Lanka seeks UK assistance to boost aviation, trade, and energy sectors

By Sujeeva Nivunhella reporting from London

In a pivotal meeting last week, Sri Lanka’s High Commissioner in London, Rohitha Bogollagama, appealed for critical assistance from the UK’s Office of Lord Davies to bolster the aviation industry, enhance trade ties, and advance renewable energy initiatives between the two nations.

The meeting, which took place between High Commissioner Bogollagama and UK Prime Minister’s Trade Envoy for Sri Lanka, Lord Davies of Abersoch CBE, primarily centred on reviving British Airways operations in Sri Lanka and securing additional slots for SriLankan Airlines at Gatwick airport. The aim behind these endeavours is to accommodate the surging number of British tourists visiting Sri Lanka and catering to the substantial British-Sri Lankan population residing in the UK, which numbers around 700,000.

Highlighting the burgeoning tourism sector, Bogollagama emphasized the remarkable increase in tourist arrivals, surpassing 1.3 million, with a noteworthy 120,000 visitors arriving from the UK alone. Additionally, he raised the prospect of reconnecting the Scottish population with Sri Lanka’s historic Scottish tea trails, deeply rooted in the island nation’s plantation industry established by Scottish planters.

Moreover, the High Commissioner briefed Lord Davies on the latest developments regarding the IMF bailout package and its impact on Sri Lanka’s political and economic stability. He underscored the country’s strides in achieving short-term stability, attributing this success to President Ranil Wickremesinghe’s resilient leadership in navigating various challenges.

In response, Lord Davies commended Sri Lanka’s resurgence, expressing confidence that the approved IMF bailout package, coupled with relaxed exchange controls, reduced bureaucracy in certain systems, and sustained political stability, would significantly bolster investor confidence. He anticipated a substantial surge in Foreign Direct Investments (FDIs), particularly in sectors such as apparel, Business Process Outsourcing (BPO), and tourism.

Highlighting the incentives offered to foreign investors within Sri Lanka’s regulatory frameworks, Bogollagama emphasized measures such as eased repatriation of capital and profits from projects under the Board of Investment (BOI), restructuring of State-Owned Enterprises, and initiatives in the Colombo Port City, slated to become an independent economic zone.

To further improve the ease of doing business, facilitate cross-border trade, and streamline customs controls, discussions involved seeking technical assistance from the UK, particularly from experts at His Majesty’s Revenue & Customs (HMRC). The focus would be on implementing a ‘Single Window’ system and enhancing digitalization and automation of customs procedures in Sri Lanka.

Turning to Sri Lanka’s commitment to renewable energy, Bogollagama outlined the government’s emphasis on bolstering solar and wind power plants. Notably, plans for a 200 MW floating solar power plant at Samanalawewa were revealed, aiming to cater to a significant portion of the country’s energy needs. Additionally, he expressed Sri Lanka’s interest in collaborating with industry leaders in the UK to venture into Electric Vehicle manufacturing.