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    The Seventh Session of the EEC-Sri Lanka Joint Commission was
  held in Colombo on 11 and 12 March 1985.   The Sri Lanka
  delegation was led by Mr. G. Cumaranatunge, Acting Secretary,
  Ministry of Trade and Shipping who also chaired the meeting.  The
  Community delegation was led by Mr. Volpi, Director in the
  Directorate-General for External Relations.
    The Joint Commission reviewed recent developments in the
  economies  of the Community and Sri Lanka and noted an estimated
  growth rate in the Sri Lankan economy in 1984 of 6%.  The Joint
  Commission noted that the Community remains Sri Lanka's biggest
  trading partner (accounting for about 16% of her total trade in
  1984) and that mutual trade continued to expand.  The Joint
  Commission also noted  increased use by Sri Lanka of the
  Community's GSP scheme and the satisfactory functioning of the
  bilateral textile agreement.
    The Joint Commission reviewed the trade promotion programme
  undertaken with Sri Lanka which in 1984 included the financing of
  an adviser for the Sri Lanka Mission in Brussels, promotion in the
  jewellery and tea sectors and training with the Irish Export
  Board.  Further actions to be implemented in 1985 were considered
  in accordance with Sri Lankan priorities.
    In the field of economic cooperation, the Joint Commission
  considered the final phases of the projects on promoting Community
  investments in Sri Lanka in the rubber and jewellery sectors and
  the prospects for follow-up activities.  Two new sectors were
  discussed  for industrial cooperation : toys and handicrafts and
  certain branches of the electronics sector.
 
  framework of the contract financed by the Community for a senior
  energy adviser to the government of Sri Lanka.  It noted that,
  drawing on this experience, the EEC would sponsor a South Asia
  Regional Seminar on Energy later this year.
    With regard to development cooperation, the Joint Commission
  noted that in addition to the initial allocation of 15.4 million
  ECU Sri Lanka has benefited from a second tranche of 20 million
  ECU in favour of the Mahaweli Ganga scheme. 30 000 tons of cereals
  ./.
             
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  have been delivered and an allocation of 400 tons of skimmed milk
  powder has been made under the 1984 food aid programme.
    The Community undertook to consider for future implementation
  new projects of financial and technical assistance to be presented
  in the near future by Sri Lanka.  The Community also undertook to
  continue food aid in cereals in 1985 and, in addition, reiterated
  its intention to participate with other donors in the dairy
  project as defined by the World Bank.
    The Joint Commission was held in an atmosphere of cordiality and
  reflected efforts on both sides to make progress on matters of
  common concern.

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