Monday, October 12, 2020

Sri Lanka to resume cargo flights from EgyptAir

 


The very first EgyptAir Cargo flights, Egypt's national freighter, landed consecutively on 2 and 5 August at Bandaranaike International Airport. With a total of 188 tonnes of Sri Lankan items, the freighters departed BIA for export destinations worldwide, benefiting from EgyptAir's extensive global network. Ambassador El Saharty praised the efforts of both Forwardair Aviation (EgyptAir's Cargo General Sales Agent in Sri Lanka) General Sales and Operations Manager Sunil Adikaram and his efficient team on the one hand, and EgyptAir Cargo's team in Cairo on the other, to achieve this momentous attainment.

Ambassador El Saharty disclosed that feasibility studies are now being carried out on both sides to consider several options to create a daily transit freight route for EgyptAir via either BIA or MRIA, profiting from the growing facilities in both hubs. In recent years, bilateral trade rates between Egypt and Sri Lanka have averaged $50 million per annum. Even during the recent COVID-19 lockdowns, exporters, trade authorities, and diplomatic missions worked hard to promote the regular and smooth flow of trade in both countries.

As a result, during the two months of April and May 2020, Sri Lanka was able to export a total of 738 tonnes of its goods to Egypt, including 264 tonnes of Ceylon tea, 208 tonnes of desiccated coconut, 26 tonnes of cocoa powder, 234 tonnes of rubber products and seven tonnes of PPE. Similarly, during the same time, Egyptian goods, in particular citrus fruits, were exported smoothly to Sri Lanka. Enormous trade potential has yet to be discovered and exploited.

It is worth noting that the first bilateral agreement for the operation of daily flights between Egypt and Sri Lanka (then Ceylon) was signed in London in 1950, while the early trade and payment agreement concluded in Cairo in 1954. In 2005 an additional revised air transport agreement terminated.

Since the early 1940s until the early 1970s, Colombo and Cairo linked via direct daily flights operated by Air Ceylon, while EgyptAir worked intermittently between the two capitals in subsequent years. The future provides tremendous opportunities to strengthen trade and linkages between the two countries.

OSL Take: The announcement by EgyptAir, a global leader in the industry, would be recommencing outbound flights from Colombo from this Saturday is a welcome sign. It heralds the recommencement of economic activities between Sri Lanka and other countries. Sri Lanka's economic activities have already restarted after the COVID 19 closure. Sri Lanka looks flattering on the return to normalcy.

Sri Lanka's airport and aviation industry is currently undergoing a facelift with the government of Sri Lanka, giving prominence to the development and upliftment of the country's airports, including the main international airport in the island. Sri Lanka's national carrier is also undergoing a restructuring program.

The airline is also on the lookout for a foreign investor to form a joint venture operation for the airline. The ease of doing business environment and the strong trade ties with foreign nations have made Sri Lanka the ideal business destination in the South Asian region. All this indicates the growing business/investment potential in Sri Lanka's airport and aviation industry.

 VBS/AT/12/10/2020/Z_TB10

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