US embassy cable - 03COLOMBO1769

UNCLAS COLOMBO 001769 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT PLEASE PASS TO USTR - AMB WILLS/JROSENBAUM/DSPOONER; 
AMEMBASSY SINGAPORE FOR AMB SHINER; AMEMBASSY BEIJING FOR AMB 
SHINER 
FOR DUSTR SHINER FROM AMBASSADOR LUNSTEAD 
 
E.O. 12958: N/A 
TAGS: ETRD, ECON, CE 
SUBJECT: SCENESETTER FOR VISIT OF DUSTR JOSETTE SHEERAN SHINER 
TO COLOMBO 
 
1. (U) This message is SENSITIVE BUT UNCLASSIFIED 
 
2.  (SBU) Summary: Post looks forward to the visit of DUSTR 
Shiner and her delegation for the Trade and Investment 
Framework Agreement Joint Council talks on October 14 and 15. 
This is an excellent time to visit Sri Lanka in order to get a 
better understanding of the economic and political climate. 
The Peace Process is at a crossroads, with an LTTE 
counterproposal expected soon.  Economic indicators are good 
and the GSL is in a very forward-leaning mode on trade 
liberalization and the Doha round.  The Prime Minister will 
head the GSL TIFA delegation and host the meeting during a 
working lunch at his office.  The GSL's top economic priority 
at this juncture is a FTA with the US and they intend to use 
this visit to make their case.  End Summary. 
 
3.  (SBU) Embassy Colombo looks forward to your visit and the 
opportunity to hold the third round of TIFA Joint Council talks 
with the Government of Sri Lanka (GSL).  Your visit comes at an 
opportune time: 
 
--The GSL is awaiting the Liberation Tigers of Tamil Eelam's 
(LTTE) counterproposal regarding an interim administration of 
the north and east, which will likely set the tone and tenor 
for the resumption of peace talks. 
 
--The Central Bank released its analysis for the first half of 
2003 and indicators are positive, exceeding expectations of 
earlier in the year. 
 
--In the post-Cancun environment, the GSL is basking in the 
light of USTR Zoellick's praises, while anti-globalization 
groups try to pillory them for supposedly ignoring the plight 
of their developing country bretheren. 
 
--Anticipation of an FTA with the U.S. is high, with Minister 
of Commerce Ravi Karunanayake publicly assuring Sri Lanka that 
an agreement will be in place around the time of the expiration 
of the Multi-Fiber Agreement in January 2005. 
 
4.  (SBU) The GSL is anxious about our position vis--vis a 
Free Trade Agreement.  The TIFA talks themselves will take 
place at the Prime Minister's office over a working lunch.  The 
PM is personally guiding the bilateral trade relationship with 
the US.  You will find a receptive audience to US ideas on 
Doha, an upbeat assessment on the direction of the economic 
reform program, hopeful anticipation for next steps in the 
peace process and a single-minded focus on meeting US 
requirements for a FTA. 
 
5.  (U) In addition to TIFA, you will have a chance to exchange 
ideas with members of the business community, NGO 
representatives and labor advocates.  You will also visit two 
state-of-the-art manufacturing facilities and meet with a very 
forward looking apparel industry working group.  President 
Kumaratunga will be out of the country, but has asked that you 
meet with one of her key advisors, former Foreign Minister 
Lakshman Kadirgamar. 
LUNSTEAD