NEWSLETTER_EN06/September/2017 SEPTEMBER 2017

A delegation from Sri Lanka led by Foreign

Minister Thilak Marapana and Deputy

Minister of National Policies and Economic

Affairs Harsha de Silva is to discuss enhancing

trade opportunities with the European Union

in Brussels, Belgium.

The team yesterday met with a number of

members of the European Parliament, who

have also supported Sri Lanka with its

application for GSP Plus.

“We are making good progress and we are here to meet with the EU Foreign Minister also to discuss

greater trade opportunities. The EDB is continuing to undertake trade promotion activities in major

EU cities and the GSP Plus benefits will begin to show up in the industrial export figures by next

year. In areas like fish, export numbers have already gone up significantly,” de Silva said.

The duo is also set to meet EU High Representative of the Union for Foreign Affairs and Security

Policy and Vice-President of the Commission, Frederica Mogherini, for discussions on further

strengthening the partnership with the EU on both political and economic matters, the Deputy

Minister revealed.

The delegation from Sri Lanka will also include Sri Lankan Ambassador to Belgium Rodney Perera.

Source: Daily FT (Tuesday, 26 September 2017)

Ministerial team in Brussels to discuss trade

opportunities with EU

Commercial Counsellor of the Embassy of Hungary in

New Delhi visited ECCSL

The Senior Commercial Counselor of the Embassy of

Hungary Mr. Zsolt Pakozdy visited the European

Chamber of Commerce premises on 25th September

2017. The visit comes at a time when Hungary looks

forward to expanding its business presence in Sri Lanka.

The Government of Hungary does not have a direct

diplomatic presence in Colombo however the Embassy

of Hungary in New Delhi India is accredited to Sri Lanka

hence trade and investments activities are monitored and

promoted through the New Delhi office.

Mr. Pakozdy expressed interest in further consolidating

the existing trade and investments between Sri Lanka and

Hungary. Hungary has expressed interest in the

infrastructure projects mooted by

The Megapolis Ministry and the discussions centered on

the future cooperation between Embassy of Hungary

and ECCSL.

Hungary is a landlocked country in central Europe with

an industrial economy. Its main export income is derived

from machinery and transport equipments, consumer

goods, agricultural products, chemicals and iron and

steel.

Mr. Pakozdy was met by Mr. Arnold Perera, Vice

President ECCSL, Mr. John Wilson Director and In-

house Legal Counsel, ECCSL, Mr. Srinath Fernando

General Manager and Mr. Dilshan Nawanjana Asst.

Manager Trade & Investments of ECCSL.

Once the center of power for the large Austro-Hungarian

Empire, Austria was reduced to a small republic after its

defeat in World War I. Following annexation by Nazi

Germany in 1938 and subsequent occupation by the

victorious Allies in 1945, Austria's status remained unclear

for a decade. A State Treaty signed in 1955 ended the

occupation, recognized Austria's independence, and

forbade unification with Germany. A constitutional law that same year declared the country's

"perpetual neutrality" as a condition for Soviet military withdrawal. The Soviet Union's collapse in

1991 and Austria's entry into the EU in 1995 have altered the meaning of this neutrality. A

prosperous, democratic country, Austria entered the EU Economic and Monetary Union in 1999.

IMPORTANT FACTORS

Conventional long Name Republic of Austria

Population: 8,754,413 (July 2017 est.)

Capital: Vienna

GDP - per capita (PPP) $48,000 (2016 est.)

GDP - real growth rate 1.5% (2016 est.)

Exports: $144.3 billion (2016 est.)

Exports - commodities: machinery and equipment, motor vehicles and

parts, paper and paperboard, metal goods,

chemicals, iron and steel, textiles, foodstuffs

Exports - partners: Germany 30.5%, US 6.6%, Italy 6.4%, Switzerland

5.5%, France 4.1% (2015)

Imports: $149.1 billion (2016 est.)

Imports - commodities: machinery and equipment, motor vehicles,

chemicals, metal goods, oil and oil products,

natural gas; foodstuffs

Imports - partners: Germany 37.2%, Italy 6.2%, China 5.9%,

Switzerland 5.3%, Czech Republic 4.3% (2015) Source: World Factbook

Explore Europe - Austria

26%

33%

41%

Sri Lanka's Imports

2014 2015 2016

36%

33%

31%

Sri Lanka's Export

2014 2015 2016

ECONOMY OVERVIEW

Austria, with its well-

developed market economy,

skilled labor force, and high

standard of living, is closely

tied to other EU economies,

especially Germany's. Its

economy features a large

service sector, a relatively

sound industrial sector, and a

small, but highly developed

agricultural sector.

Economic growth has been

relatively weak in recent years,

approaching 0.9% in 2015, but

rising to 1.4% in 2016.

Austria's 5.8% unemployment

rate, while low by European

standards, is at its highest rate

since the end of World War II,

driven by an increased

number of refugees and EU

migrants entering the labor

market. Without extensive

vocational training programs

and generous early retirement,

the unemployment rate would

be even higher.

Although Austria's fiscal

position compares favorably

with other euro-zone

countries, it faces several

external risks, such as

unexpectedly weak world

economic growth threatening

the export market, Austrian

banks' continued exposure to

Central and Eastern Europe,

repercussions from the Hypo

Alpe Adria bank collapse,

political and economic

uncertainties caused by the

European sovereign debt

crisis, the current refugee

crisis, and continued unrest in

Russia/Ukraine. The budget

deficit stood at 1.4% of GDP in

2016 and public debt reached a

post-war high of 86.2% of the

GDP in 2015.

BILATERAL TRADE RELATIONSHIP BETWEEN SRI LANKA AND AUSTRIA

The bilateral trade relations between Sri Lanka and Austria, the volume stands at US$ 126.6 million

(Austria’s exports to Sri Lanka = 100 US$ million and imports from Sri Lanka to Austria = US$ 26.6

million). The main exports from Sri Lanka to Austria are Sports items, Apparel, Machinery and

Agricultural products. Austrian exports products are in the sectors of Machinery, Dairy products and

Fiber. In 2016, Austrian arrivals grew 20% year on year to 16,995 tourists.

SRI LANKA'S TOP TEN EXPORTS TO AUSTRIA

Product

code

Product label Sri Lanka's exports to Austria (USD ‘000)

Value in 2014 Value in 2015 Value in 2016

'TOTAL All products 30,285 28,256 26,693

'95 Toys, games and sports requisites; parts and

accessories thereof

8,828 8,093 8,902

'61 Articles of apparel and clothing accessories,

knitted or crocheted

8,364 8,216 6,408

'85 Electrical machinery and equipment and

parts thereof; sound recorders and

reproducers, television ...

2,225 1,388 3,184

'62 Articles of apparel and clothing accessories,

not knitted or crocheted

1,880 1,580 1,815

'33 Essential oils and resinoids; perfumery,

cosmetic or toilet preparations

382 446 1,334

'40 Rubber and articles thereof 4,375 3,335 1,305

'08 Edible fruit and nuts; peel of citrus fruit or

melons

272 620 1,024

'88 Aircraft, spacecraft, and parts thereof 1,304 903 639

'09 Coffee, tea, maté and spices 728 2,195 520

'20 Preparations of vegetables, fruit, nuts or other

parts of plants

130 116 229

SRI LANKA'S TOP TEN IMPORTS FROM AUSTRIA

Product

code

Product label Sri Lanka's imports from Austria (USD ‘000)

Value in 2014 Value in 2015 Value in 2016

'TOTAL All products 62,103 81,204 99,982

'84 Machinery, mechanical appliances, nuclear

reactors, boilers; parts thereof

6,952 6,673 34,379

'55 Man-made staple fibres 22,943 43,225 27,480

'85 Electrical machinery and equipment and

parts thereof; sound recorders and

reproducers, television ...

3,665 4,226 10,247

'04 Dairy produce; birds' eggs; natural honey;

edible products of animal origin, not

elsewhere ...

5,202 7,245 6,970

'30 Pharmaceutical products 1,861 2,516 5,094

'48 Paper and paperboard; articles of paper

pulp, of paper or of paperboard

4,906 4,191 4,389

'22 Beverages, spirits and vinegar 1,456 1,942 2,100

'90 Optical, photographic, cinematographic,

measuring, checking, precision, medical or

surgical ...

1,388 1,394 1,702

'39 Plastics and articles thereof 8,015 2,731 1,404

'17 Sugars and sugar confectionery 5 - 925

Source: Trademap

Source: Trademap

“Sri Lanka and Austria enjoy very fruitful relations

which have been intensifying for the last years which

is also shown by various official visits, first and

foremost the visit of His Excellency, the President of

Sri Lanka, Maithripala Sirisena. I would like to

congratulate Sri Lanka for its tremendous steps forwards in infrastructure and business

development within the last years. Austria is a strong partner for Sri Lanka within the

European Union and we are looking forward to deepening our cooperation further.”

Dr. Oskar Andesner

Commercial Counsellor at the Austrian

Embassy

The bilateral relationship between Sri Lanka-Austria

Council Decision (EU) 2017/1790 of 25 September 2017 on

the position to be taken, on behalf of the European Union,

within the Cooperation Council established by the

Partnership and Cooperation Agreement between the

European Communities and their Member States, of the

one part, and the Republic of Armenia, of the other part,

with regard to the adoption of the EU-Armenia

Partnership Priorities

Direct text access: pdf

Council Decision (EU) 2017/1789 of 25 September 2017

abrogating Decision 2009/415/EC on the existence of an

excessive deficit in Greece

Direct text access: pdf

Commission Regulation (EU) 2017/1782 of 28 September

2017 establishing a prohibition of fishing for bluefin tuna

in the Atlantic Ocean, east of 45° W, and Mediterranean by

vessels flying the flag of Portugal

Direct text access: pdf

Commission Implementing Regulation (EU) 2017/1781 of

28 September 2017 on the derogations from the product-

specific rules of origin laid down in the Comprehensive

Economic and Trade Agreement between Canada of the

one part, and the European Union and its Member States,

of the other part, that apply within the limits of annual

quotas for certain products from Canada

Direct text access: pdf

Commission Regulation (EU) 2017/1783 of 28 September

2017 establishing a prohibition of fishing for mackerel in

areas IIIa and IV; Union waters of IIa, IIIb, IIIc and

Subdivisions 22-32 by vessels flying the flag of Belgium

Direct text access: pdf

Commission Implementing Regulation (EU) 2017/1778 of

29 September 2017 amending Regulation (EC) No 891/2009

as regards certain provisions concerning the first sub-

period of the 2017/2018 import tariff quota period in the

sugar sector and the full-time refiners' regime

Direct text access: pdf

Corrigendum to Council Decision (CFSP) 2017/1561 of 14

September 2017 amending Decision 2014/145/CFSP

concerning restrictive measures in respect of actions

undermining or threatening the territorial integrity,

sovereignty and independence of Ukraine (OJ L 237,

15.9.2017)

Direct text access: pdf

Council Decision (EU) 2017/1779 of 29 May 2017 on the

position to be taken on behalf of the European Union

within the Association Council set up by the Euro-

Mediterranean Agreement establishing an association

between the European Communities and their Member

States, of the one part, and the Arab Republic of Egypt, of

the other part, with regard to the adoption of a

recommendation on the EU-Egypt Partnership Priorities

Direct text access: pdf

Political and Security Committee Decision (CFSP)

2017/1780 of 18 September 2017 on the appointment of the

Head of Mission of the European Union CSDP mission in

Mali (EUCAP Sahel Mali) (EUCAP Sahel Mali/1/2017)

Direct text access: pdf

Commission Implementing Decision of 29 September 2017

on the publication in the Official Journal of the European

Union of the single document referred to in Article 94(1)(d)

of Regulation (EU) No 1308/2013 of the European

Parliament and of the Council and of the reference to the

publication of the product specification for a name in the

wine sector [Monor, Monori (PDO)]

Direct text access: pdf

Regulation (EU) 2017/1566 of the European Parliament and

of the Council of 13 September 2017 on the introduction of

temporary autonomous trade measures for Ukraine

supplementing the trade concessions available under the

Association Agreement

Direct text access: pdf

This document is an excerpt from the EUR-Lex website

By Mr. Suprio Bose

Director Trade & Investment

Mumbai Office - South Asia

markets

Businesses, in a globalized and

interconnected world, are fully aware of

the need to internationalise; sending their

products and services beyond their own

borders and finding partners to help them

detect new markets. Despite the 8,500 km

that separate Catalonia and Sri Lanka,

business opportunities between both are

growing.

The Sri Lankan market is of special

interest to Catalonia due to the numerous

opportunities offered in different key

sectors for Catalan companies, such as

tourism, infrastructure and energy, with

the focus here on renewable energies. In

fact, for over 25 years Catalonia Trade &

Investment, the Catalan economic

promotion agency, has had its own office

in Mumbai, from which it locates

collaboration opportunities in all the

countries in the area. As a result, Catalan

exports to Sri Lanka in 2016 increased by

42.5%, in sectors such as machinery, paper

and cardboard, and perfumery and

cosmetics. At present, 340 Catalan

companies export to Sri Lanka.

Catalonia, located in north-eastern

Spain, has 7.5 million inhabitants and is

considered one of southern Europe’s main

hubs, thanks to its strategic location, a

common characteristic it shares with Sri

Lanka. It has a strongly ingrained and

diversified industrial tradition, a sector

that concentrates 21% of the Catalan GVA.

One of the sectors of special note is that of

food and drink, concentrating the bulk of

Catalan exports abroad (12.3% of the total)

and one that is open to more collaboration

opportunities.

In 2016, Catalonia’s export volume

stood at 65,000 million euros. According to

last year’s figures, there are 48,035

exporting companies in Catalonia, and

9,000 subsidiaries of Catalan companies

abroad. Regarding foreign investment in

Catalonia, the Financial Times names

Catalonia southern Europe’s most

attractive region for 2017. In fact, last year,

the region totaled a figure of 4,857 million

euros, mainly concentrated in sectors such

as manufacturing (28%), ICT (25%), agri-

food (13%) and automotive (13%). At

present, there are 7,086 international

companies in Catalonia.

One field especially relevant for

Catalonia, and where its business

ecosystem concentrates significant efforts,

is innovation. Catalonia, with only 0.1% of

the world's population, is responsible for

1% of global scientific production, and has

some 9,500 innovative companies.

Furthermore, the region hosts

infrastructures such as the Mare Nostrum

supercomputer or the Alba Synchrotron,

southern Europe’s first particle accelerator.

In fact, in Catalonia more than half of the

companies innovate, a trend on the rise

year after year.

It is, therefore, particularly

significant that Barcelona is the second

smart city in the world (behind Singapore),

according to Juniper Research. The role of

the capital is a clear example of Catalonia's

strong commitment to adopt smart

solutions for urban management, with a

substantial amount of initiatives and

projects.

The information and

communication technology (ICT) sector

employs 81,800 workers in Catalonia

(representing 2.6% of the total Catalan

workforce), encompassing over 12,800

companies (almost 2% of the total number

Catalonia and Sri Lanka:

undiscovered opportunities await…

of Catalan companies). With a vigorous

mix of consolidated companies and new

business ventures, Catalonia enjoys a large

pool of highly skilled workers. Moreover,

between 2010 and 2016, Catalonia was the

second region of the Southern Europe in

terms of attracting more foreign

investment ICT projects, especially

relevant when it comes to meeting the

needs of smart cities.

The smart city ecosystem in Catalonia is

made up of around 270 companies (84% of

which are based in Barcelona), which in

2015 reached an aggregate turnover linked

to the smart city sector of almost 7,000

million euros, representing 3% of the

Catalan GDP. These figures are from a

study prepared by Catalonia Trade &

Investment, which for the first time deeply

analyses the role of this sector in Catalonia.

The smart city sector offers

opportunities for different types of

companies: ranging from those still

without a smart presence in Catalonia, to

others showing high technological

development or who have already

participated in international projects in this

field. The segments with the greatest

potential in this field are the

environmental, lighting, mobility, facility

management, telecommunications, data

integration platforms, Big Data analytics

and city operating systems. This is an

evolving sector and with growth potential

for large cities around the world, and one

which is generating increasingly greater

interest among companies in a wide range

of sectors.

In terms of specific local initiatives,

Catalonia is home to several smart sector

bodies. ACCIÓ promotes projects in this

field, but what is also noteworthy is the

role of organized clusters, universities,

technology centres, fairs and international

networks, among other players. In this

sense, the Barcelona Smart City Expo

World Congress is the leading

international encounter in the field of

urban development and technological

revolution. The event connects cities,

regions and territories with leading smart

sector companies and experts to promote

the exchange of knowledge and

experiences on an international level. Some

of the sectors that offer more opportunities

in terms of innovation in Catalonia are

those linked to energy, mobility, ICT

infrastructure integration and data

management. Furthermore, Catalonia also

benefits from policies linked to this area, as

in the case of Horizon 2020.

Upcoming International Events

Smart City Expo World Congress is a 3 day event being held from 14th November to the 16th

November 2017 at the Gran via Exhibition Centre in Barcelona, Spain. Smart City Expo World

Congress is a grand show of its kind which will have 118 companies on the same platform who will

get a fabulous opportunity to display all their goods and services from the related sector. This event

will provide the exhibitors a center stage with the help of which the participating companies will

promote their goods well and it is expected that they will reach out to large number of potential

customers and clients not only in the region but all round the world. Smart City Expo will serve as a

place of information exchange between the exhibitors and the visitors and by visiting the fair, the

attendees will definitely get to collect all relevant information about the trade.

For more details, please visit http://www.smartcityexpo.com

Contact: htanna@catalonia.com or sbose@catalonia.com

Business Beyond Borders (BBB)

If you are interested to take part, please inform us: invest.trade@eccsl.lk

For more details: http://www.businessbeyondborders.info

About Business Beyond Borders (BBB)

The European Commission (EC), has launched a new initiative called “Business Beyond

Borders” which aim to create connections between Small and Medium Enterprises (SMEs)

and Clusters from around the world, and foster opportunities for international

collaborations.

Tailor-made services are provided to companies participating at international fairs by

establishing a series of free of charge matchmaking events and by supporting the

development of the companies’ activities in target markets.

BBB Matchmaking Event at HostMilano 2017

The event will take place on 20 – 21 October 2017 at FieraMilano Exhibition Centre. The

aim of the event is to create a quick and easy way for businesses, actively engaged within

the field of food and hospitality, to meet potential partners and to operate internationally.

Are you an exhibitor showcasing your products and want to organise your agenda?

Are you a professional visitor attending the fair and want to get the most of your

time?

Are you interested in having information on EU initiatives to support you going

international?

Business Beyond Borders is an initiative funded by the European Commission

and coordinated by EUROCHAMBRES