Bilateral Trade: Sri Lanka

Debate between Lord Price and Lord Sheikh

Tuesday 28th February 2017 Lords Chamber

[The Minister of State, Department for International Trade (Lord Price) (Con)]

As the UK leaves the EU, our aim is to avoid disrupting the strong trade relationship we have with Sri Lanka. In the future we will consider all opportunities to deepen this relationship and expand bilateral trade. I look forward to discussing this with the Sri Lankan Government at the meeting of Commonwealth Trade Ministers in London this March.

[Lord Sheikh (Con)]

My Lords, I thank my noble friend the Minister for his reply. Sri Lanka is expecting economic growth of 5.5% this year, and has signed free and regional trade agreements with other nations, with another under negotiation with China. Does the Minister agree that Sri Lanka should be an integral part of our global business strategy to approach new international markets? Will he consider the possibility of appointing a trade envoy for Sri Lanka and of sending a ministerial-led trade delegation to the country?

[Lord Price]

I agree with my noble friend that the economic situation in Sri Lanka is improving. We are delighted to see the growth forecast of 5.5%. It is also heartening that exports from the UK to Sri Lanka increased by 46% in 2015 and exports from Sri Lanka to the UK stood at £1.1 billion. More than 100 UK companies have an affiliation in Sri Lanka. I am delighted that the UK Government are keen to support Sri Lanka moving to the GSP Plus scheme, which will remove tariffs on 66% of goods. At the Commonwealth meeting that we are holding next month we hope to think more about how we can strengthen those ties. There are no plans to have a trade envoy for Sri Lanka but we will continue to work with it to improve our trade relationships.