The fine art of economic diplomacy - EDITORIAL

resident Maithripala Sirisena apparently having learnt  the fine art of economic diplomacy or diplomatic economics, returned to Sri Lanka yesterday with a planeload of economic and trade agreements with Germany and Austria. 
Rising from the ashes of the second world war, Germany has emerged as Europe’s economic superpower -- and President Sirisena was well aware and well advised on this dimension when he met the powerful German Chancellor Angela Merkel, Economic Affairs Minister Gerd Muller and more than 250 German entrepreneurs for talks on a multitude of fields ranging from digital technology and wildlife conservation to the battle against the kidney disease epidemic. 

On Wednesday, when the President met Chancellor Merkel, she said she would send a high level business delegation including the German Economic Affairs Minister to explore ways to improve economic investments and trade relations between the two countries.
According to reports, Dr. Merkel said Germany was happy to see the progress of the reconciliation in Sri Lanka   and was aware that the people in the South and the North are living contentedly. As a leader of a country that was shattered by megalomaniac Adolf Hitler’s Nazi racism, the chancellor said Germany was specially keen on assisting in the welfare of the Northern people. Dr. Merkel also said Germany was happy about the restoration of democracy and good governance by the new national government. 

Her comments and statements by Austrian leaders underlined the importance of maintaining good and balanced relationships with all countries in the international community. The former regime, largely due to arrogance or miscalculation, had antagonised many powerful countries and linked up too closely with China. President Sirisena and Prime Minister Ranil Wickremesinghe, acting with diplomatic skill and wisdom, took effective steps to correct the imbalance and the results of these are now being seen. 
Lakshman Kadirgramar, widely respected as one of Sri Lanka’s and Asia’s best Foreign Ministers, had often said the role of a diplomat was not so much to go to Buckingham Palace in top-hat and tailcoat but to diplomatically work out economic and trade agreements beneficial to all the people of Sri Lanka. We are happy that the National government is following Mr. Kadirgramar’s 
time-tested policy. 

After talks with German leaders, agreements were signed to enhance economic and technical cooperation between Germany and Sri Lanka. Accordingly, Germany will donate 18 million Euros (More than Rs. 2.8 billion) to Sri Lanka. Under this grant, 6 million Euros will be provided for the support of National Park and Buffer Zone Management of Wilpatthu while 4 million Euros will be provided for the Vocational Training in the North. Funds will also be granted for the Small and Medium Enterprises Sector Development and for the facilitation for initiatives for Social Cohesion and Transformation in Sri Lanka.

An agreement was also signed with the German Association for Small and Medium Sized Enterprises (BVMV) on Small and Medium Enterprise Sector Development. It covers the area of technical capacity development in the apparel sector in specific areas such as management techniques, fashion changes and capacity consuming. This involves technical skill development, technology transfer, using IT platforms, market research and multidisciplinary studies in the apparel sector. It aims at improving Export opportunities for Small and Medium Industries Products, Ayurveda, Herbal, Electronics, Floriculture products, ICT, leather, seafood, beverages and other areas.
Germany also agreed to do its best to restore the Generalized System of Preferences (GSP+) concessions to Sri Lanka and lift the European Union’s ban on the export of fish and fish products 
from Sri Lanka. 

In Austria also, the President worked out several economic and trade agreements with the state and private sectors. In both countries he appealed to highly qualified Sri Lankans to return and work to build Sri Lanka as a model of Asia. We hope this successful economic diplomacy and its fruits will be equally distributed among all the people in Sri Lanka so that our economy also will remain on a sustainable eco-friendly and all inclusive path.