FOCUSSRI LANKA

T H E P U B L I C A T I O N O F T H E E M B A S S Y O F S R I L A N K A , W A S H I N G T O N D . C .

VOL 01 | ISSUE 02 | DECEMBER 2013 | slembassyusa.org

LLRC: SRI LANKA’S OWN PROCESS FOR

RECONCILIATION

“DESPITE MUCH OF THE WORLD’S FOCUS

ON SRI LANKA’S PAST, SRI LANKA’S

FUTURE IS NOW”

FORTIFYING OUR STRENGTHS

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3

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14 Fortifying Our Strengths

06 LLRC: Sri Lanka’s Own Process for Reconciliation

Lalith Weeratunga, Secretary to the President and Chairman of the Task Force appointed to monitor the implementations made by the LLRC, discusses the progress thus far.

Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka shares his views of the future opportunities available for the country in the light of upcoming developments, the resilience of the economy, and the new momentum of growth.

18 “Despite Much of the World’s Focus on Sri Lanka’s Past, Sri Lanka’s Future is Now”

US and Sri Lanka have always had good relations though at times challenging. Ambassador Jaliya Wickramasuriya elaborates on this relationship and stresses the need for greater understanding where Sri Lanka’s present and future should be looked at in a positive manner.

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34 Ceylon Tea: Exploring Market Potential

38 Walters Bay: Never Compromise on Quality

36 Seylan Bank’s SFIDA A New Gateway for Investors

Janaki Kuruppu, Chairperson of the Sri Lanka Tea Board, speaks of the aggressive promotional plans to expand into other markets, in particular the United States.

Walters Bay re-defines Pure Ceylon Tea as the purest Ceylon tea available to consumers and backs up this claim in many dimensions.

With Sri Lanka emerging as a middle income country, development around the country has gathered momentum. A few of the many landmark developments in infrastructure have been highlighted in the cover.

Seylan Bank now offers to all investors of Sri Lankan origin living overseas the opportunity of investing in SFIDA (Special Foreign Currency Investment Deposit Account) through Seylan Bank accounts.

Cover Caption: Depiction of Sri Lanka’s development drive

Sri Lanka was the proud host of the 22nd

Commonwealth Heads of Government Meeting 2013 held between November 15–17 under the theme of Growth with Equity: Inclusive Development.

28 Commonwealth Heads of Government Meeting 2013 in Sri Lanka

EMBASSY OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKAChancery: 2148 Wyoming Avenue NW, Washington DC 20008

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The contents of this publication may not be reproduced in whole or part in any form without the written consent of the publisher.

DESIGNED BY BT OPTIONS (PVT) LTDwww.btoptions.com

Printer: Sharp Graphic House (Pvt) Ltd.

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LLRC: Sri Lanka’s Own Process For Reconciliation

The Lessons Learnt and Reconciliation Commission (LLRC) is Sri Lanka’s very own process to ensure that action required in the areas of international humanitarian law, human rights, land, return and resettlement, restitution/compensatory relief, and reconciliation takes place so that the recurrence of the past does not occur. Furthermore it is to ensure that the victims of the devastating 30 year long conflict find the answers to regain their lives, where Sri Lanka moves forward in this age of freedom and stability. Lalith Weeratunga, Secretary to the President and Chairman of the Task Force appointed to monitor the implementations made by the LLRC discussed the progress thus far.

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A LARGE NUMBER OF RECOMMENDATIONS FALL UNDER THE CATEGORY OF RECONCILIATION. THAT IS THE SPIRIT OF THE REPORT. ONE HAS TO FORGET THE PAST BUT THE PAST SHOULD NOT BE FORGETTEN TO THE POINT THAT YOU DO NOT LEARN FROM IT. THE PAST IS FORGOTTEN PURELY TO START A NEW FUTURE.

The implementation of the LLRC recommendations come under your purview. Can you elaborate on the National Action Plan that has been formulated for its implementation?

To put things in perspective, the LLRC report was handed over to His Excellency the President in November 2011. Then it was presented to Parliament a month later. However, by that time the Budget for 2012 had already been approved by Parliament. The reason as to why I say this is that we did not see much activity in 2012 as there were no funds allocated for the LLRC recommendations to be implemented.

Chapter 9 of the LLRC report contains 285 recommendations, there are of course some that overlap. In July 2012 the Government appointed a Task Force, to monitor the implementation of the recommendations. I was appointed as the Chairperson of this Task Force. Our job is to monitor 24 ministries and one department —that is the Attorney General’s Department —on the LLRC recommendations they have implemented and the process they have adopted. The Government understood that the whole process had to be driven and that is why I head this Task Force.

In the 2012 Budget, HE the President, allocated a total of 1,050 million rupees to ensure that these recommendations are implemented in a given time frame.

The time frame for implementation was determined in the following manner; the National Plan of Action is documented in two ways. One way is by department and ministries and the other is by thematic areas. There are five thematic areas: international humanitarian law issues, human rights, land return and resettlement, restitution/compensatory relief, and reconciliation.

A large number of recommendations fall under the category of reconciliation. That is the spirit of the report. One has to forget the past, but the past should not be forgetten to the point that you do not learn from it. The past is forgotten purely to start a new future. But the past is important so that we learn from the experiences that is why this is the Lessons Learnt and Reconciliation Commission; the whole idea is to learn from the past so that it does not recur. The National Plan of

Action for the implementation of LLRC recommendations came into being in July 2012.

Therefore, the bulk of the work was done in 2013 as there was an allocation for each activity. For each recommendation we have formulated a number of activities in consultation with the responsible departments and ministries. For each activity there is a partner agency, which is a ministry or department that is responsible for that activity. Then, we have to ensure that the respective activities have been successfully completed; for that we have key performance indicators. And, then of course progress. All this information is available on our website www.llrcaction.gov.lk and we update this site regularly.

Every six weeks or so, we update the international community in the form of diplomatic briefings with the Ministry of External Affairs. We discuss our progress as well as the areas that we cannot show progress and explain the reasons for the same. But there is a time frame for each activity. Sometimes it is about three years, the longest that I see is four years. We started in July 2012, therefore by 2016 July all activities in the Action Plan should be completed.

Can you elaborate on the role of the 24 ministries and one department involved in this process?

In relation to International Humanitarian Law and Human Rights, the main ministry involved is the Ministry of Defence, who will look into the accusations made against the Armed Forces. Courts of Inquiry have been conducted by the Army and the Navy thus far. One may say that we are asking the perpetrators to investigate these accusations. However, the Army, Navy and Air Force are empowered by the respective Acts of their institutions to hold such inquiries impartially. It is only after the Military inquiry that the civil procedures could be initiated. All reports have to be produced before the Attorney General who in turn will determine on whether further action needs to be taken. The Attorney General’s office will check if a person has to be charged and whether proper procedures were followed. We have our own judicial system, which is able to ensure that proper procedures are followed. But the

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preliminary inquiries have to be done by the respective agencies.

An international inquiry cannot be held in Sri Lanka, because it affects the sovereignty of this country. We have a very fine legal system with an institutional hierarchy system. These can be fully utilized.

The President appointed a Commission of Inquiry into disappearances. This Commission covers the period from June 1990 to May 2009. Anyone who has a grievance, anyone whose child, husband, wife or anyone has been abducted or has disappeared, or you fear they are dead, killed or missing or that they are arrested somewhere; all the details and complaints can be made to the Commission. It is headed by Maxwell Paranagama, former High Court

Judge and Member of the LLRC Panel and two others—Suranjana Vidyarathna, former Director General of the Department of Census and Statistics and Mano Ramanadan, Member of the LLRC Panel and Member of the Monitory Board, representing the Tamil community as well as women. They will not only sit in Colombo, but they will visit Kilinochchi, Mullaitivu, Jaffna, Mannar, Tricomalee and Batticaloa, where people can meet them and speak to them.

Land is one of the most complicated issues, because land was grabbed by the LTTE from the legitimate owner and given to someone else. Now that the war is over the legitimate owner comes back and makes a complaint to regain his land. The Government has to go through a rigorous

AN INTERNATIONAL INQUIRY CANNOT BE HELD IN SRI LANKA, BECAUSE IT AFFECTS THE SOVEREIGNTY OF THIS COUNTRY. WE HAVE A VERY FINE LEGAL SYSTEM WITH AN INSTITUTIONAL HIERARCHY SYSTEM. THESE CAN BE FULLY UTILIZED.

Sangupiddy Bridge

Nagapooshani Amman Kovil

Delft RoadJaffna Fort

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RECONCILIATION IS GIVEN A VERY

IMPORTANT PLACE IN THIS ENTIRE REPORT IF YOU

LOOK AT THE 285 RECOMMENDATIONS.

ONE OF THE MOST SIGNIFICANT IS

THE TRILINGUAL POLICY THAT

HIS EXCELLENCY THE PRESIDENT

INITIATED IN 2012, WHERE ABDUL

KALAM, FORMER PRESIDENT OF

INDIA WAS ALSO PRESENT AT THE INAUGURATION.

procedure to find out whether this person is making a legitimate claim and ensure that the right person receives the land. The work done by the Ministry of Land and Land Development is very encouraging, because you need to have certain institutional mechanisms set up and you need to empower the Divisional Secretary of the area to ensure that land can be handed over to its legitimate owners without much difficulty.

After a legitimate inquiry ownership can be established. By and large, most contentious issues in the land area have now been sorted. It will take another one or two years to sort the entire land issue in the North and East.

Anywhere in the country, if the Government wants to acquire land for a development activity they can acquire the land but the country’s citizens can always go to the Court of Appeal and ask for an injunction. If the Court of Appeal thinks that this is not the right thing to do, then the Court of Appeal can issue an injunction to the Government to not to take the land over. One thing is very clear, when the Government acquires land, under the State Land Ordinance it has to pay compensation. This is a very important point where the North is concerned. Whatever land that is taken for Government activity, compensation has to be paid.

Reconciliation is the primary aim of this entire process. If one reads the LLRC report carefully, it tries to create a conducive environment where all the ethnic groups living in Sri Lanka—Sinhalese, Tamils, Muslims or any other community—will live harmoniously. That is the total spirit of the report, so that there will not be any unfortunate incidents such as those that we have seen during the last 30 years.

Can you elaborate on the development work and reconciliatory efforts done so far?

Reconciliation is given a very important place in this entire report if you look at the 285 recommendations. One of the most significant is the trilingual policy that His Excellency the President initiated in 2012, where Abdul Kalam, Former President of India was also present at the inauguration. Sri Lanka envisages by 2021—eight years ahead that we will have a population in this country, which will be comfortable in using the two main languages. Education Authorities are responsible in making a legal framework to ensure that every Sinhala child will learn Tamil and every Tamil child will also learn Sinhala. That is

the only way you can bring about harmony because there has to be some way of communicating.

When there is a language barrier, and when people cannot understand each other, there is a lot of suspicion. This is what the LTTE capitalised on during the conflict. With the railway networks and roads inaccessible people from the North could not travel to the rest of the country and vice versa. Therefore the people in the North were isolated and that is what the LTTE required. The time has come for all communities to be able to live wherever they want to. The purpose of the LLRC is to ensure that recommendations are implemented to the extent that this harmonious living will come to being.

Language is a very important aspect and as a result, His Excellency the President appointed a Presidential Task Force for a trilingual initiative, which will ensure that people will not only learn the two languages but also additional measures such as to prepare grammar material, teaching material, conversational topics, train teachers and selection of books, will be looked into. Then we are planning on implementing a twin-school concept where a school in the North and another in the South will be partnered. The Task Force is certainly on

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a good trajectory and by 2021, at least 75 percent of the country—children and adults both will be able to converse in the two languages.

There is tremendous enthusiasm by the people of the various communities to learn the two languages, so this needs to be encouraged. This is what we mean by reconciliation. Ensuring that all communities can live harmoniously together.

What about the Parliamentary Select Committee?

The Parliamentary Select Committee has been mandated to find solutions to major national issues. This is the first time that such a Committee has been appointed. His Excellency the President has repeatedly invited the main opposition parties, including the TNA, to come and participate so that these matters could be discussed. Solutions must come from within the Parliament and no outside body can stipulate what is required for this country. This is the first time we are having a Parliamentary Select Committee, which will look into major national issues.

What should the solution be? Is it Devolution, then to what extent; should the Provincial Council system prevail or should there be a different system; are we to consider lower level devolution such as the Gramaraj in India to the Pradeshiya Sabha level; or should the Divisional Secretariat level make the required decisions for the area. There are many models in the world; but whatever model that is to be instituted in Sri Lanka has to be something that all of us design together. And, that has been the same with other countries as well.

Reconciliation, issues on devolution, political framework and power sharing—all need to come from the Parliamentary Select Committee and we have indicated that in our report. Once policies have been formulated, then we will certainly implement them. This has been detailed in the LLRC report as well.

What is the significance of the LLRC?The report itself is very important

and if implemented properly, Sri Lanka will never again see the devastation that we experienced during the 30-year long conflict. The LLRC National Plan of Action is there to ensure that the recommendations are given effect to. And, progress has to be monitored, pushed through and if there are any obstacles to the process then they will be removed. My task is to head the group of people who facilitate the LLRC

process. I am supported by a very able Vice Chairperson, Dhara Wijayatilake, who is presently the Secretary to the Ministry of Technology and Research and a former Secretary of Justice—who assist me in a great way. We have dialogues with our partner agencies regularly. We also discuss with small groups and individuals. We have identified liaison officers in these ministries, that is how the National Plan of Action moves forward.

The question on whether an international mechanism should be put in place need not be asked anymore as the LLRC has proved its worth. The members of the Commission were highly eminent personnel with good credentials. The Chairman was a former Attorney General who was known to be very independent. There was a good representation of women and all communities of the country, members of the judiciary and former foreign service officers. This committee never had any interference from the Government. The members were such that if there was any interference they would have resigned.

They listened to people, made their recommendations and handed the report to the President because the President appointed them. This was nothing like the Darusman report, where the members of that panel never visited Sri Lanka. The LLRC had in depth interviews and discussions with various people. They invited people in writing to give evidence, they travelled to the North and East and people were free to come and talk to them. There were many people who came and testified before the commission—sometimes against the Government, sometimes against the LTTE.

The world has clearly understood the authenticity and importance of the LLRC. The very recent visit of the UN Human Rights Commissioner made it very clear that what they are looking at is how well the LLRC is implemented. The question of having an international inquiry is not a demand made by the international community anymore. What they are demanding is the proper implementation of the LLRC. I want to tell you that the Government has done everything possible to ensure that the LLRC recommendations will be implemented. Of course this will require at least a time frame of four years, starting July 2012. There can be certain activities which may even go beyond. For instance, the trilingual policy cannot be fully implemented by July 2016, it will go on till 2021. However, activities have already started in every aspect of the LLRC recommendations.

THE WORLD HAS CLEARLY UNDERSTOOD THE AUTHENTICITY AND IMPORTANCE OF THE LLRC. THE VERY RECENT VISIT OF THE UN HUMAN RIGHTS COMMISSIONER MADE IT VERY CLEAR THAT WHAT THEY ARE LOOKING AT IS HOW WELL THE LLRC IS IMPLEMENTED.

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Can you elaborate on the development work done so far?

It is a well-known fact that the Government has given priority to the North in terms of development. For example the 280 km railway to the North—going up to KKS and also Thalaimannar and Trincomalee. These were very important railway lines that served the people of the North, and South as well. During the conflict the entire railway network was destroyed and the A9 was mined therefore, the people in the region were completely isolated.

The Government, as a priority measure, ensured that roads were done so that people could move freely. That is one way of bringing people together. After 25 years, the train service to Kilinochchi has been restored, then the Madu road has been completed and is now in operation. This will go up to Thalaimannar as well.

New hospitals and schools have been built while damaged ones have been reconstructed. I must also mention the work done by Hon. Basil Rajapaksa because he was the Chairman of the Presidential Task Force that worked tirelessly to bring normalcy to the North. Presidential Task Force on Resettlement and Reconstruction did a massive amount of work. Hon. Basil Rajapaksa worked behind the scenes, whatever we see now in the North is his work. There were regular meetings, briefings

and monitoring of all the work done. He is the one Minister who has visited the North the most in this Government. His work has paid off. Almost all the schools are functioning and hospitals are in good shape. If you look at the main teaching hospital in Jaffna, there are very good doctors and facilities. Therefore, work is happening.

Since the North required more investment, the Government spent much more funds on developing this region than any other part of the country. The President was very keen that all the work was completed. He as the Minister of Finance ensured that; water projects, sanitation, education, health, infrastructure projects such as building of harbours, roads, Government offices, Divisional Secretariats, offices of Government Agents as well as heritage buildings such as the Jaffna Fort have been completely redone. Even the UN High Commissioner on Human Rights paid a handsome compliment to the Government for the infrastructure development that has taken place.

According to the Central Bank, the economy of the Northern Province grew by 22 percent. But of course they started with a low base. The rest of the country grew at about six to eight percent. The reason being that the people in the area were able to deposit money, they are able to cultivate their land and fishermen are

Chunnakam Power Plant

Northern Railway

Hindu College, Kilinochchi

NEW HOSPITALS AND SCHOOLS

HAVE BEEN BUILT WHILE DAMAGED ONES HAVE BEEN

RECONSTRUCTED. I MUST ALSO

MENTION THE WORK DONE

BY HON. BASIL RAJAPAKSA

BECAUSE HE WAS THE CHAIRMAN OF THE PRESIDENTIAL

TASK FORCE THAT WORKED TIRELESSLY TO

BRING NORMALCY TO THE NORTH.

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able to go to sea. For 30 years there were restrictions on people fishing in the Northern seas. Unfortunately during that time the Indian fishermen—this is happening even today—came in large boats because our fishermen were unable to go to sea. Today, that restriction has been removed, but South Indian fishermen are poaching and fishing illegally in the Northern seas.

The credit of demining the massive land area that had been mined in the North, goes to the Sri Lankan Army. I remember at a meeting when His Excellency the President queried from a foreign demining team how long it will take, they said it will take 15 years, that was in 2009, which means that demining would have been completed in 2024. The Army took the risk, under the direction of Defence Secretary who has now transformed the entire army in to a development Army that did a commendable job in demining the land. The people may say withdraw the army from the North, but who would have done all the development work at the pace required. The Army transformed themselves overnight; to transform a fighting Army to a development army is a massive task. Nowhere else in the world has this been done before. The Sri Lankan Military is a disciplined force.

The situation in the North has reached almost 100 percent normalcy, except for

certain livelihood issues that need to be sorted. The development in the North is something that Sri Lanka can be proud of. His Excellency the President can be proud that he lead without any discrimination because he understood that it was not the fault of the Tamil people. The war was not against the Tamil people of this country, this is something I have to emphasize. The war was fought against a terrorist organization.

If we look at some of the numbers, the LTTE destroyed the very fabric of social life. Starting from 1976, they assassinated the first Mayor of Jaffna, Alfred Duraiappah. They assassinated the president, one prime minister, one leader of the opposition, presidential candidate Gamini Dissanayake, seven cabinet ministers including Lakshman Kadiragarmar. Furthermore, the LTTE has killed a large number of provincial politicians, Pradeshiya Sabha Chairmen and Members of Pradeshiya Sabha, 24 Tamil academics and intellectuals and moderate politicians. Therefore, one needs to understand that the Government never fought the Tamils, they fought against a terrorist organization that was destroying the lives of this country, especially in the North and within the Tamil community.

Therefore to understand the development in the North, people have to visit the area. And, that is why the

Kilinochchi StationNew Madhu Road Railway

Kinniya Bridge is the longest bridge in Sri Lanka

THE PEOPLE MAY SAY WITHDRAW THE ARMY FROM THE NORTH, BUT WHO WOULD HAVE DONE ALL THE DEVELOPMENTS WORK AT THE PACE REQUIRED. THE ARMY TRANSFORMED THEMSELVES OVERNIGHT; TO TRANSFORM A FIGHTING ARMY TO A DEVELOPMENT ARMY IS A MASSIVE TASK. NOWHERE ELSE IN THE WORLD HAS THIS BEEN DONE BEFORE. THE SRI LANKAN MILITARY IS A DISCIPLINED FORCE.

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Government invited people including foreign dignitiaries to visit the North and experience for themselves. What is there to hide? United Nations High Commissioner for Human Rights had unfettered access, she could go anywhere she wanted to. Whatever that is being said in Geneva is done so in isolation without seeing the situation in Sri Lanka.

Today, approximately 94 percent of the houses have now been provided with electricity. In the past they had only a few hours of electricity, which was supplied by generators. The supply of water too has been fully restored. The Chunnakam Power station is functioning. Industries can begin again. As such the North is now again part of the economic journey of the country, which is a fact that we can be very proud of.

Final thoughts.The progress that we have made in terms

of reconciliation and reconstruction need to be sustained. It is easy to do something, but it is difficult to sustain. This can only be achieved through the support of the people. We have to ensure harmony between communities. The Government, opposition or various society groups—they must not instigate people to fight against each other. Violence can be fired by just two or three words, it is very simple but what is the result? Everything that has been built over a period of time can be destroyed in a matter of minutes or a few days. We saw that in 1983. That can never happen in Sri Lanka again. No community wants that.

His Excellency the President in May 2009 made a very important statement when the struggle against terrorism was over. He said that there are no minorities in the country. Everyone is a Sri Lankan. The whole idea is to build a very strong resilient Sri Lankan nation and that will come through education, a good understanding and use of different languages and harmony amongst religions. We are a country where four major religions exist side by side without any issues.

I don’t even use the word war, because there was no war here. It was a struggle against terrorism and that’s what we had won. It was the resilience of the entire country. Everyone endured massive hardships. The Army, Navy, Air Force, Civil Defence Force and the Police who are the legitimate protectors of this country lost many people. Civilians too were lost. In 2006, I accompanied the President when he visited Kebithigollawa where a LTTE bus attack killed innocent civilians. Hardly any international organizations blamed the LTTE for this act. But today these very same

organizations are pointing the finger at the Government. Why did they not think about the innocent civilians at that time? What about innocent Tamils who were bystanders, who lost all their properties, lost their lives and also their dear ones. All communities suffered because of this conflict there is no question about that.

That is why the LLRC is an instrument through which we can bring back a deeper understanding in this country. Every citizen of this country wants peace. Education has a big role to play to ensure that every child is taught the importance of our multi ethnic and multi religious society. Let us understand each other. It is very important that we do not create mono ethnic areas. In Colombo and other parts of the country we have all communities living together. In the North there must be Sinhalese and Muslims—the LTTE chased other communities from the North creating a Tamil only area. Muslims were asked to leave within 24 hours. They were the first to be displaced as far back as 1990. This should never happen again.

We need to reflect on the past and learn from it. It is the responsibility of every citizen to ensure that terrorism never raises its head again in this country. Furthermore, the international community needs to understand that Sri Lanka has to be given the time and space to implement its own process for reconciliation and peace.

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The early part of the year 2013 was characterized by a sluggish growth in credit and somewhat slow economic activity, which prompted the Central Bank of Sri Lanka to ease its monetary policy stance in order to change those economic conditions. In keeping with such changes, towards the end of the year, the economic conditions had improved substantially, and consequently, there is much to look forward to, in the year 2014. Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka shares his views of the future opportunities available for the country in the light of upcoming developments, the resilience of the economy, and the new momentum of growth.

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Sri Lanka entered an interesting phase in 2012, where measures had to be taken to cool an overheating of the economy as a result of increased

demand after the conflict. The measures taken had worked, and over the course of the year 2013, the country was able to progress towards a strong growth path. “This is an important platform for us to launch ourselves towards a better and more sustainable growth model, from 2014 onwards,” affirmed Governor Cabraal, expressing his sentiments about the path that lies ahead. “I would describe 2012 and 2013 as two years where we have gone through a phase of consolidation and growth, thereby positioning us very well for a more pronounced growth momentum over the next few years.”

In the meantime, macrofundamentals such as inflation, interest rates, debt dynamics, unemployment, and infrastructure development have proceeded in the right direction, to position Sri Lanka as an attractive investment proposition for investors around the world. Much attention has been given to attracting investment to the identified five hubs: aviation, maritime, knowledge, energy and commercial, while tourism has also been given prominence as a major sector in furthering the investment agenda of the country. “It is not often that you find countries where benign trends have been seen in all macrofundamentals, at the same time. Therefore, I am quite happy with the progress, and in the next few years I believe we will be well poised to take advantage of that,” said the Governor. “These new advantages will create an enormous amount of opportunities for both local and foreign investors to have a very useful entry, as well as sustain their own investments in the Sri Lankan business landscape”, he added.

Sri Lanka is positioned, geographically, in a strategically significant location facilitating easy accessibility to the East and the West. Further, Sri Lanka is currently in a lead position regionally, due to high literacy, ease of doing business and soundness of all economic sectors. With all these important factors in place, along with an enhanced level of activity and high level in quality of service, the country is recognized, as a ‘natural hub’ in many sectors. In that connection, Governor Cabraal elaborated, “I believe Sri Lanka will continue to have the highest per capita income in the South Asian region in the years to come. We will also be a natural hub that can provide accessibility

as well as serve the entire region, and many investors will realize this strength. We also have good relationships with all our neighbors. While having good trading relationships, we now have free trade agreements with both India and Pakistan. I believe these factors would be reflected in the trade that will take place in the future.”

As a country, Sri Lanka possesses many unique features that sets it apart from others and these factors too will aid in the country’s growth path. The Governor details these factors as the strategic location, skills set, climate, natural beauty of the country, and a real economy that is vibrant. He believes that the skills set, especially in terms of English and IT, which are key areas in today’s progressing societies, have been at a high level while the amenable climatic conditions of the country has enabled many to visit, live, work and relax. “We have ensured that our infrastructure is developed at a very rapid pace, and today, Sri Lanka’s infrastructure particularly after CHOGM, has been enhanced to a very high degree. We have good locations and excellent properties, all of which makes the country very attractive.” Furthermore, taking into consideration the fact that Sri Lanka has a vibrant real economy, which is not limited to financial or business centers, offers many options for investors. The Governor further asserted, “We can be a country where we can support the concept of a financial hub or a business hub. At the same time, there is enough land, other resources as well as ample natural endowments in our country, which can help the country to provide good openings for economic activity for any type of investor. In all those areas, we have very special advantages, which will hold us in good stead for the future.”

In the meantime, Sri Lanka has been also making steady and positive progress in terms of its relationship with the United States. That progress is especially visible where the US has been a vibrant export market for high quality Sri Lankan products, and Sri Lanka has been an attractive destination for investment by US investors. The Governor stated that Sri Lankan exporters have been able to fulfill the stipulated conditions and requirements of the fastidious US markets by providing a level of production, quality, time and delivery that could be designated as “extremely competitive”, leading to a significant growth in the apparel and other merchandise markets. At the same time, the Governor added that, “in the government and private sectors, US Investment is flowing

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in, providing US investors a satisfactory and safe environment, to invest in an emerging nation in Asia. Accordingly, we have been able to ensure that Sri Lanka is an attractive destination for US investors while Sri Lankan exporters will find the US as a beneficial market to export their products and services.”

In order to strengthen the relationship between the two countries, many measures are also in progress, including Sri Lanka becoming a gateway to two of the largest markets in Asia, China and India.

Since Sri Lanka has provided useful tax and tariff advantages, “companies will also be able to set up businesses and use Sri Lanka as a gateway to China and India. That is something we would like to see being made use of, in the future”, explained Governor Cabraal.

Further, Sri Lanka is strengthening its export sector with enhanced production capabilities and quality, thereby creating a

sustainable path for more opportunities to penetrate the US market. “We also think there are opportunities for US tourism to drift towards Sri Lanka. There are many who come to India, and Sri Lanka should therefore be a natural extension for their tours and visits in the future. Accordingly, we are hoping that we will see more tourists arriving from the US”, added the Governor.

All in all, the year 2014 is expected to be the beginning of another growth era, with a projected GDP growth of around 8% every year for the next several years, with the budget deficit expected to reduce to 3.8% of GDP, by 2016. As Sri Lanka moves along a path of rapid economic development, leading to it reaching a USD 4,000 per capita income by 2015, Cabraal believes that the country will reach a status of a “preferred center” where many countries will treat Sri Lanka as a progressive and an economically active nation. “We have to improve our productivity, and our systems of communication must be on par with the rest of the world. Both matters are being attended to now. That is why, in time to come, we would play an active role in doing business in the region as well as being an important catalyst for economic activity across the world. We are looking forward to doing that,” he concluded.

THE YEAR 2014 IS EXPECTED TO BE THE BEGINNING OF ANOTHER GROWTH ERA, WITH A PROJECTED GDP GROWTH OF AROUND 8% EVERY YEAR FOR THE NEXT SEVERAL YEARS, WITH THE BUDGET DEFICIT EXPECTED TO REDUCE TO 3.8% OF GDP, BY 2016. AS SRI LANKA MOVES ALONG A PATH OF RAPID ECONOMIC DEVELOPMENT, LEADING TO IT REACHING A USD 4,000 PER CAPITA INCOME BY 2015.

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US and Sri Lanka have always had good relations though at times challenging. The countries are connected in both the economic and social spheres. Ambassador Jaliya Wickramasuriya elaborates on this relationship and stresses the need for greater understanding where Sri Lanka’s present and future should be looked at in a positive manner.

“DESPITE MUCH OF THE WORLD’S FOCUS ON SRI LANKA’S PAST,

SRI LANKA’S FUTURE IS NOW”

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OUR RELATIONS WITH THE US HAVE ALWAYS BEEN STRONG. HOWEVER THE END OF THE CONFLICT OPENED UP OPPORTUNITIES FOR A LARGE NUMBER OF AMERICAN BUSINESSES TO MOVE INTO SRI LANKA.

Could you please elaborate on the current status of Sri Lanka-US relations?

Contact between the people of the US and Sri Lanka are more than two centuries old. Sri Lanka has been a long standing friend and partner of the United States sharing common values and democratic traditions. In today’s context, our major aim is to project Sri Lanka’s true picture in the sphere of economic development, reconciliation, rehabilitation and redevelopment.

The US is the largest single export destination for Sri Lankan goods, being the market for 23% of our exports. Our exports

to the US demonstrated an impressive growth of 8.4% in 2012. According to the latest trade statistics, Sri Lanka’s exports to the US amounted to USD 2.36 Billion.

US Imports to Sri Lanka in 2012 were USD 224 million while total trade turnover between Sri Lanka and the US remained at all time high of USD 2.56 billion. The balance of trade is in Sri Lanka’s favor amounting to USD 2.1 billion.

The growth momentum demonstrated in 2012 is more significant particularly at a time when Sri Lanka’s export performance faced daunting challenges.

YEAR EXPORTS FROM SRI LANKA

USD MILLION

IMPORTS INTO SRI LANKA

USD MILLION

BALANCE OF TRADE USD MILLION

2010 1884 178 1600

2011 2134 307 1834

2012 2366 224 2144

IN THE AREA OF FOREIGN DIRECT INVESTMENT AND TOURISM, THE US IS BECOMING A VERY IMPORTANT PARTNER FOR SRI LANKA

SRI LANKA’S TRADE WITH THE US

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20In the context of the Government of Sri Lanka’s efforts in elevating the image in the global arena, how successful are you in promoting Sri Lanka in the US?

In the post conflict phase, the Embassy has been projecting Sri Lanka’s remarkable reconciliation process to the US audience. In this context, the domestic mechanism adopted by the Government of Sri Lanka namely the Lesson Learnt and Reconciliation Commission (LLRC) has been recognized by the US Administration. Moreover, the Embassy has projected Sri Lanka’s experience as a ‘best practice’ for the humane reintegration of combatants following armed conflict. Through the outreach activities of the Embassy we have projected Sri Lanka’s defeat of terrorism and quest for a unified pluralistic country.

With peace, emerged many opportunities for international businesses in Sri Lanka. The Embassy harnessed this conducive climate to showcase real business opportunities in Sri Lanka amongst US business leaders and captains of industry.

In this regard, the Embassy appreciates the cooperation received from the Office of the US Trade Representative and the US Department of Commerce. Collectively, we have sponsored and facilitated several investment conferences for US businesses interested in Sri Lanka. These highly productive networking sessions held both in Sri Lanka and in the US have generated much needed enthusiasm. Now we are starting to see the fruits of these endeavors, as some large American hotel companies, heavy equipment operators, energy companies and airplane manufacturers are keen to do business in Sri Lanka.

What are noteworthy features of the Embassy’s efforts in boosting US /Sri Lanka commercial relations?

Let me give some specific details which I believe are important. The Embassy arranged a number of business delegation visits from USA to Sri Lanka in association with the office of the United States Trade Representative (USTR).

Special business networking sessions and ‘one to one’ meetings were also held in Colombo promoting Private–Public Partnerships between the business leaders and captains of industry of the two countries. This included US corporate leaders from Boeing, Textron, EMD, John Deer, Starwood, Marriot International and Coca Cola.

In addition, a number of individual investor visits were also facilitated. These visits have brought immense benefits to Sri Lanka with large scale investments including in the tourism sector. I am pleased to say that Marriott International has already commenced hotel projects in Sri Lanka while Starwood Group has finalized an investment in establishing a Sheraton brand hotel in Colombo.

With regard to trade, efforts are under way to establish a US–Sri Lanka Business Council to promote increased economic and financial relationship to provide a platform for Sri Lanka and the US to discuss their favorable business and investment climates.

Sri Lanka’s export basket to the US is very diverse with the major concentration being apparel products. By looking at recent trade data, it is apparent that readymade garments continue to contribute 60% of the export revenue from the USA.

I commend the Sri Lanka Apparel industry for maintaining its predominance in the US market with quality products

BY LOOKING AT RECENT TRADE DATA, IT IS APPARENT THAT READYMADE GARMENTS CONTINUE TO CONTRIBUTE 60% OF THE EXPORT REVENUE FROM USA.

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manufactured under the highest ethical labor conditions in a green environment. Our apparel industry is regarded as total solution providers in the supply chain and they have earned a well deserved respect among US importers as highly dependable and trouble free partners while more than being mere suppliers.

The Embassy has always partnered the Sri Lanka Export Development Board and the Sri Lanka Apparel Industry at the Global Sourcing Forum organized by the Women Wear Daily (WWD) a prestigious apparel industry magazine in New York.

The event last held in October 2012 was a great success in highlighting the salient features of Sri Lanka’s apparel industry as

Garments without Guilt, and projecting Sri Lanka as the World’s number one ethical sourcing destination for apparel.

Participation at US Trade Fairs The Embassy continues to facilitate

the participation of Sri Lankan exporters, Government agencies such as the Sri Lanka Export Development Board, National Gem and Jewellery Authority of Sri Lanka and Sri Lanka Tea Board at trade fairs and events in the US. Assistance is also extended in arranging Sri Lanka pavilions at Fancy Food Show, ICT, Food Expo and Las Vegas Gem Show and Magic Show for Apparel Products in Las Vegas.

Ambassador Jaliya Wickramasuriya and Priyanga Wickramasuriya with the officials of the University of Kentucky during their visit to the University

Ambassador Jaliya Wickramasuriya and and Priyanga Wickramasuriya with U.S. Secretary of State Hon. John Kerry

Ambassador Jaliya Wickramasuriya with Vice President of the United States Hon. Joe Biden

Ambassador Jaliya Wickramasuriya with Assistant Secretary of International Affairs and Chief Diplomatic Officer for the Department of Homeland Security, Alan Bersin during a meeting at the Embassy.

Ambassador Jaliya Wickramasuriya met with Chairman of the United States House Foreign Affairs Committee Congressman Ed Royce and updated him on the progress being made in Sri Lanka’s post-conflict reconciliation process and economic development. Congressman Royce is the U.S. Representative of California’s 39th congressional district.

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22More emphasis should be devoted

to actively participate in US Trade Fairs as they are an effective marketing tool in penetrating the US domestic market. The US fairs are very important as it covers the entire region in North America and South America; I mean the Latin American and Caribbean countries as well. I invite Sri Lankan exporters to consider these options seriously.

The Embassy in association with the Sri Lanka Tea Board has embarked on another initiative to aggressively promote Ceylon Tea in the US market. Although the US is the world’s second largest importer of tea, Ceylon Tea constitutes only a small portion i.e 3% of the total imports of tea into the US market. Although we are gaining an incremental growth in this vital sector, a more aggressive marketing approach is a must.

In order to identify each other’s potential as partners of the tea industry; the Embassy has also initiated a media campaign to

renewal. This is the thirteenth time that the suspension occurred since its introduction in 1974.

All 127 beneficiary countries are hopeful that the US-GSP program will be reinstated by the US Congress. The Sri Lanka Embassy is an active member of the Alliance of GSP Countries (A-GSPC), which was formed on May 15 , 2013 in order to advocate for seamless renewal of the Generalized System of Preferences (GSP) program prior to its expiration on July 31, 2013. The Alliance is comprised of twenty geographically and economically diverse countries.

Once the GSP program is reinstated, the US importers are entitled to claim back the import duty which was paid for GSP eligible products from 127 beneficiary countries that include Sri Lanka.

What is the current status of the US-Sri Lankan Labor Practice Review ?

At one point, based on a labor petition against Sri Lanka, the US authorities conducted a review of Sri Lanka’s GSP eligibility. The Embassy intervened proactively to apprise the US Authorities regarding current labor practices in Sri Lanka to secure duty free benefits for eligible products from Sri Lanka in consultation with all the Sri Lankan stake holders.

As a result of Sri Lanka’s proactive engagement with the US authorities, the US government formally closed the GSP Worker Rights review of Sri Lanka without any change to Sri Lanka’s GSP trade benefits in June 2012.

This is a tremendous achievement for Sri Lanka and it ensured that Sri Lankan Exporters would continue to benefit with duty free access for GSP Eligible Products to the US market.

It is pertinent to say that Sri Lanka was the only country to achieve this important milestone in the recent past. Then US Trade Representative, Ambassador Ron Kirk while announcing the closure of the petition said, “The closure of the GSP country practice review of Sri Lanka was based on the Sri Lankan government’s noteworthy efforts over the past few years to address the worker rights issues outlined in the GSP petition”. This significant achievement is a clear testimony to indicate Sri Lanka’s commitment to ensure improved worker rights.

The duty free access under the US GSP program is extremely significant for Sri Lankan exporters. The total value of Sri Lankan exports to the US under the GSP program amounted to US $ 156 Million in 2012 demonstrating a 14% increase

ALL 127 BENEFICIARY COUNTRIES ARE HOPEFUL THAT THE US-GSP PROGRAM WILL BE REINSTATED BY THE US CONGRESS. THE SRI LANKA EMBASSY IS AN ACTIVE MEMBER OF THE ALLIANCE OF GSP COUNTRIES

popularize Ceylon Tea in the US market. Effective and regular participation at Trade fairs is planned and the Embassy in coordination with the Sri Lanka Tea Board organized the Ceylon Tea pavilion in the Summer Fancy Food Show which was held in New York.

How are you preparing Sri Lanka exporters to meet the requirements of Food safety standards under the Food Safety Modernization Act?

The Embassy in association with the Sri Lanka Export Development Board and the Department of Commerce was proactive in taking concerted action to inform the latest regulatory requirements under the US Food Safety Modernization Act, the Embassy facilitated another awareness seminar on the US Food Safety regulations in Sri Lanka in August 2013.

What is the Current Status of US GSP program?

Currently US GSP program is temporarily suspended pending US congressional approval for its

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compared to 2011. This is a clear illustration of the growth potential for Sri Lankan exports under US GSP.

Once the US GSP program is reinstated Sri Lanka will continue to receive duty free market access for nearly 4,000 products under this program.

Can you give a concise description of the Embassy’s interaction with the concerned US stakeholders?

At the outset, I must emphasize that the Embassy has an excellent working relationship with US government agencies in particular the US State Department. The US State Department is a vast institution and we have been able to develop a very good understanding with the various bureaus of the State Department. With their assistance we have achieved and resolved many issues pertaining to Sri Lanka.

There may be different perceptions on the business environment of Sri Lanka. What is important are the independent international indexes, which speak on Sri Lanka’s continuous improvements on the business environment and its competitiveness.

I always highlight how Sri Lanka’s position has improved significantly in the international arena in recent years.

n Human development as shown by UNDP compiled Human Development Index (HDI) is the highest in the South Asian region ranking at 97 out of 187 countries.

n As per the doing business index of the World Bank and the IMF, Sri Lanka has ranked highest in the region at 81 in 2013 up from 89 in 2012. Given the emphasis placed by the government to develop the doing business environment in the country, we are confident that Sri Lanka will be able to reach great heights in this ranking in the near future.

n All other internationally comparable indicators such as Index of Economic Freedom (ranked 97 compared to 111 in 2009), Corruption perception index (ranked 79 in 2012 compared to 97 in 2009), and Global competitiveness index (ranked 68 in 2012 compared to 79 in 2009) show a rapid improvement.

n Sri Lanka has been in the international capital market by issuing sovereign bonds since 2007, attracting increasing number of global investors. The sovereign bond issue in 2012 was very successful, the one billion bond being oversubscribed by 10.5 times. Over 400 investors participated and the coupon was the lowest at 5.875%.

Ambassador Jaliya Wickramasuriya, met with José Antonio Meade Kuribreña, the Secretary of Foreign Affairs of Mexico at the presidential inauguration ceremony in Mexico.

Co- Chair of the US-Sri Lanka Congressional Caucus Congressman Robert Aderholt addressing the 65th Independence Day Celebration of Sri Lanka in Washington DC. Congressman Aderholt is the U.S. Representative for the 4th congressional district of Alabama.

University of Kentucky President Dr. Eli Capilouto welcomes Sri Lankan Ambassador Jaliya Wickramasuriya and Priyanga Wickramasuriya for a reception at Maxwell Place in Lexington, Kentucky. The Ambassador visited the University of Kentucky to initiate academic collaboration in a cancer research project between Sri Lanka and the United States.

Ambassador Wickramasuriya with Rep. Chris Van Hollen (D- Maryland) Ranking Member on the House Budget Committee and Co- chair of the Sri Lanka Caucus”Bersin during a meeting at the Embassy

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24The yield rates of all bonds have been coming down showing confidence of investors on the SL economy.

n Even with heightened global uncertainties, SL was able to maintain sovereign ratings assigned by all major Rating agencies.

n The World Justice Project, an independent non-profit organization based in Washington, DC, recently ranked Sri Lanka first in South Asia in six of eight categories of the 2012-2013 Rule of Law Index. Sri Lanka ranked first in the region for absence of corruption, fundamental rights, open government, regulatory enforcement, civil justice, and criminal justice. (Sri Lanka ranked second in South Asia for limited government powers, and third in South Asia for order and security).

These international indicators are a good testimony to understand Sri Lanka’s due place.

What are the common issues that US businesses face in Sri Lanka?

If I give my candid opinion, I must say that US investors whom I have met after their visits to Sri Lanka are very positive. Their understanding is very much in line with international indicators which I highlighted previously. However, I must concede that there are a few areas in which that we should make some improvements.

Environment assessment clearance and approvals in the hands of local authorities need to be fast tracked. But at the same from a country perspective, we must always look into proper environmental impact assessment. From the feedback I get it is encouraging to note that in terms of customs procedures, EPF/ETF contributions, tax administration, Sri Lanka is far ahead of its regional peers.

If there are areas that need improvement, what are those and are you working on those areas, so that Sri Lanka can boost its economic relations?

The approach we should adopt in regard to this important question is to have a clearly defined Nation Brand for Sri Lanka. If I may further elaborate, a clearly defined Nation Brand is imperative in order that global perceptions of a country including its goals, policy and achievements are understood by stakeholders around the world which includes our largest single export market, the US.

The Nation Brand is not simply a slogan or ad campaign, but is a way to

communicate effectively the tremendous potential that we in Sri Lanka offer to the world. How I envision the Nation Brand is to achieve following key objectives i.e promoting the export of Sri Lanka’s products and services, promoting Sri Lanka as an international Investment destination, and promoting inbound tourism to Sri Lanka. In short, the objective of nation branding is to promote the economy, tourism and the international status of Sri Lanka.

In promoting Sri Lanka’s ‘soft power’ such as trade, investment, tourism and culture, we need to effectively coordinate the strategy, which should be formulated collectively though an inter agency mechanism whereby Sri Lanka Tourism, Board of Investment of Sri Lanka, Sri Lanka Tea Board, Sri Lanka Export Development Board, Gem and Jewellery Authority of Sri Lanka, Sri Lanka Handicraft Board and SriLankan Airlines work in a coordinated manner under the Nation Brand.

What are the prospects to promote tourism in USA?

USA is among the first 10 sources of origin of tourists to Sri Lanka. Compared to 2011, the arrival of US tourists to Sri Lanka in 2012 is indeed very impressive. This shows a 25% increase compared to the same period in 2011.

These achievements are not in isolation. The Embassy has worked tirelessly to promote Sri Lanka as a preferred destination for US travelers. I am pleased to state that Sri Lanka Tourism recognized the Embassy’s outstanding achievements in its tourism promotional activities in USA at the Tourism Award Ceremony in 2012.

Our short term objective is to increase this number to 45,000 within the next three years while expecting, in the long term, arrivals of approximately 100,000 by 2017.

The Embassy plans to achieve above objectives by adopting the following measures;

n Building awareness of Sri Lanka as a Leisure, Sports, Adventures, Eco Tourism and business travel destination to meet the government’s goal of 2.5 million tourists by 2016.

n Generating and continuing positive media coverage through Electronic, Print and Social Media positioning Sri Lanka as the world’s most treasured island.

n Combating negative perceptions and impediments to travel.

The Embassy has undertaken a series of well coordinated events to promote

THE EMBASSY HAS WORKED TIRELESSLY TO PROMOTE SRI LANKA AS A PREFERRED DESTINATION FOR US TRAVELERS... OUR SHORT TERM OBJECTIVE IS TO INCREASE THIS NUMBER TO 45,000 WITHIN THE NEXT THREE YEARS WHILE EXPECTING, IN THE LONG TERM, ARRIVALS OF APPROXIMATELY 100,000 BY 2017.

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Sri Lanka. It is imperative for us to inform US visitors what they could expect by visiting Sri Lanka.

I always believe that distance is not the only reason that reflects a low turnout of US tourists to Sri Lanka. It is incumbent upon us to showcase what Sri Lanka could offer to a foreign tourist. Young US tourists are very adventurous. They need to go to places, which can offer special attractions.

For example, with Arugam Bay emerging as one of the world’s premier surfing destinations more surfers consider Sri Lanka. Moreover, wildlife, the elephant orphanage, UNESCO declared 8 world heritage sites in the country and beautiful beaches are universally known. Promoting medical tourism, which would include Ayruvedic treatments could also be a consideration to attract more tourists to Sri Lanka.

The Embassy organized a group of visitors including travel journalists for the ceremonial opening of Mattala Rajapaksa International Airport in Hambantota, Southern Sri Lanka in March 2013 .

What plans do you have as the Ambassador to promote both countries in terms of friendship?

We will continue our proactive engagement with key members of Congress

and senior policy makers of the Executive Branch of the US Government as influencing issues relating to US-Sri Lanka bilateral relations. This includes expanding and better leveraging the Congressional Caucus on Sri Lanka and holding congressional briefings with members of key Senate and House Committees.

I regularly meet with Congressman Ed Royce, Chairman of the United States House Foreign Affairs Committee in Washington and briefs Rep. Royce on the latest progress of Sri Lanka’s post-conflict rebuilding and reconciliation activities and also make him aware of the opportunities present for US companies.

The Embassy also regularly briefs Rep. Eni Faleomavaega (D-American Samoa), Ranking Member of the House Foreign Affairs Subcommittee on Asia and the Pacific who publicly called on the US government for fair and equitable treatment towards Sri Lanka on the conclusion of his visit to Sri Lanka.

What steps have you taken to establish academic and cultural exchange opportunities with US Universities/Think Tanks?

The Embassy is vigorously pursuing identifying mutually beneficial relations

United States Deputy Assistant Secretary of State Dr. Alyssa Ayres with Ambassador Jaliya Wickramasuriya and Priyanga Wickramasuriya at the 65th Independence Day Celebration of Sri Lanka in Washington DC.

Ambassador Jaliya Wickramasuriya and Priyanga Wickramasuriya with Congressman Eni F.H. Faleomavaega at the 65th Independence Day Celebration of Sri Lanka in Washington DC.

The group of visitors led by Ambassador Jaliya Wickramasuriya in the first international flight to the Mattala Rajapaksa International Airport at the airport inauguration ceremony. The tour was organized by the Embassy of Sri Lanka in Washington DC as part of its dynamic country promotion program. Over 100 travelers including Sri Lankan American community leaders, business leaders, US investors, academics, travel writers and media personnel from 30 major cities of the United States joined the special flight at their own cost to witness the historic inauguration of Sri Lanka’s second International Airport.

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26with a broad segment of US academic institutions, for example. We have had extensive discussions with the University of Kentucky (the UK) to initiate formal academic partnerships between the UK and selected Sri Lankan universities.

Towards this end , I visited the University of Kentucky in Lexington to facilitate academic affiliation between the University of Kentucky, the University of Peradeniya, and the National Cancer Institute of Sri Lanka and had in depth discussions with University President Eli Capilouto and faculty members to explore further collaboration on the proposed joint cancer research project that would be undertaken in Sri Lanka.

A Memorandum of Understanding was also discussed on moving the project

senior civil servants, government officials and academics from the world over. Executive Director for the Georgetown Institute for Women, Peace and Security and Former US Ambassador-at-Large for Global Women’s Issues, Melanne Verveer delivered the keynote address.

Arranging Scholarships for Sri Lankan teenage students affected by Terrorism in the past. The Embassy was able to secure an annual training program for war-affected teenage children to visit the USA to participate in a Harvard-designed conflict resolution program organized by the Tuesday’s Children, a US based NGO under its Common Bond Project (PCB).

Tuesday’s Children, a nonprofit family service organization founded by family and friends of the 9/11 victims, was initially established to look into the needs of every family who lost a loved one in the terrorist attacks of September 11, 2001. They later broadened their mission to reach beyond the events of 9/11 to support youth worldwide who have lost a loved one due to terrorism. Sri Lanka participated in this program for the past three consecutive years.

A five member Sri Lankan student delegation participated in the 2013 program which was held from July 23 to August 2, 2013.

Can you elaborate on the first ever Embassy live web conference, which was a new milestone in Sri Lanka’s public diplomacy? The Embassy of Sri Lanka Washington DC brought Sri Lanka’s public diplomacy to new heights in its latest community outreach program incorporating new technology. We connected with Sri Lankan American community leaders across the United States in the Embassy’s first ever live Web Conference hosted from the Sri Lanka Residence on Sunday July 29, 2013. Prominent Sri Lankan American community members of New Jersey, Texas, Maryland, Virginia, District of Columbia and Hawaii joined the Ambassador in an interactive and productive discussion on US-Sri Lanka relations. Sri Lanka’s Honorary Consul in Hawaii Dr. Kusuma Coorey, Honorary Consul in Texas Dr. Bandula Wijey and Honorary Director for Sri Lanka Tourism in the USA, Dillan Ariyawansa of New Jersey co-hosted the event at their respective residences.

Sri Lankan American Community leaders from Maryland, Virginia and the District of Columbia assembled at the Sri Lanka Residence. ·

THE EMBASSY OF SRI LANKA WASHINGTON DC BROUGHT SRI LANKA’S PUBLIC DIPLOMACY TO NEW HEIGHTS IN ITS LATEST COMMUNITY OUTREACH PROGRAM INCORPORATING NEW TECHNOLOGY.

forward expeditiously for mutual benefit and the Embassy has pledged its fullest support for this important project.

The proposed joint cancer research and other collaborative efforts under this program will not only build educational excellence and training capabilities in Sri Lanka, but these projects also bring enormous benefit by alleviating the suffering of affected people and by taking appropriate preventive measures. A four member team from the University of Kentucky visited Sri Lanka in August 2013 on a fact finding mission.

Fostering closer interaction with eminent US think tanks, the Embassy hosted a dinner reception for the delegates of Women in Public Service Project Institute at the Sri Lanka Residence, Washington in July 2013. The Women in Public Service Institute at Bryn Mawr College is a two-week program for emerging women leaders from post-conflict countries organized by Bryn Mawr and co-sponsored by the US State Department, and the Woodrow Wilson Center as part of the Women in Public Service Project (WPSP).

The participants of this program were made up of women parliamentarians,

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Deputy Chief of Mission Ambassador Esala Weerakoon opened the session welcoming the participants. He said in his remarks that the Embassy’s initiative to tap the far-reaching and boundless capabilities of digital diplomacy would set a new benchmark for Sri Lanka’s diplomatic outreach.

The Ambassador expounded on the purpose of the conference, that it is to keep Sri Lankan Americans informed of the activities undertaken by the Embassy to expand bilateral relations between Sri Lanka and the United States. The discussion was intended to explore the possibilities of their involvement in complementing the Embassy’s efforts.

Ambassador briefed the participants at length about the historical context of US–Sri Lanka relations, unstinted support rendered by the United States during Sri Lanka’s ordeal against terrorism and assistance in post-conflict development and reconciliation in Sri Lanka.

The Ambassador appreciated the genuine support received from the US in terms of technology, training, intelligence sharing and curbing the activities of LTTE

front organizations on US soil has been vital for Sri Lanka’s success in overcoming terrorism. Touching on the areas of post- conflict development Ambassador opined that Sri Lanka’s achievements in reconstruction, resettlement, rehabilitation, reintegration and reconciliation are unprecedented.

“Despite much of the world’s focus on Sri Lanka’s past, Sri Lanka’s future is now. Through the work that has been done so far, Sri Lanka has been a role model in the process of rebuilding and reconciliation.

Ambassador highlighted some of the country’s achievements including rehabilitation and de-radicalization of approximately 12,000 ex-combatants plus 600 child soldiers, clearance of land mines, resettlement of nearly 300,000 internally displaced persons, colossal infrastructure development projects underway, conduct of democratic elections, and the implementation of the recommendations made by the Lessons Learnt and Reconciliation Commission (LLRC) which has been developed into a National Plan of Action.

Ambassador Jaliya Wickramasuriya and Priyanga Wickramasuriya welcome Donald Camp, a retired U.S. senior diplomat and a Think Tank at the Center for Strategic and International Studies (CSIS), to the 65th Independence Day Celebration of Sri Lanka, Washington DC.

Ambassador Jaliya Wickramasuriya and Priyanga Wickramasuriya with their daughter Sarindee and son Janith.

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Sri Lanka was the proud host of the 22nd Commonwealth Heads of Government Meeting 2013 held between November 15–17 under the theme of Growth with Equity: Inclusive Development. Representing HM Queen Elizabeth, HRH The Prince of Wales graced the occasion as the Head of the Commonwealth while HE President Mahinda Rajapaksa assumed the Chairmanship leading up to CHOGM 2015. This was the first time in 24 years that CHOGM was hosted by an Asian country and 50 out of the 53 nations in the Commonwealth participated where 27 countries were represented by the Heads of State or Government.

Commonwealth Heads of Government Meeting 2013 in Sri Lanka

The Heads of Government and their representatives posing for the official photograph at the Opening Ceremony of the Commonwealth Heads of Government Meeting (CHOGM), at Nelum Pokuna, Mahinda Rakapaksa Theatre, Colombo

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The opening ceremony was held at the Nelum Pokuna Mahinda Rajapaksa Theatre showcasing the Sri Lankan culture and

values, after which the Bandaranaike Memorial Conference Hall (BMICH) served as the main conference venue and the venue for meetings of the Heads of the Government. The Commonwealth Business Forum was held between November 12–14 at the Cinnamon Grand Colombo and provided a platform to discuss and learn aspects related to the business sector of the Commonwealth nations. The Youth Forum, which was another important

The Spouses of Foreign Dignitaries who attended the Commonwealth Heads of Government Meeting (CHOGM) 2013

segment of the CHOGM was held at the newly constructed International Convention Centre in Hambantota and was the first event to be held since its inception.

The CHOGM was successfully concluded on November 17, after fruitful discussions and agreements related to the core values of the Commonwealth, development, biological diversity, international trade and investment, G20, Political values, global threats and challenges, Commonwealth collaboration and organizations, future meetings and many more current and relevant topics.

THE CHOGM WAS SUCCESSFULLY CONCLUDED ON THE 17TH OF NOVEMBER AFTER FRUITFUL DISCUSSIONS AND AGREEMENTS RELATED TO THE CORE VALUES OF THE COMMONWEALTH...

Prince of Wales and the Duchess of Cornwall being welcomed

Prince of Wales given a warm welcome by Minister Nimal Siripala de Silva

Prince of Wales signing the Special Guest Book at the Visitors Lounge

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COMMONWEALTH YOUTH FORUM

COMMONWEALTH PEOPLE’S FORUM

COMMONWEALTH BUSINESS FORUM

Delegates of the Commonwealth Youth ForumInauguration of the Commonwealth Youth Forum, Hambantota

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COMMONWEALTH HEADS OF GOVERNMENT IN SRI LANKA

Prime Minister Gordon Darcy Lilo, of Solomon Islands called on President Mahinda Rajapaksa for bilateral discussions in Colombo

Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah Sultan and Yang Di- Perduan of Brunei Darussalam

Prime Minister Moana Carcasses Kalosil of Vanuatu called on President Mahinda Rajapaksa

Prime Minister Lee Hsien Loong of Singapore called on President Mahinda Rajapaksa

Dato Sri Mohd Najib Tun Abdul Razak, Prime Minister of Malaysia

Prime Minister David Cameron of the United Kingdom called on President Mahinda Rajapaksa

The Prime Minister Siale’ataongo Tu’ivakano of Tonga called on President Mahinda Rajapaksa

President Paul Kagame of Rwanda called on President Mahinda Rajapaksa

President Jacob Gedleyihlekisa Zuma of South Africa welcomed by President Mahinda Rajapaksa

Prime Minster John Key of New Zealand called on President Mahinda Rajapaksa

President James Alix Michel of Seychelles called on President Mahinda Rajapaksa

Prime Minister Tony Abbott of Australia called on President Mahinda Rajapaksa

Governor of Tuvalu Lakoba Taeia Italeli called on President Mahinda Rajapaksa

President Baron Waqa of Nauru called on President Mahinda Rajapaksa

Secretary General of the Commonwealth Kamalesh Sharma

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SPEECH BY HIS EXCELLENCY MAHINDA RAJAPAKSA AT THE INAUGURATION CEREMONY OF CHOGM 2013

Most Venerable Maha Sangha and other religious dignitaries, Your Royal Highnesses, the Prince of

Wales and the Duchess of Cornwall, Fellow Heads of Government, Commonwealth Foreign Ministers, Secretary General of the Commonwealth, Excellencies, Ladies and Gentlemen,

A warm welcome, to the opening ceremony of the 22nd Commonwealth Heads of Government Meeting. It is my pleasure to welcome to Sri Lanka, Your Royal Highnesses, the Prince of Wales and the Duchess of Cornwall, fellow Commonwealth Heads of Government, Foreign Ministers, spouses of visiting dignitaries, delegates and special invitees.

Your Royal Highness, the Prince of Wales, representing the Head of the Commonwealth, Her Majesty Queen Elizabeth the Second, is no stranger to Sri Lanka. In fact, Your Royal Highness’s Trust has funded several social development projects here. I am sure Your Royal Highness will carry pleasant memories of this visit to our country. I also wish to thank the outgoing chairman of Australia for extending all the support to make this CHOGM a success.

Hosting this meeting is a historic occasion for Sri Lanka and also a privilege to Asia as CHOGM returns to this region after twenty four years. As one of the eight founding members of the modern Commonwealth, Sri Lanka is deeply honoured to host this event and extremely thankful to all of you who have been firm in your support and understanding of the related complexities in Sri Lanka’s post conflict phase. This confidence reposed by you in my country will greatly assist me in steering the Organisation’s future in the best interest of our peoples.

We in Sri Lanka are stepping into a new era of peace, stability and renewed economic opportunities that have been long denied to my people, due to the menace of terrorism that existed for nearly three decades. In ending terrorism in 2009, we asserted the greatest human right, the right to life. I am happy to state that in the past four years, there has not been a single terrorist related incident, anywhere in Sri Lanka.

Excellencies and Friends,There is a multitude of global challenges,

arising from the uncertainty of the socio economic conditions, faced by our nations

today. We, in the Commonwealth, must therefore collectively find means of effectively addressing these challenges to safeguard the values we hold dear.

It is in recognition of the urgent need to address the burning issues connected to growth and development, which directly impinge on the lives of our peoples, that Sri Lanka proposed the theme, “Growth with Equity: Inclusive Development” for this CHOGM.

We believe that this theme has broad relevance to the larger Commonwealth, and highlights the importance of equity in economic development, particularly in view of the existing disparities in the distribution of wealth, and economic benefits. Inclusive development promotes progress and contributes towards achieving Millennium Development Goals. In the case of Sri Lanka, our current policy agenda, the Mahinda Chintana, Vision for the Future, spells out clear strategies of improving the livelihoods of our people, ensuring that economic and social benefits reach every strata of society, and more importantly, taking Sri Lanka into the future, by aiming to be the ‘Wonder of Asia’.

I am happy to say that Sri Lanka has achieved success on a range of social indicators that comprise the MDGs, despite being a lower middle income country. Absolute poverty in Sri Lanka declined from 15.2 percent in 2007 to 6.5 percent in 2012, surpassing the MDG mid-term target. While reaching out to care for all our people’s needs, the Government has also taken a pro-active approach, to post-conflict reconstruction and reconciliation.

Your Royal Highnesses, Fellow Heads of Government, Excellencies, and friends,

Faced with tough challenges, we, in the Commonwealth, need to ask ourselves, a few questions.

First, can we realistically say that the need for basic facilities, healthcare, education, productive employment, access to food and safe drinking water, eradication of poverty and hunger, are of lesser importance than political concerns?

Second, should not the Commonwealth, collectively strive towards the realisation of development goals, to enable its member countries to reap economic benefits?

Third, shouldn’t we be addressing more vigorously the issue of ‘common poverty’ before we talk about ‘common wealth’?

As a matter of priority, we, in the Commonwealth, should focus on

WE IN SRI LANKA ARE STEPPING INTO A NEW ERA OF PEACE, STABILITY AND RENEWED ECONOMIC OPPORTUNITIES THAT HAVE BEEN LONG DENIED TO MY PEOPLE, DUE TO THE MENACE OF TERRORISM THAT EXISTED FOR NEARLY THREE DECADES. IN ENDING TERRORISM IN 2009, WE ASSERTED THE GREATEST HUMAN RIGHT, THE RIGHT TO LIFE.

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development challenges, confronting the majority of our member nations. I see a compelling need for those who guide the destiny of the Commonwealth to give serious thought to practical modalities, focusing on social and economic issues. This will greatly enhance the relevance and value of the Commonwealth.

Particular emphasis on the well-being of women and children is necessary. There is, as well, the acute need for awareness of both the potential and the risks attendant on Information Technology.

Although economic priorities take centre stage, let us not forget that people are the greatest wealth of our nations. Strengthening the quality of human capital will help countries to achieve sustained growth. Greater people-to-people contact within the nations of the Commonwealth, as well as taking the objectives of the Commonwealth to the most remote sections of our populations, is also important.

CHOGM 2013 will provide the opportunity for us to assess the Commonwealth’s achievements with regard to development goals. If the Commonwealth is to remain relevant to its member countries, the Association must respond sensitively, to the needs of its peoples and not let it turn into a punitive or judgmental body.

We must also collectively guard against bilateral agendas being introduced into the Organisation, distorting Commonwealth

traditions and consensus. The strength of the Organisation lies in keeping the member countries together, helping one another in a spirit of partnership, making the Commonwealth truly unique.

Excellencies,Our deliberations in Colombo must

lead to the greatest practical benefits for the peoples of a renewed Commonwealth, one that is engaging, collaborative and unifying, rather than prescriptive and divisive.

In December last year, the Charter of the Commonwealth comprising the values and aspirations shared by all members of the Organisation was adopted. To us in Sri Lanka today, they continue to be relevant, as we usher in a new era and also because all religions we follow in Sri Lanka have taught us to uphold the highest human values.

Finally, I wish to quote the words of the Buddha, the Enlightened One:

“Na pa resan wilomani,Na pa resan katakatan,Attanova avekkeiya,Katani aka thanicha”‘Let not one take notice of faults of other’s

or what they have done or not done. Let one be concerned only about what one has done and left undone.’

Whilst looking forward to a fruitful and constructive engagement, I wish all of you, a very pleasant and an enjoyable stay in our country.

May the Noble Triple Gem Bless you all.

PRINCE OF WALES AND DUCHESS OF CORNWALL IN SRI LANKA

President Mahinda Rajapaksa greeting the Prince of Wales

President Mahinda Rajapaksa, First Lady Shiranthi Rajapaksa, Sons Namal, Yoshitha and Rohitha with the Prince of Wales

At the reception hosted by HRH Prince of Wales and the Duchess of Cornwall

President Mahinda Rajapaksa in coversation with the Prince of Wales

The Prince of Wales and the Duchess of Cornwall speaking to pre-school children at Wesminster House

The Prince of Wales inspecting local produce

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Ceylon Tea Exploring Market Potential

Ceylon Tea has long established its name in the world market. Today Sri Lanka remains the third largest exporter and fourth largest producer in the world, with key markets in Russia, CIS region and the Middle East. Leveraging on a solid foundation of high quality and taste, Janaki Kuruppu, Chairperson of the Sri Lanka Tea Board, speaks of the aggressive promotional plans to expand into other markets, in particular the United States.

With repute for stringent quality and distinct taste that cannot be produced elsewhere, Ceylon Tea

continues to fetch the highest price in the global market. Sri Lanka can lay claim to versatility in its production of tea with seven different agro-climatic regions within its small geographic

area producing 28 grades of tea. Consequently Sri Lanka is able to cater to a variation of preferences be it strong black tea or mild tea. Furthermore, Sri Lanka is a veteran in the industry with over 145 years of experience.

In venturing into new markets such as the US, competitive prices and proximity are challenges that have

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arisen in relation to other tea producing competitors such as Kenya and Argentina. However, Ceylon Tea can be positioned as a premium quality product due to its many attributes. “Much like French wine or Columbian coffee, generically Ceylon Tea is well placed to position itself as a product of finest quality,” says Janaki Kuruppu. Accordingly Ceylon Tea has been given the ozone-friendly status by the Montreal protocol, while its MRL levels (maximum residue levels) from chemicals used to grow tea are of the lowest and all exported tea conform to the ISO 3720 amongst other certifications. “We have the cleanest tea in the world and aside from the clean and ethical practices there is also the CSR aspect as well,” she states where two million livelihoods depend on the industry in Sri Lanka. “It is more than just a tea that tastes good,” she adds.

While the US market predominantly consumes coffee, the fastest growing soft drink in restaurants across the US is iced tea. “In order to tap into this market, tea has to be made in a particular form for iced tea and our industry needs to change manufacturing processes,” explains Janaki Kuruppu. She further observes the US Horesca; hotels, restaurants and catering, as a first entry point to reaching the US markets. This is as reaching the US market’s supermarket led distribution network has proved to be challenging to Sri Lankan companies. Alternately the US Restaurant Association is formidable, employing the highest number of people in comparison to any other industry and thereby presents a promising opportunity.

“At present we are engaging with the USA Tea Association of which we are a member, and in future we hope to have a dedicated staff officer for tea promotion in the US market,” says Janaki Kuruppu of the current strategies. As of now Ceylon Tea has shown growth in volumes and Sri Lankan companies have had promising successes acquiring major accounts in supplying tea to the US

“AT PRESENT WE ARE ENGAGING WITH THE USA TEA ASSOCIATION OF WHICH WE ARE A MEMBER, AND IN FUTURE WE HOPE TO HAVE A DEDICATED STAFF OFFICER FOR TEA PROMOTION IN THE US MARKET,”

market. Renewed interest in Ceylon Tea has also been generated as Sri Lanka has earned greater visibility through participation in trade fairs. In June of 2013 the Sri Lanka Tea Board participated for the first time at the Summer Fancy Food Show in New York — the largest specialty food fair in the US.

In the global market Ceylon Tea earns a revenue of USD 1.6 billion at present, with five years targets reaching USD 2.1 billion in 2016 and USD five billion by 2020. “We hope to explore other markets as well and expand into at least ten new markets and gain better prices at the tea auction,” says Janaki Kuruppu. Incidentally tea still remains the second most consumed beverage in the world behind coffee. Consequently coffee earns four times as much in turnover for lesser volumes of sales than tea. “As consumers are willing to pay much more for coffee, then tea prices too can be increased while improving our value added percentage,” notes Janaki Kuruppu. She further observes that much can be done in the promotion of tea that is far behind the scale carried out for coffee globally. Aside from the Orthodox tea; a specialty tea that Sri Lanka predominantly produces and CTC tea. Sri Lanka produces green tea which is gaining popularity in the global market. At present varieties of green Ceylon Tea is produced by eleven manufacturers that include Young Hyson (including Chun Mee), Sou Mei or ‘longevity tea’, rolled ‘gunpowder’ tea, green tea fannings and Sencha fannings.

While aggressively promoting Ceylon Tea in the US market, Australia, Mexico, Brazil, UK and South Africa are some of the other markets where the Sri Lanka Tea Board will pay further attention to. “The world’s largest tea importers are Russia, UK, Egypt and Pakistan out of which we have only tapped into Russia. Other markets have moved on to cheaper teas however we find that consumers continue to harbour a partiality for Ceylon Tea,” says Janaki Kuruppu on potential markets.

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NON-NATIONALS, CORPORATE BODIES INCORPORATED OUTSIDE SRI LANKA, FOREIGN INSTITUTIONAL INVESTORS, MUTUAL FUNDS AND SRI LANKAN CITIZENS EMPLOYED ABROAD CAN INVEST IN SFIDA ACCOUNTS.

Seylan Bank now offers to all investors of Sri Lankan origin living overseas the opportunity of investing in SFIDA (Special Foreign Currency

Investment Deposit Account) through Seylan Bank accounts. Customers have the option of investing in SFIDA savings and fixed deposits in preferred foreign currency or local rupees.

Non-nationals, corporate bodies incorporated outside Sri Lanka, foreign institutional investors, mutual funds and Sri Lankan citizens employed abroad can invest in SFIDA accounts. There are 14 designated foreign currencies through which customers can invest.

Minimum deposit amount is USD 10,000 or equivalent in any other designated currency. Transaction types are inward remittances received from abroad, currencies brought into Sri Lanka accompanied by a declaration at customs, repatriation of investment in SFIDA abroad, transfers from other SFIDA accounts and withdrawals in Sri Lankan rupees.

SEYLAN BANK’S SFIDA: A NEW GATEWAY FOR INVESTORS

BENEFITS ARE AS FOLLOWS :

1. Exemption from income tax and no tax withheld on interest2. No exchange risk if placed in

foreign currency 3. Re-conversion of rupee investment

to any designated foreign currency 4. Attractive rates of interest and

exchange rates As a special benefit to reward cus-

tomers that place term deposits the bank offers the following:

A. If USD 25,000, up to USD 49,999 is placed in a 6 month term deposit (or any designated currency). Depositors would be entitled for a free full-board hotel package in a star class hotel once every two years. (one night stay for two)

B. If USD 50,000 and above is placed in 6 month term deposit (or any designated currency) depositors would be entitled for a free full board hotel package in a star class hotel once every two years. (two nights stay for two)

Further the bank offers the following convenient banking services such as internet banking, 24 hour call centre support, utility bill payment facility and 365 day banking at our millennium branch.

Seylan Bank is rated A – (lka) by fitch and completed 25 years in service this year with a vision to be the leading financial services provider in Sri Lanka as recognized by all our stakeholders.

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Walters Bay has a simple company ethos: “Never Compromise on Quality.” Walters Bay re-defines

Pure Ceylon Tea as the purest Ceylon tea available to consumers and backs up this claim in many dimensions. As a fully vertically integrated tea company, the quality assurance and quality control starts with their tea nurseries and gardens, continues to their tea processing factories, and concludes at packaging factories and then on to distribution. Each batch of fresh green leaves from the tea gardens is carefully selected and graded prior to receiving it at the processing factories. Today, Walters Bay owns the very first FSSC 22000

Walters BayNever Compromise on Quality

(Food Safety System Certification) black orthodox tea processing factory in the world. This is a GFSI (Global Food Safety Initiative) certification and is the gold standard for food supply chains. The company uses technologically advanced ferrous and non-ferrous detection and removal machines at the tea processing factories and does a secondary tea purity testing at its final packaging facility. In addition, each batch of tea is then subjected to a strict microbial testing protocol with laboratories in Sri Lanka and the US. These strict purity programs guarantee every kilogram of Ceylon tea that Walters Bay exports meets or exceeds the highest quality requirements of any global customer.

Walters Bay Commercial Iced Tea Brewers and Water Filtration

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WALTERS BAY STRONGLY BELIEVES IN BEING ABLE TO SUB-STANTIATE A CLAIM AS THE PUREST CEYLON TEA WITH TEST DATA AVAILABLE TO ITS CUSTOMERS FOR EVERY SHIPMENT - THE COMPANY BELIEVES THIS IS “TRUE VALUE-ADDITION.”

Walters Bay strongly believes in being able to substantiate a claim as the purest Ceylon Tea with test data available to its customers for every shipment - the company believes this is “true value-addition.” In a highly competitive global tea industry, Ceylon tea has the highest cost of production. Substantiation of purity and quality not only validates the premium merits of Pure Ceylon Tea, but it also allows global customers to pay a higher and justified price for Pure Ceylon Tea, thus making the Ceylon tea industry sustainable.

Walters Bay strongly focuses on the environmental and social Sustainability in tea, and has installed several large scale projects in Sri Lanka. These programs include building new tea nurseries, implementing tea replanting programs, and establishing social welfare programs to assist tea farmers and their families. The simple philosophy of knowing that every cup of tea cannot be separated from the very people that grew and hand picked these teas is a focal point of Walters Bay when introducing these premium teas to global customers. The true value proposition for consumers is to know that their premium quality cup of tea also helped to enhance the quality of life of the very workers that created that cup of tea. When business is conducted with this in mind, the company believes the entire supply chain becomes sustainable.

Walters Bay’s primary sales avenue is the iced tea market in the United States. Today the company takes pride in offering multiple award winning iced teas to the United States foodservice sector and is the largest exporter to the United States of value added Pure Ceylon Tea. In order to service the US iced tea market, there are several mandatory items that need to be addressed. Packaging requirements are very strict with respect to specific

pack sizes and case sizes. Both need to be suitable for restaurant use in commercial iced tea brewing machines. These iced tea brewing machines are typically provided by the supplier of tea and can cost hundreds of thousands of dollars to outfit just one chain of restaurants. In addition to the cost of the brewing machines, additional costs must be incurred to address water filtration needs that vary widely from city to city so that the tea brews properly in every restaurant. Since water TDS levels in the

United States ranges from less than 100 to over 1,500ppm, managing and maintaining the water quality is a very important part of selling iced tea to this market. To be able to address these water variances, Walters Bay has a state-of-the-art water technology system in their US office that can simulate water in any city in the world. This system allows the company to develop Pure Ceylon Teas that will meet the quality and premium flavor requirements of its customers. The mandatory items beyond the packaging, equipment, and water include: sales and service personnel, office space, regional warehousing, inventory management, and full logistics support for customers nationwide.

Today, Walters Bay continues to make long term investments in the Ceylon tea industry. The company adamantly believes that practicing its simple ethos of “Never Compromise on Quality” is the key to offering a sustainable and profitable cup of Pure Ceylon Tea, and further strengthens the position of Ceylon Tea as the world’s best tea.

Walters Bay Packing Factory and Quality ControlWalters Bay Tea Nursery and Processing Factory