. /.   WORLD TRADE  
ORGANIZATION  WT/MIN(09)/ST/111 
2 December 2009 
 (09-6391) 
MINISTERIAL CONFERENCE 
Seventh Session Geneva, 30 November - 2 December 2009 Original:   English 
 
  
SRI LANKA 
 
Statement by Mr. S. Liyanagama
 
Secretary, Ministry of Export Development and International Trade  
   Let me first convey the best wishes of my Mini ster Hon. Prof. G.L. Pe iris, for a successful 
conference and his regrets for being unable to be  present due to urgent domestic commitments.  
 
 We gather here at a critical time in the globa l trade and economic environment, with the onset 
of several crises – food, energy and financial.  Th is has led to an exceptionally difficult situation for 
low-income and vulnerable countries like Sri Lanka.   Apart from the global crises, we  are also emerging from a prol onged conflict that wracked our 
economic and social fabric.   
  The present moment is therefore, of great significance for Sri Lanka; having defeated the scourge of terrorism and rescuing nearly 300,000 of its citizens fr om the LTTE, an unparalleled feat, 
we have vigorously embarked on developing conflic t affected areas, while further strengthening 
national amity and reconciliation.  We believe that  developing a sustainable trade based economic 
infrastructure is a sine qua non of this process.     Sri Lanka believes that a strong rules-based multilateral trading system embodying transparency and equality can be a strong mechanis m by which such challenges can be addressed.   
 
 Building up sustainable trade, however, is hampered by factors which affect our 
competitiveness.  As a result, Sri Lanka has also  depended on preferential market access provided 
under GSP Schemes authorized under the enabling clause.  The guiding principle behind the GSP Schemes is that they are to be designed and, if necessary, modified to respond positively to the 
development, financial and trade needs of the de veloping countries. If so designed, GSP Schemes 
facilitate and promote trade and develo pment for developing countries.   
  The benefits under these arrangements were limite d, for Sri Lanka, for a long time.  However, 
since 2005, Sri Lanka has benefited particularly from the special incentive arrangement under the EU 
GSP Scheme. 
 
 Sri Lanka strongly believes that any such special incentive arrangement should respond 
positively to the development, financial and trade n eeds of developing countri es, and should not be 
utilized as a means to pursue foreign policy objectives of the GSP granting countries. 
  Sri Lanka also places great importance on the deep  tariff cuts anticipated at the conclusion of 
DDA.  In this regard, while recognizing the need  for a balanced solution to address preference 
erosion, Sri Lanka, as a country which will be the most severely affected by any such solution, WT/MIN(09)/ST/111 
Page 2  
 
  believes that the final solution should adequately cove r our interests.  We urge that the solution should 
include a faster phasing out period an d more enhanced product coverage. 
  As an SVE and an NFIDC, Sri Lanka is also extremely vulnerable in its agricultural sector.  
Nevertheless, Sri Lanka maintains low tariff bindi ngs for a large number of agricultural tariff 
headings, despite the adverse effe cts and vulnerabilities.  Sri Lanka therefore, places great importance 
on the need for flexibilities to safeguard rural deve lopment, livelihood of farmers and food security. 
  On Aid for Trade, we note with concern th e reduction of aid to Sri Lanka by 50 per cent 
during the period 2006-2007 compared to the peri od 2002-2005.  As a country emerging from conflict 
with growing requirements for rehabilitation and reco nstruction, Sri Lanka requires enhanced Aid for 
Trade facilities both in infrastructure development and trade-related adjustments.  We trust that our 
development partners will come forward to assist us to meet these challenges.   Let me conclude by saying that it is our hope that the political will expressed by many 
Members will translate into an early conclu sion of the DDA with concrete results.   
 
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