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21November2024

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The Historical ties between the two countries runs even further.

belgium

• Earliest contact between the two countries was when Belgian priests and nuns played an important role in missionary work in Ceylon. From the 17th century, they were dedicated to teaching, in addition to being involved in religious activities. As early as 1620, Nicolao Paludano from Liège, spent most of his life in pastoral work in Jaffna and is said to have been fluent in the Tamil language. The Oblate Fathers of Our Lady were also very active in Colombo and Jaffna, and the Franciscan Sisters and the Sisters of Charity from Ghent, did their activities in many other places. Mother Solange from Huy was the founder of the 'Teacher Training College of Bolawalana'. In 1862, the Papal Seminary in Kandy was also entrusted to the Belgian Jesuits. This seminary trained priests from 9 ecclesiastical provinces of India and Ceylon.

• In 1893, the Catholic Diocese of Galle was established by Belgian Jesuits. Monsignor Joseph Van Reeth from Antwerp was the first Bishop of Galle from 1895 to 1923. Belgian Jesuits founded the leading boys school St. Aloysius' College Galle and Sisters of Charity from Brussels founded Sacred Heart Convent Galle, leading girls school in 1896. 5 Belgian nuns started the school with Mother Mary William. The nuns introduced lace making and embroidery as a cottage industry to the women of Galle.

• Earliest recorded political contact was when during his voyage to the Far-East King Leopold II, then the Duke of Brabant, visited Ceylon in 1864, one year before he ascended the throne. He toured the island for 16 days and visited, among other places, Galle, Colombo and Kandy. He had the honour of inaugurating the railway line from Veyangoda to Ambepussa. He also visited the Ramboda waterfalls and the famous Botanical Gardens of Peradeniya.

• In 1911, Dr. Kamiel Vermoesen, Professor of Natural Science at the University of Leuven, visited Sri Lanka, on behalf of the Belgium Government, to study tropical plant diseases, mainly in the coffee plantations. He stayed in Sri Lanka for one year in Peradeniya.

• In 1925, King Albert I and Queen Elisabeth visited the Papal Seminary in Kandy which was administered by Belgian Jesuit Priests. During this visit King Albert I planted a tree 'Amherstia Nobilis' ( Pride of Burma) at the Royal Botanical Gardens, Peradeniya. This tree, has presently flourished into a spectacular specimen, with a height of about 15 metres1.

 

plant

• A Sri Lankan also owns the only existing Belgian 'Pipe ' car remaining in the world. Available in Colombo since 1914, it is in perfect condition.

Post Independence Relations
________________________________________

Diplomatic relations between Sri Lanka and Belgium was established in 1953 and the Sri Lanka Embassy in Brussels was established in July 1973.

The Embassy is supported by an Hony. Consul of Sri Lanka in Antwerp, which position has been held by Ms. Monique de Decker Deprez, since, 1997.

In March 2001 President Chandrika Bandaranaike Kumaratunga visited Belgium and had an audience with His Majesty King Albert II. She also met Hon. Guy Verhofstadt, Prime Minister of Belgium.

There had been several high level visits between the two countries.

Prime Minister Ranil Wickremesinghe paid a five-day official visit to Belgium in October 2016 and met his Belgian counterpart Charles Michel and Prince Laurent. Prime Minster Wickremesinghe also visited the Antwerp diamond pavilion and Antwerp Port.

Foreign Minister Tilak Marapana during his official visit to Belgium met with the Deputy Prime Minister and Minister of Foreign Affairs of Belgium Didier Reynders in September 2017.The two Ministers noted the cordial bilateral relations between the two countries.

Ambassador His Excellency Chandana Weerasena presented his Letters of Credence to His Majesty King Philippe the King of Belgians, as the Sri Lanka Ambassador Extraordinary and Plenipotentiary to the Kingdom of Belgium at the Royal Palace of Laeken in Brussels, on 27 March 2024. He succeeded H.E Mrs. Grace Asirwatham.

 

Agreements

________________________________________

• Agreement on Development Cooperation in March 1977.

• Agreement on Investment Protection Agreement in April 1982.

• Avoidance of Double Taxation Agreement in February 1983.

• Air Transport Agreement in December 1998

• In March 2001 two agreements were signed to promote investment and to strengthen bilateral cooperation in the fields of technology and financial assistance.

• The Belgium Corporation for International Investment (SBI), the Belgium Institution especially set up to encourage Small Scale & Medium Industrial Investment in other countries entered into an agreement with the National Development Bank (NDB) and the Development Finance Corporation of Ceylon (DFCC) - the two major development banks in Sri Lanka. An agreement was also signed in 2001 by the two parties in order to enable financial cooperation in the field of investment.

• Agreement on Maritime Transport between the Government of Sri Lanka and Belgium in October, 2003.

Sri Lanka and Belgium also have signed a number of 'specific agreements' aimed at operationalizing short term projects.

•The Memorandum of Understanding (MOU) on Bilateral Consultations between Sri Lanka and Belgium was signed on 18.12.2017 in Brussels, Belgium.

 

Bilateral cooperation

________________________________________

Contribution of Finexpo for projects in Sri Lanka

Since 2007 several Belgian companies have proposed equipment in different sectors and they have received positive reactions from their counterparts in Sri Lanka. In the same time the Belgian authorities agreed to offer soft loan credit to allow the implementation of projects which contribute to the development of Sri Lanka. The soft loan instrument allows the authorities of Sri Lanka to only reimburse the credit granted by a Belgian bank for the implementation of the project without paying any interest rate linked to this capital. This advantage is in line with the OECD rules and represents in net present value a gift element of 35% of the bank credit.

Tied aid projects introduced to Finexpo:

1. Balangoda – Kolonna Water Supply Project
• Contract amount : 10.354.500€

2. Monaragala & Badula Areas Water Supply
• Contract amount : 23.980.000€

3. Rehabilitation of 6 steel railway bridges
• Contract amount : 4.379.966€

4. Port – Tracking Communication
Contract amount: 18.000.000€

Total Euro 56.7 Million

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The travel advisory published by the Ministry of Foreign Affairs of Belgium on Sri Lanka was positively revised in September 2024 and encouraged Belgians to visit Sri Lanka.

TRADE WITH SRI LANKA

Sri Lanka exports a wide range of agricultural & industrial products and services, and over the years Sri Lankan exporters have established a solid reputation for unparalleled quality and integrity.

Main Export Products:

  • Apparel
  • Ceylon Tea
  • Rubber & Rubber-based Products
  • Gems & Jewellery
  • Spices & & their Essential Oils (including Ceylon Cinnamon)
  • Organic Products & Herbal Products
  • Coconut & Coir based Products
  • Fisheries Products
  • Fruits & Vegetables and Food & Beverages
  • Giftware & Toys and Handloom & Batik, Fair Trade Products
  • Ship & Boat Building
  • Ceramic & Porcelain
  •  Industrial Minerals

 

Other Export Product Sectors:

  • Aquarium Fish
  • Floriculture
  • Footwear
  • Plastic Products
  • Electrical & Electronic Products
  • Light Engineering Products
  • Furniture

Main Export Services:

  • IT/BPO
  • Logistics services
  • Wellness Tourism

Please visit https://www.srilankabusiness.com/ for more details about Export Opportunities in Sri Lanka.

Bilateral Trade Relations between Belgium and Sri Lanka

Sri Lanka and Belgium has been enjoying a cordial trade relation for many years. Belgium was the 12th largest export destination for Sri Lanka in 2023. In 2023, total value of products exported from Sri Lanka to Belgium was US$ 221 million. Sri Lanka is a beneficiary country under the EU GSP+ scheme and being a member of the European Union, Belgium provides preferential access for Sri Lanka’s exports under EU GSP+ scheme. Belgium was the 4th largest export destination for Sri Lanka in the EU market.

Belgium was the 34th import origin for Sri Lanka in 2023. Sri Lanka imported US$ 58 million worth products from Belgium in 2023.

 

Bilateral Trade in Products between Sri Lanka & Belgium (2018-2023)

-Values in US$ millions 

Year

Exports from

Sri Lanka to Belgium

Imports from Belgium to

Sri Lanka

Trade Balance

Total Trade

2018

359.21

80.35

278.86

439.56

2019

352.14

74.02

278.12

426.16

2020

295.48

48.28

247.2

343.76

2021

334.32

119.15

215.17

453.47

2022

307.68

64.64

243.04

372.32

2023

221.45

58.17

163.28

279.62


Source: Sri Lanka Customs

 

Graph-Bilateral Trade Relations between Belgium and Sri Lanka

 

Sri Lanka’s main export products to Belgium in 2023 were Apparel, Rubber Tires, Rubber Gloves, Textile Gloves, Manufactured Tobacco, Tea, processed Diamonds, Fisheries products, Coconut based products etc. 

 

Sri Lanka's Top Export Products to Belgium (2021-2023) -all values in US$ millions:

 

Product

2021

2022

2023

Pneumatic & Retreated Rubber Tyres & Tubes

33.88

29.65

32.46

Men's Outerwear

34.94

44.63

24.43

Gloves, Mitts & Mittens of Textile

28.48

23.78

23.69

Manufactured Tobacco

10.62

15.09

19.4

T-shirts

35.47

30.44

19.24

Tea Packets

13.36

12.13

15.51

Industrial & Surgical Gloves of Rubber

30.25

23.93

14.53

Women's Outerwear

59.44

36.42

10.46

Diamonds

6.23

8.56

9.95

Men's and Women's Under Garments

20.35

16.84

8.34

Warm Cloths (Jerseys, Pullovers etc)

9.72

21.69

6.95

Motor Vehicles & Parts

0.46

2.57

5.78

Other Textile

2.53

8.29

3.88

Unmanufactured Tobacco

13.91

5.11

2.74

Frozen Fish

4.91

3.99

2.66

Made-up Textile Articles (Blankets, Rugs, Linen, Curtains etc)

0.98

0.96

2.48

Hosiery

3.17

6.3

2.24

Fish Fresh or Chilled

2.17

2

2.05

Liquid Coconut Milk

2.07

1.24

2.01

Activewear/Sportswear

4.77

2.07

1.94

Other products

16.62

11.97

10.72

Total Exports from Sri Lanka to Belgium

334.32

307.68

221.45

Source: Sri Lanka Export Development Board

 

Sri Lanka’s main import products from Belgium in 2023 included Diamonds, Unmanufactured Tobacco, Electrical & Electronic products, Animal feed, Pharmaceutical products, Meat, Preparations of Meat/Fish & Dairy produce, Miscellaneous Edible Preparations etc.

 

Sri Lanka's Top Import Products from Belgium (2021-2023) - All values in US$ millions

 

Product

2021

2022

2023

Diamonds

4.54

5.99

16.61

Unmanufactured Tobacco

7.93

3.6

4.72

Other Electrical & Electronic Products

4.7

4.67

3.9

Animal Feed

2.27

1.19

3.74

Pharmaceutical Products

66.48

19.62

2.96

Meat, preparations of Meat/Fish & Dairy Produce

1.18

1.04

2.53

Miscellaneous Edible Preparations

2.81

2.63

2.39

Manufactured Tobacco

1.21

1.28

2.05

Other Products of Plastics

3.81

3.05

1.92

Other Chemical Products

2.44

2.28

1.75

Sugars, Sugar Confectionery & Bakery Products

0.01

-

1.59

Rubber Plates, Sheets Rods of Vulcanized or Unhardened Rubber

1.18

1.98

1.46

Other Paper & Paper Products

0.85

0.92

0.89

Processed Vegetables, Fruits & Juices

0.28

0.33

0.88

Other Wood & Wooden Products

1.17

0.95

0.88

Other Rubber Products

0.45

0.85

0.81

Fertilizers

0.06

0.98

0.77

Cartons, Boxes & Bags

0.39

0.32

0.75

Soap, Washing Preparations, Waxes, Candles etc.

0.89

0.56

0.56

Other Textile

0.68

0.59

0.53

Other products

15.8

11.8

6.48

Total Imports to Sri Lanka from Belgium

119.15

64.64

58.17

Source: Sri Lanka Export Development Board

 

Evolution of Belgium’s Trade in Services with Sri Lanka (2019-2023)

-Values in EURO millions

 

Year

Exports from Belgium to Sri Lanka

                                   

Imports from

Sri Lanka to Belgium

Trade Balance

Total Trade

2019

7.0

21.8

-14.8

28.8

2020

6.2

15.8

-9.6

22

2021

6.9

14.3

-7.4

21.2

2022

20.1

25.6

-5.5

45.7

2023

31.8

15.5

16.3

47.3

Source: Belgian Foreign Trade Agency

 

Potential Products & Services from Sri Lanka which have export potential in the Belgian Market

Apparel; Ceylon Tea (Specialty Teas & Value-Added Teas); Ceylon Cinnamon (which has GI Status in the EU market), other Spices & their Essential Oils;IT & Communication Services; Coconut & Coir based products; Rubber tires, gloves; Food & Beverages; Seafood; Organic & Fair-Trade Products; Fresh Fruits (pineapple etc.); Production related Services; Transportation Services; Business Services.

 

Potential Products & Services from Belgium which have export potential in the Sri Lankan Market

Precious metals and stones – Diamonds; Foodstuffs; Machinery and equipment; Chemical products; Optical, precision and medical instruments; Plastics; Base metals; Animal products; Paper and paperboard; Construction Services; Communication services; Financial Services; Transportation Services; Business Services.

 

 

 

 

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