South Korea responds positively to SL’s call for enhanced dollar assistance

Foreign Affairs Minister G.L. Peiris with Republic of Korea Foreign Affairs Minister Chung Eui-Yong

Sri Lanka has reached out to South Korea to obtain enhanced dollar assistance from its EXIM Bank and greater development assistance from KOICA, as the island nation continues to struggle with low levels of foreign exchange.

According to Sri Lanka’s Foreign Affairs Ministry, the response from South Korea was positive with the Republic of Korea Foreign Affairs Minister Chung Eui-Yong agreeing to the request put forward by Foreign Affairs Minister G.L. Peiris.

In the fresh round of discussions held in Seoul by the two ministers yesterday, the areas of trade and investment, political cooperation, defence initiatives, tourism and labour issues took the centre stage.

Prof. Peiris paid tribute to the multi-faceted relationship, which had developed between the two countries during their 44-year relationship and its present robust character. In addition to seeking assistance, the ministers reviewed what was acknowledged as the “very beneficial impact of South Korean development programmes” in Sri Lanka, especially in the fields of water management, waste disposal and secondary education.

Eui-yong said that to increase the commitment to Sri Lanka, his ministry will engage with the private sector to consider greater assistance in Sri Lanka, especially in the fields of computer technology, electronics and pharmaceutical products.

In return, Sri Lanka will set up a special investment zone for South Korea, which will be the revival of an initiative that was embarked upon previously.

The balance of trade between the two countries is significantly in South Korea’s favour. Exports into South Korea are approximately US $ 71 million, while imports into Sri Lanka are at the threshold of about US $ 192 million.  Furthermore, the ministers agreed on exploring “practical ways” of overcoming some of the significant trade barriers, including customs levies on value-added products such as flavoured teas.