Germany has been supportive of Sri Lanka’s economic recovery and debt restructuring efforts and would keep on supporting Sri Lanka, said German Ambassador Dr. Felix Neumann.
“While good progress has been made we are hopeful that Sri Lanka can secure the MoUs that will provide concrete guarantees in restructuring its external debt. This will be a crucial aspect in 2024,” he said.
He was speaking at the New Year’s Reception hosted by the Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka).
Neumann, however, said there is still more to be done.
The Ambassador said that one must not forget that 2024 will be a challenging year, too not only in Sri Lanka but also in Germany.
“Nevertheless, while geo-political events may impact both countries and the global economy, we must remain optimistic and resilient in facing these challenges “One of the challenges may be a further decrease in demand globally for consumer goods, which will impact economies such as Sri Lanka.
“Looking at the trade figures, in 2023, from January to October exports to the European Union (EU) decreased by app. 12 % to nearly 2.3 million US$.
“During this period exports to Germany valued at approximately 500 mn USD. A decrease of 23%. Imports from Germany had a volume of approximately 200 mn USD.
“Sri Lanka is one of the few countries with a surplus making business with Germany. Yet, this surplus needs to be developed in 2024. And the decrease should turn into an increase,” Neumann said.
Germany wishes to see a successful Sri Lanka reaching its full potential. For this we need to have consistent policies, cut red tape, fight corruption seriously and shore up investor confidence.
“German Investors are here for the long haul and stand by Sri Lanka during good times and bad. The expectation of a level playing field, respect or rule of law and anti-corruption measures will see more new investments coming in to Sri Lanka,” he said.
Chief Delegate of the AHK Sri Lanka, Marie Antonia von Schönburg said that despite the economic crisis Sri Lankan companie s were in Germany showcasing their products at global events to the world.
She said that said German business delegation would be in Sri Lanka in March to look at investment opportunities.
