US embassy cable - 03COLOMBO1160

UNCLAS SECTION 01 OF 02 COLOMBO 001160 
 
SIPDIS 
 
DEPT PLEASE PASS TO USTR 
TREASURY FOR GRAO 
DOC FOR ITA:  ABENAISSA, LDROKER 
 
E.O. 12958:  N/A 
TAGS: ETRD, PREL, CE, USTR, ECONOMICS 
SUBJECT:  US REPS FOCUS ON TRADE DURING PRIVATE 
VISIT TO SRI LANKA 
 
1.  Summary:  US Representatives Jerry Weller and 
Scott Garrett were in Sri Lanka from June 29 to 
July 3 on a private visit sponsored by a local 
business chamber.  The US Reps, both members of the 
Hill's Sri Lanka Caucus, focused primarily on trade 
during meetings with a wide range of Sri Lankan 
private sector and government leaders, including 
the President and Prime Minister.  The US Reps also 
proposed a possible parliamentary exchange with Sri 
Lanka.  End Summary. 
 
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Exploring Trade Opportunities 
----------------------------- 
 
2.  US Reps Jerry Weller and Scott Garrett recently 
concluded a 4 day private visit to Sri Lanka 
sponsored by Sri Lanka's Federation of Chambers of 
Commerce and Industry.  The US Reps emphasized in 
meetings and events throughout their stay that the 
purpose of their visit was to expand trade 
opportunities between the US and Sri Lanka.  In a 
meeting with Prime Minister Ranil Wickremesinghe, 
the US Reps praised him for his commitment to 
further economic liberalization.  They pressed 
Wickremesinghe to move forward with legislation 
(now pending before Parliament) to protect 
intellectual property, noting that Congress took a 
dim view of countries that fail to protect 
Intellectual Property Rights (IPR).  Wickremesinghe 
assured the delegation that TRIPS-compliant 
legislation would pass Parliament by September, 
despite a current court challenge to a portion of 
the legislation that deals with pharmaceutical 
patents.  US Reps emphasized that legislation alone 
was not sufficient; GSL will need to follow through 
with strict IPR enforcement. 
 
3.  Wickremesinghe asked the US Reps how they 
viewed the prospects for a US-Sri Lankan FTA.  US 
Reps underlined their commitment to broad-based 
free trade as the best way to increase income 
levels, in both the developing and developed world. 
Sri Lanka, they said, should take pride in being 
the first country in South Asia with which the US 
has signed a Trade and Investment Framework 
Agreement (TIFA).  The US, they added, has high FTA 
standards, and any agreement would require 
extensive further liberalization of the Sri Lankan 
economy.  While they hoped the US would move on to 
FTA negotiations with Sri Lanka in the future, much 
would depend on Sri Lanka's commitment to open 
access for US goods and services.  US Reps noted 
that increased business opportunities for US firms 
in Sri Lanka would be an important element in 
gaining the support of the US business community 
for an FTA. US Reps made similar points about 
strict US FTA requirements during a press 
conference at the conclusion of their visit. 
 
4.  US Reps also called on President Chandrika 
Bandaranaike Kumaratunga, who offered them her view 
on free trade.  Kumaratunga said she is in favor of 
free trade - up to a point.  A country like Sri 
Lanka, however, must ensure that the livelihoods of 
local farmers are protected in any FTA negotiations 
(she pointedly noted that the US also protects its 
agricultural industry).  US Reps emphasized the 
need for Sri Lanka to liberalize the economy as 
much as possible, noting that expanded free trade 
would bring better economic opportunities to all 
Sri Lankans.  The atmosphere in the meeting with 
Kumaratunga was highly cordial, and any 
cohabitations strains she is experiencing with the 
government of Wickremesinghe were not evident. 
 
5.  US Reps also discussed opportunities for 
increasing trade with Minister of Commerce and 
Consumer Affairs Ravi Karunanayake and G.L. Peiris, 
Minister of Enterprise Development, Industrial 
Policy and Investment Promotion.  The delegation 
had additional meetings with leading Sri Lankan 
business groups and chambers, as well as the 
American Chamber of Commerce in Sri Lanka. 
 
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Possible Parliamentary Exchange 
------------------------------- 
 
6.  US Reps also met with the Speaker of the 
Parliament Joseph Michael Perera and had the 
opportunity to interact with a wide variety of 
Members of Parliament, including the leader of the 
Opposition and representatives of leading Tamil and 
Muslim parties.  The delegation discussed with the 
Speaker the possibility of a Parliamentary exchange 
with Sri Lanka, noting that both legislatures could 
benefit from the exchange of views and experience. 
US Reps agreed to stay in touch with the Speaker to 
begin to plan for the exchange.  They also 
mentioned the proposal to President Kumaratunga, 
who said she liked the idea. 
 
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Comment 
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7.  This private visit is the first visit - official 
or otherwise - by Members of Congress to Sri Lanka 
in several years.  The Congressmen engaged key 
government leaders across the political spectrum 
and saw first hand the commercial opportunities for 
US companies in this, South Asia's most open 
economy.  Sri Lanka, for its part, used the visit 
to voice clearly its commitment to free trade with 
the US - including making the structural reforms 
that an FTA will require.  Post expects this visit 
to be the beginning of greater Congressional 
engagement in Sri Lanka. 
 
8.  US Reps Weller and Garrett have not cleared this 
cable. 
 
CAMP