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Promoting the services sector in Sri Lanka

27 January 2005

The service sector makes up some 60 per cent of Sri Lanka's gross domestic product (GDP).

The Commonwealth Secretariat is providing technical assistance to the Government of Sri Lanka to help the country build up its capacity in the services sector. This sector makes up some 60 per cent of Sri Lanka's gross domestic product (GDP). Sri Lanka has to position itself in the global services trade that is currently valued at US$1.3 trillion in order to realise maximum benefits from the trade.

The project, funded by the Commonwealth Fund for Technical Co-operation (CFTC), involves the development of a marketing plan and services policy for the Sri Lanka Export Development Board to promote and expand trade in professional services. The Special Advisory Services Division (SASD) of the Commonwealth Secretariat will oversee this CFTC project.

George Saibel, Director of SASD, said: "The project will help to design and implement an export development plan and to improve the competitiveness of Sri Lanka's services sector. This will help increase exports and lead to a greater penetration of the country's products in foreign markets. To achieve this, there is a need for a well designed and comprehensive promotion and marketing strategy."

Mr Saibel stated that the steps to be taken include the assessment of Sri Lanka's business environment, the level of institutional support in the services sector and its comparative advantages.

"We have to identify sub-sectors in the services industry in Sri Lanka with potential competitive export capability and to look at foreign market opportunities. The aim is to promote diversification of services' export. We have to examine potential legal and non-tariff barriers for the export of services from Sri Lanka.

"In the light of the devastating effect of the tsunami on the overall economy of Sri Lanka, this CFTC project is important for the rapid recovery of the country's economy as it relates to the development of the export sector, employment generation and foreign exchange earnings."

CNIS - the Commonwealth News and Information Service Issue 219 26 January 2005