-By LeN Diplomatic Correspondent
(Lanka-e-News -14.June.2025, 4.45 PM) Berlin - As Europe reassesses its strategic partnerships in the Indian Ocean and Asia-Pacific regions, Sri Lanka appears to be re-emerging on the global investment radar. With a newfound sense of political stability and improved governance after years of turbulence, the island nation is attracting growing interest from Germany—not merely as a tourist destination but as a broader trade and development partner.
In a high-level bilateral discussion held day before yesterday (12 June) in Berlin, Sri Lankan Foreign Minister Vijitha Herath met with Dr. Thomas Steffen, State Secretary at Germany’s Federal Ministry for Economic Affairs and Climate Action. At the centre of the discussion was the proposal to establish direct flight connectivity between Sri Lanka and Germany, a move that both sides view as a potential catalyst for enhancing tourism, trade, and skilled labour mobility between the two nations.
The meeting took place on the sidelines of President Anura Kumara Dissanayake’s state visit to Germany, during which Berlin accorded him full military honours. While much of the media spotlight was on the political symbolism of the President’s visit, it is the quiet diplomacy of his accompanying ministers that may lay the foundation for a new chapter in Sri Lanka–Germany relations.
Speaking to German officials, Minister Herath reportedly emphasised that Sri Lanka now offers a highly investor-friendly environment. He highlighted the country’s “recent achievements in restoring macroeconomic and political stability,” and underlined the government’s commitment to clean, corruption-free governance as a cornerstone of its post-crisis recovery.
“With a new legal and regulatory framework being implemented, and key reforms underway, Sri Lanka is prepared to welcome foreign investors with predictability, transparency, and efficiency,” Minister Herath told Dr. Steffen.
Germany is already Sri Lanka’s fourth-largest tourism market, behind India, the UK, and Russia. However, the absence of direct flights between the two countries has long been cited as a bottleneck to growth in both tourism and business. The two delegations discussed expanding direct air travel routes, with potential carriers and aviation authorities to be consulted in the coming months.
Senior officials present at the meeting described the atmosphere as "extremely positive," with both sides expressing mutual interest in deepening economic engagement across a range of sectors.
Germany also reaffirmed its support for Sri Lanka’s vocational training and skills development programmes, particularly those aimed at producing a globally employable workforce. Over the past five years, German-funded technical education initiatives have been instrumental in upgrading Sri Lanka’s training institutions, especially in mechatronics, electrical engineering, and renewable energy.
At yesterday’s meeting, Dr. Steffen reportedly confirmed Berlin’s willingness to expand these programmes, especially in the context of Germany’s labour shortage in specialised sectors. “Sri Lanka’s human capital has immense potential,” a German official familiar with the discussion told The Times. “We are exploring frameworks that allow for a transparent and merit-based mobility partnership.”
In particular, Germany is interested in facilitating the mobility of Sri Lankan skilled workers, particularly in engineering, hospitality, and eldercare—three sectors where demand is far outstripping domestic supply in Europe’s largest economy.
In addition to tourism and education, the two parties discussed German participation in Sri Lanka’s economic development roadmap, particularly in technology transfer, green energy, and private-sector engagement. Minister Herath invited German firms to explore opportunities in Sri Lanka’s renewable energy transition, smart infrastructure, and value-added manufacturing sectors.
Officials said there was strong interest from the German side in Public–Private Partnerships (PPPs), particularly in the logistics, urban development, and digital governance sectors. Dr. Steffen acknowledged that “Sri Lanka’s strategic location at the crossroads of East and West” gives it unique potential as a regional logistics and IT services hub.
“This is about more than just aid or development assistance,” said Sugishwara Gunaratne, Director General for Europe and North America at Sri Lanka’s Foreign Ministry, who also attended the meeting. “We’re entering a phase of mature, mutual economic cooperation.”
Observers say the renewed momentum in Sri Lanka–Germany ties is also symbolic of Europe's recalibrated approach to the Indo-Pacific. In recent years, Germany has adopted a more proactive role in the region—both through its “Indo-Pacific Guidelines” and as part of EU-wide initiatives to promote connectivity and sustainable development.
From Berlin’s perspective, Sri Lanka offers both strategic value and soft-power potential. Located just south of the bustling trade routes between the Suez Canal and Southeast Asia, the island has long been regarded as a maritime chokepoint with untapped economic promise. Yet recent history—ranging from the 2019 Easter bombings to the 2022 economic crisis—had made Western partners wary of deeper engagement.
That hesitation appears to be waning.
President Dissanayake’s government, elected on a platform of clean governance and anti-corruption, has undertaken a series of sweeping reforms in recent months, from judiciary independence to central bank autonomy and digital transparency in public procurement.
These moves have not gone unnoticed in Western capitals. Berlin, in particular, sees the current government as a credible and reformist partner. One senior German diplomat noted that “Germany is ready to re-engage with Sri Lanka—not just symbolically, but substantively.”
For all the macro-level policy talk, tourism remains the most immediate—and mutually beneficial—sector for enhanced cooperation. Despite its rich culture, biodiversity, and UNESCO heritage sites, Sri Lanka remains under-visited by German tourists relative to its regional peers.
“There is strong latent demand among German travellers for culturally rich, nature-based experiences in South Asia,” said Dr. Peter Weber, a Berlin-based analyst at the German Tourism Institute. “Sri Lanka ticks all the boxes: beaches, rainforests, wellness retreats, ancient cities. What’s been lacking is ease of access.”
Currently, most travellers from Germany must transit through the Middle East or South Asia, often adding over 6–8 hours to their journey. A nonstop flight from Frankfurt or Munich to Colombo, if realised, could reshape visitor flows—and generate significant foreign exchange for Sri Lanka’s post-crisis economy.
The Sri Lanka Tourism Promotion Bureau (SLTPB) estimates that direct connectivity could increase German arrivals by at least 30% within two years. Given that German tourists tend to spend more per capita and stay longer than most other nationalities, the economic upside is considerable.
Yesterday’s meeting is expected to be the first of a series of bilateral engagements between Sri Lanka and Germany over the coming year. Discussions are underway for a formal economic cooperation agreement, possibly to be signed in early 2026, which would streamline trade, mobility, and investment frameworks.
At the sidelines of the Berlin meeting, senior officials from Sri Lanka’s Ministry of Foreign Affairs, Ministry of Labour and Tourism, and representatives of Germany’s Chamber of Commerce also exchanged views on streamlining visa procedures, dual education models, and SME development partnerships.
“We don’t want token visits or photo opportunities,” said Minister Herath in a post-meeting statement published on X (formerly Twitter). “We want sustained engagement that delivers real benefits to both countries. Germany can count on Sri Lanka’s friendship—and we look forward to the journey ahead.”
As Sri Lanka slowly repositions itself on the global map—after years of economic mismanagement, geopolitical ambiguity, and battered credibility—partnerships like the one taking shape with Germany may offer a way forward.
The two countries are, in many ways, ideal complements: Germany with its technology, capital, and demand for talent; Sri Lanka with its youthful population, strategic location, and appetite for reform. Direct flights may be a starting point, but if yesterday’s meeting is any indication, both nations are charting a longer course.
Whether that course holds through the vagaries of domestic politics and global instability remains to be seen. But for now, the engines are warming—and the runway to stronger ties appears finally clear.
-By LeN Diplomatic Correspondent
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by (2025-06-14 11:26:45)
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