United Kingdom: Sri Lanka has initiated the process of entering into a Comprehensive Economic Partnership Agreement (CEPA) with the UK, High Commissioner of Sri Lanka to the UK Rohitha Bogollagama told Sunday Observer Business on the sidelines of the “Sourced – Sri Lanka” apparel roadshow at the Royal Horticulture Hall, London on Wednesday.
He said that this will be similar to the UK trade agreement with Kenya.
The UK is the first country outside of Africa to enter into a trade agreement with Kenya, the East African Community’s largest economy.
Bogollagama said currently the UK is negotiating an FTA with India and when this is over along with the UK elections the CEPA agreement would be taken for discussion.
He said that this will also help to increase trade and services between the two countries to a great extent and most importantly create more employment opportunities for Sri Lankans specially in the ICT sector.
Opening up employment opportunities will be a one-way deal as people in the UK would not seek employment in Sri Lanka.
He said that this was mandated by President Ranil Wickramasinghe to further increase market access.
Commenting on connectivity he said that currently there are nine slots used by Sri Lankan Airlines between Heathrow and Colombo there are three more slots offered to Sri Lanka at Gatwick Airport and SriLankan Airlines should try to utilise it.
Bogollagama recalled that UK stands as Sri Lanka second largest apparel market, holding a 13% share of local total exports after a 42% to the USA.
In 2023, Sri Lanka’s apparel exports to the UK were valued at nearly USD 550 million, which represents 3% of the UK’s total apparel imports.
“This underscores our presence in a highly competitive market, despite fierce competition from the other suppliers and road shows of this nature will help to promote an increase Sri Lanka’s apparel exports to the UK,” he said. This ambitious Source Sri Lanka event has a goal to increase Sri Lanka’s apparel exports to the UK at USD 1 billion by 2026.
“We also have to follow the present dynamics such as in the AI and the Fashion industry etc. and also the current trends in online purchase of apparel rather than buying in traditional way in person purchases.
“We noted that the online apparel purchase in the UK has been over 40% as the among the highest than the food, footwear, jewellery and beauty products etc. Nearly a 90% of young generation of the UK tends to purchase apparel products on line,” Bogollagama said.
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