Sri Lanka must press ahead with free trade agreements and broader economic liberalisation to restore investor confidence and attract export manufacturing, South Korea’s ambassador to Sri Lanka has said.
Miyon Lee made the remarks at an Ambassador’s Round Table in Colombo organised by the Pathfinder Foundation, drawing on South Korea’s own experience of economic recovery following the 1997 Asian financial crisis.
She urged the Sri Lankan government to establish a stronger, well-coordinated trade negotiation mechanism backed by institutional reform, warning that fragmented negotiations spread across multiple institutions would limit the country’s ability to benefit fully from trade deals and meet its World Trade Organization (WTO) obligations.
“The implementation of WTO obligations and trade facilitation reforms such as the ‘single window’ system will be critical for Sri Lanka’s future integration into global trade networks,” she said.
Lee said South Korea had responded to its 1997 financial crisis by pursuing trade negotiations more aggressively and restructuring its government to create a dedicated trade negotiation body with the authority to coordinate across ministries and assess the broader economic impact of trade agreements.
The ambassador also said that supply chain disruptions, geopolitical tensions and a weakening multilateral trading system were reshaping international commerce.
Despite this, she said trade and investment liberalisation remained decisive for middle-income countries seeking sustainable growth.On future cooperation between the two countries, Lee identified climate change adaptation, digitalisation and human resource development as priority areas.
She noted that South Korea remained one of Sri Lanka’s leading development partners through grants, concessional loans and technical assistance, but cautioned that bureaucratic delays risked undermining development outcomes.
“Everything has to be fast,” she said, calling for closer coordination between Sri Lankan authorities and international partners.
The ambassador noted that more than 20,000 Sri Lankans were currently working in South Korea, making it one of the leading Asian destinations for Sri Lankan migrant workers.
However, she warned that Korean demand for foreign labour could ease as industries increasingly adopted automation and smart factory technologies.
Lee attributed South Korea’s economic resilience to strong democratic institutions, accountability and investment in education and overseas talent networks.
“We did not have natural resources, so we relied on human talent,” she said.( Source- The Leader)
