegation comprising Sri Lankan business leaders and officials of the chamber, as a continuum to the visit of the business delegation led by Industries and Commerce Minister Risath Bathuideen the previous week, and that within a fortnight over a hundred Belgian companies had made contact with Sri Lankan business leaders.

Acknowledging that the trade balance was very much in Sri Lanka's favour, he noted that nevertheless according to the Central Bank, Sri Lanka's imports from the EU have also grown by 20.2 percent in the first nine months of 2011 (1365 Million $), compared to the corresponding period of 2010 (1136 Million $).

Imports from Belgium, which is Sri Lanka's 16th supplier, and the 4th largest among EU countries, grew by 52.3 percent in the first nine months of 2011 (292.06 Million $), compared to the corresponding period of 2010 (191.79 Million $).

With respect to Foreign Direct Investment (FDI), he pointed out that according to the Board of Investment, European investment in Sri Lanka in the first half of 2011 amounted to US$ 52 Million, which was 13 percent of the total FDI attracted by the country. Of this, Belgium was the second largest source of investment among EU member countries, recording investment amounting to US$ 11.28 Million.

Ambassador Aryasinha also outlined the considerable opportunities and incentives provided for foreign enterprises to invest and do business with Sri Lanka in recent years, most recently through the 2012 budget.

He said, two way trade and investment between Sri Lanka and EU member countries could be enhanced considerably, if the increasing business interest regarding Sri Lanka in European countries, was to be backed by the availability of export credit and financing within these countries, in a manner that serves the interests of the European business enterprises.