Sri Lanka’s Cabinet of Ministers have approved the signing of a financing agreement with the European Union (EU), under which the country is to receive a grant of € 10 million to promote sustainable trade between the two sides, a Cabinet decision said.

The financing is to be directed toward an EU project expected to be carried out over four years, in partnership with the Ministry of Trade, Commerce, Food Security and Cooperative Development.

According to the decision, the project is aimed at encouraging trade practices that are in step with the green transition and the shift towards digital trade. In doing so, it is expected to strengthen sustainable trade ties between Sri Lanka and the EU, while also improving the country’s trade-related institutional capacity.

Furthermore, the project will support Sri Lanka’s efforts to meet the international standards that local exporters need to comply with in order to access EU markets.

The proposal to sign the agreement was submitted by the President, in his capacity as the Minister of Finance, Planning and Economic Development.