Lanka doubles exports to Poland

To mark 50 years of diplomatic relations between Poland and Sri Lanka Polish Days will be held from August 23-30. It will consist of a Polish Film Festival, an evening of classical music, Poster Exhibition and a Food Festival.

The balance of trade between Poland and Sri Lanka has been in favour of Sri Lanka and there has been a significant growth in bilateral trade with exports doubling over the last six years from 1.071 bn in 2001 to 2.8 bn in 2006, said Sri Lanka Poland Business Council President Nirmali Samaratunga.

Imports too have increased tenfold between 2001-2006. On a year on year basis exports grew by 40% over 2005 while imports increased by 29%.

She said that however, the potential of Poland is still largely untapped by Sri Lanka and trade with Poland although on the increase still remains at a mere 0.4% of Sri Lanka's total trade.

Samaratunga said that Poland's accession to the EU in 2004, coupled with EU GSP plus special concessions granted to Sri Lanka and the strategic location of Poland, offering easy access to the EU and East European markets are some of the key factors that make Poland a viable and potential market for Sri Lanka.

In view of Sri Lanka's specific focus on an export driven economy, Poland presents a very promising prospect to achieve such export growth, and if properly developed could become a significant trading partner in the future.

Samaratunga said that at present tea remains the dominant export accounting for over 50% of total exports and Poland is the third largest importer in Europe after UK and Germany. In consumption it is second only to UK. Other export lines such as value added coconut and coir products, rubber products, gems and jewellery, textiles and garments and ceramics have found markets in Poland and need to be further developed.

Similarly with regard to imports, Poland also enjoys a strong position as a viable source of a range of quality and price competitive products namely in the healthcare, industrial, construction and food sectors. At present the main imports include sugar, hardware, and building materials, paper products, machinery and pharmaceuticals and medical products.

Tourism is yet another potential sector that can be tapped both for inbound as well as for outbound, she said.

Today Poland is considered to be a very significant trading partner for Sri Lanka and with a population of 38 million it is the largest among the 10 countries that joined the EU in 2004.

The Polish economy has been growing at a steady pace of over 5% annually driven by FDI and EU development funds as well as remittances from foreign employment.

The Sri Lanka Poland Business Council was founded in September 1999 following the visit of the Polish President to Colombo earlier that year. The primary objective of the business council is promoting bilateral trade and investment between the two countries.

A website was launched by Honorary Consul General for Poland, Ken Balendra on Thursday.

SG