Filip for SL- Canada relations

Sri Lanka-Canada relations received a fresh boost last week with High Canadian Commissioner Shelley Whiting lthat Canada will strengthen development assistance program to Sri Lanka with more investments in the pipeline.

She said Canada will continue to invest in its development assistance program for Sri Lanka in skills development, de-mining and building business partnerships between the two countries.

“We see great potential for trade and investment between Sri Lanka and Canada that has maintained healthy relations for several years.

Sri Lanka should make use of the trade and investment opportunities in Canada which is a large market for leading global brands,” Whiting said.

Despite an increase in trade between the two countries, Sri Lanka’s exports to Canada has been low. Trade between the two countries last year was around US$ 423 million. Whiting said that there is potential for trade between the two countries in areas such as ICT, green technology and education where partnerships could be explored.

Canada and Sri Lanka have strong bilateral relations based on shared participation in the Commonwealth, and development assistance through the Colombo Plan. Canada has been a development assistant partner through the Canadian International Development Agency (CIDA) since the 1950s. It extended its support for tsunami relief, recovery and reconstruction projects in Sri Lanka.

Canada with a population of around 35 million, is one of the wealthiest countries in the world, with the tenth highest per capita income globally and the eighth in the human development index. It ranks among the highest in international measurements of government transparency, civil liberties, quality of life, economic freedom and education.

“A significant contribution has been made by Canada in the spheres of agriculture, infrastructure development, skills improvement and research. The Trade Commission Service assists in doing business with Canada by offering sources of businesses, building business and networking with Canada,” the High Commissioner said.She said that agriculture is a major area that both countries could explore for development. Canada has a highly developed agricultural sector backed by a skilled and technological innovative workforce.

Agriculture is a key sector in the Canadian economy and is one of the largest agricultural producers and exporters in the world. It exports quality grains, oil seeds and pulses.

Canada exports cereals, edible vegetables, roots and tubers, coffee, tea, spices,eggs and diary products to Sri Lanka. Woven clothing and apparel, rubber and rubber articles, boilers, mechanical appliances, fish, crustaceans, molluscs, edible fruits and nuts, coffee, tea and leather articles are some of Sri Lanka’s key exports to Canada. Director General, Department of Commerce, R.D.S. Kumararatne said that there is immense scope for Sri Lankan products to capture the Canadian market.

“We need to go beyond the traditional markets such as USA and UK to new markets and brand our products. A change in attitude and vibrant promotion will pave the way for a strong export market in Canada,” he said. “Sri Lankan exporters should link with technology and make use of the North American Free Trade Agreement (NAFTA) to boost exports. Links with buyers with buyback agreements will help to increase export volumes,” Kumararatne said.

He said Sri Lanka exports a large quantity of coco peat to Canada. There is also a demand for body brushes and organic and fair trade products.We need to be innovative and focus on exports of value-added brands.Kumararatne said that trade and Economic relations between Sri Lanka and Canada have increased over the years. Apparel and clothing have been the main item of export from Sri Lanka to Canada, which accounted to 54% of the value of Sri Lanka’s exports to Canada in the past years. Other main items of exports to Canada are rethreaded or used pneumatic tyres of rubber, compounded rubber, raw bristle fibre of coconut (coir), tea, gloves, mittens and mitts, new pneumatic rubber tyres, other articles of vulcanised rubber other than hard rubber and cereal preparations. Import of wheat and muslin accounted for 83% of the value of total imports from Canada during the past years. Other main imports from Canada are iron or steel and its articles, dried leguminous vegetables, newsprint, in roll or sheets, plastics, uncoated craft paper and paperboard, and optical photographic, cinematographic items.

Products and services which have potential to be exported from Sri Lanka to Canada are, textiles and apparel, gem and jewellery, rubber based products, ceramics, confectionery, leather products, fresh and processed food.

-LF