World News | UK Asks Sri Lanka to Reduce Market Access Barriers; Ensure Ease of Business

Colombo, Nov 11 (PTI) The United Kingdom wants Sri Lanka to reduce its market access barriers and ensure ease of business, the British High Commission here said on Friday, amidst attempts being made by the island nation to overcome its worst-hit economic crisis.

The comments came as the UK's trade envoy Lord Davies completed his three-day visit to Sri Lanka on Friday during which several matters pertaining to Sri Lanka's trade and investment landscape were discussed between him and the Sri Lankan officials.

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Sri Lanka continues to suffer from its worst-economic crisis that has hit the nation's economy hard.

In its ongoing economic crisis, the government has restricted imports that include even raw materials requirements of industries.

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Davies, who held meetings with several Sri Lankan officials including Minister of Trade Nalin Fernando and Central Bank Governor Dr Nandalal Weerasinghe, stressed that Colombo is a valuable trading partner for the UK, with bilateral trade in 2021 worth 1 billion pounds.

"I've had some engaging conversations with government stakeholders and economic analysts on the necessity of free and open market conditions which the UK champions globally, along with discussions on overcoming economic challenges,” Davies was quoted as saying in a statement issued by the British High Commission.

He said the UK is keen to see Sri Lanka reduce market access barriers and improve ease of doing business which will further boost the UK-Sri Lanka trade and investment relationship.

Davies' visit happened as the UK parliament debated Sri Lanka's human rights and economic situation on Wednesday.

It urged to propose conditionalities on the proposed International Monetary Fund (IMF) assistance to Sri Lanka.

It called on Sri Lanka to reduce its military spending and remove the military from engaging in commercial activities.

Sri Lanka and IMF have reached a staff-level agreement for a USD 2.9 billion facility over four years.

The IMF board approval for the facility is being held up over the need to restructure debt.

While speaking on Thursday in the parliament President Ranil Wickremesinghe said the delay is over the debt restructuring talks with India and China.

In the past the government had to have discussions directly with the IMF, he said. "But this time we have to take this and talk with other countries. We are especially talking with Japan, then India and China,” Wickremesinghe told parliament.

Sri Lanka is nearly bankrupt and has suspended repaying its USD 51 billion foreign debt, of which it must repay USD 28 billion by 2027.

Sri Lanka, a country of 22 million people, plunged into financial and political turmoil earlier this year as it faced a shortage of foreign currencies.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)