{"id":241991,"date":"2025-05-22T17:07:17","date_gmt":"2025-05-22T11:37:17","guid":{"rendered":"https:\/\/www.colombotelegraph.com\/?p=241991"},"modified":"2025-06-03T15:53:53","modified_gmt":"2025-06-03T10:23:53","slug":"new-chapter-of-bilateral-relation-between-sri-lanka-new-zealand","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/new-chapter-of-bilateral-relation-between-sri-lanka-new-zealand\/","title":{"rendered":"New Chapter Of Bilateral Relation Between Sri Lanka & New Zealand"},"content":{"rendered":"

By\u00a0Asoka S. Seneviratne<\/a>\u00a0\u2013<\/strong><\/span><\/p>\n

\"\"

Prof. Asoka.S. Seneviratne<\/p><\/div>\n

“Sri Lanka and New Zealand, though oceans apart, are united by a commitment to democracy, sustainability, and the promise of partnership for mutual growth.”<\/p>\n

Since the establishment of the AKD\/NPP government about six months ago, it paved the way for the opening of the Sri Lanka<\/a><\/span>–New Zealand<\/a><\/span> High Commission in Wellington, New Zealand, on March 3, 2025. This has been a long-felt need for various reasons. New Zealand’s Deputy Prime Minister and Minister of Foreign Affairs, Winston Peters, will make an official visit to Sri Lanka from May 24 to 28, 2025. This marks a historic and significant occasion for Sri Lanka, as it is the second visit by a New Zealand Minister of Foreign Affairs. With Winston Peters serving as Deputy Prime Minister, this visit is notably important due to its rarity.<\/p>\n

It is vital to discuss and highlight the diplomatic relations between New Zealand and Sri Lanka with enthusiasm and dedication. Before the opening of the New Zealand High Commission in Colombo in August 2021, diplomatic relations were progressing slowly. The establishment of the High Commission in 2021 marked a significant milestone, highlighting New Zealand’s commitment to a long-term presence in Sri Lanka and indicating its intention to strengthen bilateral relations across various sectors, including strategic, economic, educational, cultural, sports, and people-to-people connections. In summary, this important decision by New Zealand demonstrated its strong commitment and deep desire to enhance bilateral relations.<\/p>\n

It is worth noting that in 2013, New Zealand’s Minister of Foreign Affairs, Murray McCully, visited Sri Lanka, marking the first visit by a New Zealand Foreign Minister to the country. This visit reflected a renewed commitment to strengthening bilateral relations between the two nations that had existed since 1958.<\/p>\n

McCully expressed New Zealand’s willingness to assist Sri Lanka in developing its dairy sector and proposed signing a Memorandum of Understanding (MoU) to enhance collaboration in this area, which marked a significant development. Additionally, McCully addressed human rights and reconciliation issues, emphasizing New Zealand’s interest in Sri Lanka’s progress on these matters. He highlighted the importance of the 2013 Commonwealth Heads of Government Meeting (CHOGM) in Colombo, viewing it as an opportunity for international scrutiny. He encouraged Sri Lanka to make tangible progress in reconciliation efforts leading up to the summit. McCully also visited northern regions of Sri Lanka affected by the civil war to gain firsthand insight into the challenges faced by local communities and assess the progress of post-conflict recovery and reconciliation initiatives. His visit underscored New Zealand’s commitment to supporting Sri Lanka’s development and reconciliation processes while strengthening bilateral relations between the two countries.<\/p>\n

Sri Lanka and New Zealand Relations: Historical Perspective<\/span><\/strong><\/p>\n

In light of the Colonial Connections and Early Contacts, as well as the legacy of the British Empire, both Sri Lanka (formerly Ceylon) and New Zealand were part of the British Empire. Although they had no direct interaction during the colonial era, this shared colonial heritage established the foundation for future diplomatic and economic relations. After gaining independence in 1948, Sri Lanka and New Zealand, which had become dominions earlier in 1907, both joined the Commonwealth of Nations, promoting cooperation among former British colonies. Based on available information, formal diplomatic relations between Sri Lanka and New Zealand were established in March 1958. New Zealand Prime Minister Walter Nash undertook a significant diplomatic visit to Ceylon (now Sri Lanka) as part of a broader tour of Asia and the Pacific. This visit, which took place from March 21 to 23 at the invitation of Sri Lankan Prime Minister S.W.R.D. Bandaranaike, highlighted the strengthening bilateral relations between the two nations during the post-colonial era. The central aim of Prime Minister Nash’s visit was to inaugurate development projects funded by New Zealand under the Colombo Plan, a regional initiative focused on promoting economic and social development in Asia and the Pacific. Notably, Prime Minister Nash officially opened the National Milk Board and the Dental Training Institute in Colombo, both established with New Zealand’s assistance. These projects illustrated New Zealand’s commitment to supporting Sri Lanka’s health and agricultural sectors. Regarding Prime Minister Walter Nash’s educational engagements, he visited the dental school in Maharagama, emphasizing New Zealand’s role in enhancing medical education and training in Sri Lanka. In summary, the visit provided an opportunity for Prime Minister Walter Nash to engage in bilateral discussions with Prime Minister Bandaranaike, focusing on areas of mutual interest and cooperation. Given all of this, Walter Nash’s 1958 visit to Sri Lanka marked a pivotal moment in New Zealand\u2013Sri Lanka relations. It not only reinforced diplomatic ties but also showcased New Zealand’s active participation in regional development through the Colombo Plan. The initiatives launched during this visit established the groundwork for continued collaboration in sectors such as agriculture, education, and health, fostering a lasting partnership between the two countries. Ultimately, this visit underscores the deepening diplomatic engagement between New Zealand and Sri Lanka.<\/p>\n

As indicated above, the establishment of the New Zealand High Commission in Colombo in 2021 marked a significant milestone, reflecting New Zealand’s long-term commitment to the country and signaling an intention to enhance bilateral relations across various sectors, including strategic, economic, educational, cultural, and people-to-people connections. Given this, the Deputy Prime Minister is expected to pay courtesy calls to President Anura Dissanayake and Prime Minister Harini Amarasuriya, as well as other senior government officials. Most importantly, Peters will hold bilateral discussions with the Minister of Foreign Affairs, Foreign Employment, and Tourism, H.M. Vijitha Herath, to improve cooperation in several areas: (i) trade and investment, (ii) agriculture, (iii) education, (iv) connectivity, (v) tourism, and (vi) sports. Given the Trump administration’s 44% tariff on Sri Lanka\u2019s exports, there is a pressing need to strengthen and broaden bilateral relations with other countries. As a result, the Deputy Prime Minister\u2019s visit is a golden opportunity moving in the right direction. New Zealand is Sri Lanka\u2019s main importer of milk powder, while Sri Lanka is facing a substantial trade deficit in its bilateral trade. This trade disparity has sparked discussions on enhancing Sri Lankan exports, focusing on diversifying products and targeting niche markets. To address these issues, diplomatic engagements have intensified, highlighted by the opening of the New Zealand High Commission in Colombo in August 2021, signaling a commitment to deepening economic, educational, and cultural partnerships. As New Zealand maintains an open economy, the role of foreign investment and private sector engagement is well recognized. Therefore, New Zealand’s presence in Sri Lanka is significant and vital in many ways. Thus, Mr. Peters is expected to interact with members of the private sector, potentially through the Ceylon Chamber of Commerce, and participate in media events. It is understood that this visit is part of a broader diplomatic tour of South Asia, which includes stops in Nepal and India, aimed at reinforcing New Zealand’s engagement in the Indo-Pacific region. The New Zealand government regards this trip as an opportunity to provide political momentum and leadership to the growing partnership between New Zealand and Sri Lanka. In recognition of bilateral friendship, it is anticipated that Deputy Prime Minister Peters may be honored with the Sri Lanka Mitra Vibhushana, a prestigious award given to foreign nationals for exceptional and distinguished service to Sri Lanka. This honor reflects the high regard in which New Zealand’s contributions to Sri Lanka’s development and bilateral relations are held.<\/p>\n

Strengthening Bilateral Relations in the Future <\/b><\/span><\/p>\n

With well-established diplomatic relations between Sri Lanka and New Zealand, it is essential to focus on areas where bilateral ties can be strengthened, benefiting both countries. In this regard, Sri Lanka must concentrate on developing a Strategic Plan (i.e., where we are now, where we want to go in 5 years, how do we reach our destination, and finally, how do we know we have reached our destination). As the global trading landscape rapidly changes in numerous ways (i.e., the production and export of knowledge-based products rather than traditional resource-based products), the aforementioned Strategic Plan is vital for Sri Lanka, particularly due to the trade gap that requires strategic action. In 2024, New Zealand\u2019s exports to Sri Lanka reached US$203.4 million, while Sri Lanka\u2019s total imports from New Zealand amounted to $216.37 million in the same year.\u00a0New Zealand ranks as the 52nd export destination for Sri Lanka. Given this gap, Sri Lanka must take strategic steps to reduce the disparity and aim for a US$500 million surplus. This target can be achieved with a well-defined Strategic Plan as explained above. Below, I outline the main strategic areas that should be seriously considered for enhancing exports. I categorize these areas from A to F; however, I will provide details only for category A to minimize the length of the article.<\/p>\n

A. Trade and Economic Cooperation<\/b><\/span><\/p>\n

1. Milk and Milk Products<\/b><\/span><\/b><\/p>\n

New Zealand has a long history of supporting dairy development in Sri Lanka. The Colombo Plan, initiated in the 1950s, allowed New Zealand to provide dairy and agricultural expertise to developing nations, including Sri Lanka. For decades, New Zealand dairy companies have exported milk powder and other dairy products to Sri Lanka. This development initiative aims to pave the way for self-sufficiency in milk and milk products in Sri Lanka. Notably, New Zealand’s dairy industry is renowned for its wide range of cow’s milk products, both for domestic consumption and export. The industry produces over 1,500 unique dairy products and formulations derived from cow’s milk, covering a broad spectrum of categories, including milk powders, cheeses, yogurts, creams, and specialized nutritional products. Given this, the Memorandum of Understanding (MoU) between Sri Lanka and New Zealand may help diversify or expand the range of cow’s milk products in Sri Lanka.<\/p>\n

Sri Lanka can competitively export a variety of products to New Zealand (NZ) by leveraging its natural resources, skilled labor, and strategic geographic location. To remain competitive, exports should either fill a niche in the NZ market, provide better value, or possess unique appeal. Here are product categories that Sri Lanka can competitively export to New Zealand:<\/p>\n

2. Tea and Beverages<\/b><\/span><\/p>\n

* Ceylon Tea: Renowned worldwide for its quality, Ceylon tea can fulfill New Zealand’s demand for premium loose-leaf and specialty teas.<\/p>\n

* Herbal and Ayurvedic Teas: Niche health-conscious markets in NZ are growing.<\/p>\n

3. Apparel and Textiles<\/b><\/span><\/p>\n

* Ethical and Sustainable Clothing: Sri Lanka\u2019s apparel sector is recognized for its ethical manufacturing practices, aligning with New Zealand’s growing demand for sustainable fashion.<\/p>\n

* Lingerie, sportswear, and uniforms: High-quality garments for retail or B2B markets.<\/p>\n

4. Coconut-Based Products<\/b><\/span><\/p>\n

* Coconut oil (virgin and refined)<\/p>\n

* Desiccated coconut<\/p>\n

* Coconut milk and cream<\/p>\n

* Coconut flour and snacks are becoming increasingly popular in health-conscious and vegan markets.<\/p>\n

5. Spices and Herbal Products<\/b><\/span><\/p>\n

* Cinnamon (true Ceylon cinnamon) \u2013 a premium spice compared to cassia, which is more common.<\/p>\n

* Pepper, cloves, nutmeg, cardamom<\/p>\n

* Herbal Ayurveda products: Oils, balms, and supplements.<\/p>\n

6. Natural & Ayurvedic Cosmetics<\/b><\/span><\/p>\n

* Products made from herbs, spices, and coconut derivatives.<\/p>\n

* Skincare, hair care, and essential oils.<\/p>\n

* Strong market potential in wellness and organic product sectors.<\/p>\n

7. Processed Food and Agro Products<\/b><\/span><\/p>\n

* Tropical fruits (dried or canned): Mango, pineapple, jackfruit.<\/p>\n

* Jackfruit products (meat substitute)<\/p>\n

* Pickles, chutneys, and sauces<\/p>\n

* Ready-to-eat curries and meal kits: Especially for NZ\u2019s growing South Asian diaspora and adventurous eaters.<\/p>\n

8. Rubber and Value-Added Rubber Products<\/b><\/span><\/p>\n

* Industrial gloves, household gloves<\/p>\n

* Tyres, rubber mats, and other rubber-based items.<\/p>\n

* Sri Lanka has a mature rubber industry and can meet quality expectations.<\/p>\n

9. Handicrafts and Home D\u00e9cor<\/b><\/span><\/p>\n

* Wooden crafts, batik, coir products, and woven baskets.<\/p>\n

* Target niche lifestyle and fair-trade markets.<\/p>\n

10. Gemstones and Jewelry<\/b><\/span><\/p>\n

* Sapphires, rubies, and other precious\/semi-precious stones.<\/p>\n

* Handcrafted jewelry, especially if certified as ethically sourced.<\/b><\/p>\n

B. Education and People-to-People Links<\/b><\/span><\/p>\n

Scholarships and Student Exchange: New Zealand has provided scholarships to Sri Lankan students through Commonwealth and bilateral programs, especially in areas such as agriculture, engineering, and public administration.<\/p>\n

Migration and Diaspora: A small but growing Sri Lankan diaspora has established a presence in New Zealand, enriching the country\u2019s multicultural society. In recent decades, more Sri Lankan professionals and students have migrated to New Zealand.<\/b><\/b><\/p>\n

C. Sports and Cultural Ties<\/b><\/span><\/p>\n

Cricket Diplomacy<\/b>: Cricket is a significant connection between the two countries. The Sri Lankan and New Zealand national cricket teams<\/b> have played numerous international matches, creating sporting camaraderie and competitive respect.<\/p>\n

D. Cultural Exchange<\/b><\/span><\/p>\n

Cultural events, festivals, and community activities organized by the Sri Lankan community in New Zealand help maintain cultural ties.<\/p>\n

E. In the context of Multilateral and Development Cooperation<\/b><\/span><\/p>\n

Colombo Plan: Both countries were founding members of the Colombo Plan, which promotes development and technical cooperation in Asia and the Pacific. The UN and the Commonwealth: Sri Lanka and New Zealand collaborate on global issues, including climate change, human rights, and peacekeeping, through platforms such as the United Nations and Commonwealth forums. Regarding disaster relief and development aid, New Zealand has provided humanitarian assistance to Sri Lanka during times of crisis, including relief efforts following the 2004 tsunami and support for post-conflict reconstruction after the end of Sri Lanka\u2019s civil war in 2009.<\/p>\n

F. Modern Engagement and Future Prospects<\/b><\/span><\/p>\n

In recent years, both countries have explored ways to enhance their ties in areas such as climate resilience<\/b>, renewable energy<\/b>, education<\/b>, and technology<\/b>. Visits by political leaders, diplomatic missions, and participation in regional forums, such as the Indian Ocean Rim Association, continue to strengthen bilateral engagement.<\/p>\n

Notably, in 1958, New Zealand Prime Minister Walter Nash visited Sri Lanka, during which he inaugurated the National Milk Board and the Dental Training Institute, initiatives funded by the New Zealand government under the Colombo Plan. Deputy Prime Minister Peters’ visit continues this legacy of cooperation and mutual support. In summary, the Deputy Prime Minister’s visit on May 24, 2025, is set to be a landmark event, reinforcing the enduring friendship between New Zealand and Sri Lanka and paving the way for enhanced collaboration in various areas.<\/p>\n

Conclusion<\/span><\/strong><\/p>\n

The relationship between Sri Lanka and New Zealand, while modest compared to larger global powers, has remained friendly, cooperative, and steadily growing. Rooted in shared values stemming from their colonial past and nurtured through diplomatic, educational, trade, and cultural ties, both countries continue to seek ways to deepen their partnership in the 21st century. The visit of New Zealand’s Deputy Prime Minister and Minister of Foreign Affairs, Mr. Winston Peters, aims to commemorate and build upon the historical connections between the two nations. It holds significant historical importance, marking a pivotal moment in the evolving relationship based on enhanced cooperation in (i) trade and investment, (ii) agriculture, (iii) education, (iv) connectivity, (v) tourism, and (vi) sports. Given the trade gap, Sri Lanka must be strategic in narrowing it and achieving a surplus in the future, among many benefits, in the right direction. In conclusion, the Deputy Prime Minister’s visit on May 24, 2025, is set to be a landmark event or a new chapter, reinforcing the longstanding friendship between New Zealand and Sri Lanka and paving the way for enhanced collaboration in various areas for mutual benefits.<\/p>\n

*The writer, among many, served as the Special Advisor to the President of Namibia from 2006 to 2012 and was a Senior Consultant with the UNDP for 20 years. He was a Senior Economist with the Central Bank of Sri Lanka (1972-1993), asoka.seneviratne@gmail.com<\/i><\/b><\/span><\/i><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

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