Business
Vietnamese Foreign Minister highlights potential for Vietnam-SL economic cooperation
Vietnamese Foreign Minister, Bui Thanh Son, had a bilateral meeting lasting nearly 60-minutes with Ambassador for Sri Lanka in Ha Noi, Prof A. Saj U. Mendis, at the ministry head office. The primary objectives of the meeting with the Foreign Minister were to discuss and explore possibilities and avenues to enhance and aggrandize economic, commercial, investment, touristic and trade dimensions and other concomitants of foreign policy issues, particularly, in the context of multilateral cooperation and Sri Lanka’s entry into the largest trading bloc, known as the Regional Comprehensive Economic Partnership (RCEP), among others matters.
A press release issued by Sri Lankan embassy in Vietnam said: ‘Ambassador Mendis expressed appreciation to the Government of Viet Nam and to Minister Bui Thanh Son for the assistance and cooperation extended to Sri Lanka including its support at the Human Rights Council in Geneva. Minister further stated that the bilateral relations in the context of political relations have reached basically the maximal plateau between the two countries and it is of the intrinsic interest of both the countries to translate and transform the political utility to economic utility.
‘Ambassador Mendis stated that, today, Vietnam is among the fastest growing economies in the world and attracts and woos the largest percentage of FDI in comparison to the GDP. This is stated in the context that Vietnam attracted USD 22 billion in 2022 and this year, Vietnam anticipates FDI in the vicinity of USD 28-30 billion. In other words, this figure is over 6% of the GDP of Vietnam, which is the highest percentage of FDI vis-à-vis the GDP of any country. Ambassador Mendis stated that many international economists and analysts have coined terms such as “Miracle on Mekong region”, “Mecca for FDI and manufacturing” and “China plus One” referring to the rise and profile of Vietnam.
‘The Foreign Minister explained that Vietnam had to overcome three issues in order to advance its current status; firstly, infrastructure, secondly, developing soft infrastructure, such as human capital and digital transformation, and thirdly, formulation of foreign policy with reforms in the country that support integration with other countries. Vietnam wishes to exploit and leverage the potential of Sri Lanka in a myriad of sectors and realms. Since the trade between the two countries is at a modest level of around USD 350 million, both countries should have a lucid and focused objective to advance it to USD 500 million within the next year, and then reach USD 1 billion, in the foreseeable future.
‘The minister accentuated the vitality of tourism, since Vietnam is highly focused and is one of the most sought-after touristic destinations in the world, attracting over 10 million tourists in a given year. In this scenario, minister suggested that Sri Lanka and Vietnam could have bilateral tourism since very few Vietnamese travel to Sri Lanka despite the amazing and “riveting” natural beauty and fauna and flora, among others. In the context of air connectivity, the minister stated that direct flights maybe difficult to operate but they could operate charter flights since both the countries have a large Buddhist population. He also added that in 2022, approximately 10 million Vietnamese traveled out of the country, mostly to ASEAN, China, Japan and Europe and very few have traveled to Sri Lanka. Ambassador added that if Sri Lanka could capture 0.2%, it would translate to 20,000, which the minister too agreed needed to be aimed at.
‘The ambassador discussed that the augmentation of Vietnam within a space of two decades was primarily due to its 17 FTAs and Comprehensive/Strategic Partnership Agreements. In this context, Ambassador Mendis too echoed and resonated the sentiments expressed by Sri Lankan Foreign Minister in Jakarta of the deep interest that Sri Lanka has in joining the 15-member RCEP. The minister stated that Vietnam would fully and unreservedly support the application of Sri Lanka to join the RCEP. Amb. Mendis also enunciated the interest of Sri Lanka to have an FTA with Vietnam as both the countries could benefit with regard to bilateral trade.
‘Ambassador Mendis did underscore that both Sri Lanka and Vietnam had exports amounting to around USD 750 million in early 1980s, whereas, today the exports of Vietnam are in the vicinity of USD 370 billion and Sri Lanka is still hovering around USD 12-13 billion. The minister was visibly and discernably keen in enhancing and augmenting bilateral trade as well as bilateral investments between the two countries. Both the minister and ambassador, along with the respective delegations, agreed to exert the efforts and labour in a concerted, determined and proactive manner, thus elevating and deepening, mostly, economic and commercial activity between the two countries.’
Business
EU’s new anti-greenwashing rules pose major challenge for Sri Lankan exporters
Countdown to September 2026 begins
Sri Lankan exporters selling into Europe may soon face one of the most significant regulatory shifts in recent years as the European Union prepares to enforce sweeping new rules aimed at eliminating ‘misleading’ environmental and sustainability claims.
The regulation, known as the Empowering Consumers for the Green Transition Directive (EmpCo) – Directive (EU) 2024/825, will become fully enforceable across all EU member states from September 27, 2026. While the directive is primarily designed to protect European consumers from so-called ‘greenwashing,’ and it carries important implications for exporters worldwide, including those in Sri Lanka.
Compliance experts warn that many local businesses remain largely unaware of the new requirements despite their potential impact on market access, brand reputation, and regulatory compliance.
The directive introduces a simple but demanding principle: companies must be able to substantiate environmental and sustainability claims with credible evidence. Generic descriptions such as ‘eco-friendly,’ ‘green,’ ‘sustainable,’ ‘responsible,’ ‘carbon neutral,’ or ‘climate friendly’ may no longer be used freely unless they can be verified through reliable data and supporting documentation.
For Sri Lankan exporters, this represents a significant shift. Sustainability claims increasingly appear on product packaging, websites, social media campaigns, annual reports, tourism marketing materials, and corporate communications. Under the new framework, such claims could face scrutiny from regulators, consumers, retailers, and civil society groups.
The directive also places particular emphasis on future environmental commitments. Claims such as ‘Net Zero by 2040’ or ‘Carbon Neutral by 2030’ may require businesses to demonstrate clear implementation plans, measurable milestones, and systems for monitoring progress rather than relying on aspirational statements alone.
An environmental compliance expert told The Island Financial Review that this transforms sustainability from a communications exercise into a governance issue. “Responsibility will no longer rest solely with sustainability departments. Company directors, senior executives, marketing teams, procurement professionals, and compliance officers will all have roles to play in ensuring that public claims can withstand regulatory scrutiny. The potential costs of non-compliance are considerable. Under the directive, penalties may include fines of up to four percent of annual turnover generated within the relevant EU member state, restrictions on marketing activities, increased regulatory investigations, and challenges from consumer organisations and commercial partners.”
“The reputational consequences may prove even more damaging. In highly competitive export markets, trust has become a critical business asset. Companies found to be making unsubstantiated environmental claims could face long-term damage to relationships with buyers, retailers, and consumers.”
“The timing is particularly important for Sri Lankan businesses because compliance preparations, reporting frameworks and adjustments are needed before the enforcement date arrives.”
“Businesses supplying European markets are therefore being encouraged to begin assessing their exposure now rather than waiting until the last minute. Early preparation could help exporters safeguard market access, maintain buyer confidence, and strengthen their competitive position in an increasingly sustainability-conscious global economy.”
“For Sri Lanka’s export sector, the message from Europe is becoming increasingly clear: sustainability claims will no longer be judged by how compelling they sound, but by how convincingly they can be proven,” he said.
As the countdown to September 2026 begins, exporters may need to ask themselves a critical question: Are their sustainability claims ready for a new era of accountability?
By Sanath Nanayakkare
Business
University of West London opens Sri Lanka’s first full UK university branch campus
The University of West London (UWL) has formally opened the University of West London Sri Lanka Branch Campus, the country’s first full UK university branch campus, marking a landmark development in Sri Lanka’s higher education sector.
The University of West London Sri Lanka Branch Campus is designed to bring a UK university learning experience closer to students in Sri Lanka. The campus is operated by ANC Campus, a pioneer in the higher education sector in Sri Lanka with over two decades of experience in delivering internationally recognised education.
The University of West London Sri Lanka Branch Campus gives students the opportunity to study towards world-class UK degrees while remaining close to home. Academic delivery, assessment and quality assurance will be aligned with University of West London standards, with the University maintaining academic oversight of its courses and awards. Students will have access to UWL-approved programmes, academic support, learning resources and a campus environment designed to promote academic success, confidence and employability.
Business
Xiaomi Store powered by Abans opens at One Galle Face Mall
Xiaomi Sri Lanka, marked a significant day in the brand’s local journey with the launch of the all-new Xiaomi 17T and the grand opening of the new Xiaomi Store powered by Abans at One Galle Face Mall, Lower Ground.
This occasion reflects the brand’s growing presence in the country and its commitment to bringing smarter technology, connected devices and immersive customer experiences closer to Sri Lankan consumers.
Held under the theme “Step into a smarter world with Xiaomi,” the launch event welcomed media, partners, technology enthusiasts and customers to experience Xiaomi’s latest innovation and wider smart ecosystem. The new store at One Galle Face Mall powered by Abans has been designed to give customers a hands-on experience across Xiaomi smartphones, smart home products, lifestyle technology and connected devices, supported by Abans’ strong retail presence and customer service network.
Commenting on the milestone, Kain Wang, Country Head, Xiaomi Sri Lanka, said, “17th June is a significant day for Xiaomi in Sri Lanka as we celebrate two important milestones together: the launch of the Xiaomi 17T and the opening of our new Xiaomi Store powered by Abans at One Galle Face Mall. This reflects the strength of Xiaomi’s journey in Sri Lanka and our continued commitment to offering innovation, performance and smarter lifestyle experiences to local consumers. With Xiaomi 17T, we are bringing advanced Leica imaging, powerful performance and long-lasting battery life to users who want to do more with their smartphones. At the same time, our new store creates a dedicated space for customers to experience the Xiaomi ecosystem in a more personal and engaging way.”
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