20 February 2023 09:39 am
By Easwaran Rutnam
Germany has raised the red flag on multiple issues with Sri Lanka, particularly the import ban and the Prevention of Terrorism Act (PTA). The Germans have also sought Sri Lanka’s support for a resolution at the United Nations against Russia’s invasion of Ukraine.
Some German companies operating in Sri Lanka have warned that they will be compelled to consider withdrawing from the country if the import ban continues.
Sri Lanka has slapped an import ban on several items owing to the shortage of US dollars, but Germany has urged the Government to relax the ban. The German Ambassador to Sri Lanka Holger Seubert told a group of journalists in Colombo on Saturday that some German companies have raised concerns over the import ban.
He said that if the import ban continues for another two years then some companies may withdraw from the country.
A number of German companies are operating in Sri Lanka and promote German products, including vehicle spare parts. Just recently, leading Japanese companies Mitsubishi and Taisei announced they will be scaling back operations in Sri Lanka owing to the economic crisis.
Germany has also suspended issuing loans to Sri Lanka after the island declared bankruptcy.
However, the German Ambassador said that they hope the situation will improve once Sri Lanka’s deal with the International Monetary Fund (IMF) gets approved.
Seubert said that there are also concerns over the overall business environment for German investors.
Discussions in this regard have been held with the Sri Lankan authorities, including the Board of Investment (BOI).
The Ambassador also said that Sri Lanka risks losing the GSP Plus trade concession if it continues with the Prevention of Terrorism Act (PTA). Meanwhile, Germany has sought Sri Lanka’s support for a resolution at the United Nations against Russia.
German MP Dr. Peter Ramsauer said that the issue was raised with President Ranil Wickremesinghe.
The European Union had circulated the resolution to be voted on by the UN General Assembly. The resolution calls for a cessation of hostilities and peace that ensures Ukraine’s “sovereignty, independence, unity and territorial integrity.” Last year Sri Lanka abstained from voting on a resolution against Russia. Dr. Ramsauer is Rapporteur for Sri Lanka and the Maldives in the Foreign Affairs Committee of the German Bundestag (Parliament).