Visiting Swedes to boost trade

Export access to EU through Sweden

by Chandani Jayatileke

Swedish investors are eager to return to Sri Lanka with foreign direct investments, almost after a decade and equally enthusiastic to see Sri Lankan exporters entering the Swedish markets soon. Their interest on returning to Sri Lanka was reiterated recently at a high level business meeting in Colombo presided over by Swedish Foreign Minister Margot Wallström.

Sweden severed its diplomatic relations with Sri Lanka in 2009; and closed the embassy in Colombo as relations between the two countries were strained owing to political issues.

The two countries are now ready to create a new era of business and diplomatic bonds; Sweden has also shown an interest in reopening its embassy in Colombo.

Swedish FM Wallström who visited the island recently said she is keen to strengthen ties with Sri Lanka and added that Sweden may consider reopening the embassy in Colombo in the near future, subject to its government's budget and decision. Sweden has also reopened some of the other embassies which were closed due to various reasons in the past, she said.

The high level Swedish business delegation, which accompanied the FM, was led by the Secretary General, Sweden-Sri Lanka Business Council (SSLBC), Leif Ivan Ohlson.

Forty-nine-year-old Ohlson was Head of District for the Sri Lanka Monitoring Mission (SSLM) in Batticaloa from 2005-2006 and had been an international political affairs official in former Yugoslavia, the Netherlands and Sri Lanka. He is also in the hotel business and art scene in Sweden.

During his recent visit to Colombo, Sunday Observer Business met Ohlson for an interview on how to resume investments in Sri Lanka.

Excerpts from the interview

Question: Your Foreign Minister indicated that she would like to strengthen diplomatic ties between our countries and our Deputy Foreign Minister made an informal invitation to the Swedish Ambassador based in Delhi to make Colombo his permanent official residence. How do businesses benefit from this move?

Answer: It is important for Sweden to be in Sri Lanka and strengthen its business, political and diplomatic ties. You need to build diplomatic relationships on a continuous basis. I have worked as a political affairs official for 20 years in several countries and I know how important it is to make contacts with people and countries for future business and investments. It makes a lot of sense to understand local behaviour and business environment by physically being here rather than coming to do business occasionally. So we welcome the idea of a more permanent Swedish diplomatic representative in Colombo.

Q: How do you look at the Swedish government's renewed interest in business-based diplomacy in Sri Lanka?

A: It is time that the two countries explored business opportunities in both countries at the same time. We want to see Sri Lanka's business presence in Sweden. We have proposed to maintain a business centre in Sweden where businessmen can meet, interact and also display the country's export products. A similar place for the Swedish business community can also be started in Colombo. Sweden is no stranger in Sri Lanka's investment sector. Some of the top Swedish companies have been here for a long time. There are instances where Swedes who first visited Sri Lanka as tourists have become investors later. Sri Lanka is not that far for Swedish people; we are well-connected. Travelling is easy. To be precise, I can leave Stockholm at 6pm and arrive in Colombo by 9 am the next day. After a couple of hours of rest we can start our business. It is so much more pleasant to do business here than any other country in Asia. From my perspective as the Secretary General of the Council - we really want to tell Swedish companies that "something is happening here now and Sri Lanka is the place to be". We are aware that some French companies are moving here - so we don't mind travelling long distances too.

Q: But some representatives of your delegation came from India. They are already in that country. Does it mean that the Swedish companies already in India want to expand their businesses?

A: I would like to see more companies based in Sweden to come to Sri Lanka directly. However, some large Swedish companies which are already in India would also want to come here. We now understand it is easier to penetrate Indian markets from Sri Lanka by using its Free Trade Agreement (FTA) as well. So we will spread this message among the Swedish business people - the FTA with India is not well known in Sweden yet. Therefore, I do not think any Swedish company is yet using the FTA benefits. Sometimes when we talk about it in Sweden - they ask -'oh is it'? 'Is there an FTA?' It is not always easy for the Swedish companies, especially the medium scale companies to enter India. So Sri Lanka would be a gateway for them. We now have a better understanding about the opportunities here and want to use them. For Sri Lanka, our presence means more job opportunities for the youth and solid foreign exchange earnings for the economy.

Q: Sweden has also offered Sri Lankan exporters the use of its Open Trade Gate (OTGS), which acts as a facilitator to exporters, to enter the Swedish and the Scandinavian markets? What are your views?

A: Sri Lankan exporters seem to depend too much on traditional markets. We want them to look at Sweden as a lucrative export market. Although Sri Lanka has quality consumer products, we do not find any in Swedish markets. They have a better opportunity in Sweden; perhaps they are not aware of it. At present we do not find Sri Lankan products in our stores in Sweden. For instance, Sri Lankan exporters can begin with spa products or foodstuff made by MD, for example. If you wish to sell them you have to register with the health authorities in Sweden first - but if you do that in Sweden you can sell them to the rest of the EU. So it is better to do it quickly in Stockholm- instead of waiting in a queue in some other European country. Sweden, especially is a good market for SME exporters - it is a place for a new exporter to begin with. I feel that they are a little bit afraid of exports - don't be afraid to find markets in Sweden. Sri Lankan companies would do better by cooperating with foreign companies. They should not run alone. Sweden can definitely help increase Sri Lanka's export earnings.

Q: What Sri Lankan products would you like to see in Sweden?

A: Sri Lanka produces some of the best porcelain products in the world. But many Swedish people are not aware of it. There is an up-market Swedish label of Porcelain called Rörstrand which is actually made by Dankotuwa Porcelain in Sri Lanka. But it was not even mentioned that it is produced in Sri Lanka. So obviously, porcelain items from Sri Lanka are welcome.

Q: How do you propose to increase Swedish tourist arrivals in Sri Lanka?

A: Sri Lanka can do a lot to develop its tourism industry; the authorities here can consider following the Georgian example, for instance. Georgian Custom officers offer bottles of red wine to visitors to that country. They are proud of their wine. It's a great way to welcome tourists and also promote local products among foreigners. Sri Lanka offers some of its best products something unique to the island - such as spa products, porcelain items, MD jam, to name a few for the tourists so that they would want to buy more of them. It is an efficient way to find new markets for your products. The first impression the tourists should get about Sri Lanka is not only about its beaches and batiks; it has much to offer. I believe you need to think of the next couple of years and develop strategy for marketing tourism and local products in collaboration.

Q: What's your next step? How do you plan to follow up on this visit?

A: We are already in it. Right now it is 5.40 am in Gothenberg. We were already having a breakfast meeting in Gothenberg on 'how to do business with Sri Lanka' in association with the commercial section of the Sri Lanka Embassy of Sweden. We are moving fast and will follow up this meeting with another delegation soon. We have the support of our Foreign Minister; she herself had lived in Sri Lanka sometime back, so she is also keen to develop these bonds. Sri Lanka exported goods worth around US $ 30 million to Sweden, while it imported goods valued at US $ 45 million from that country in 2014.