Foreign missions have been the pillars of trade promotion and in particular, of export and export-
oriented investment. In Sri Lanka, the potentiality in export promotion to Germany is immense.
However, it is discernible that there is no coordinated effort in promoting trade in Sri Lanka by
foreign missions. Therefore, this research examines the role of foreign missions in promoting
international trade between Sri Lanka and Germany especially focusing on Electrical and
Electronic Sector. The case study is based on the empirical evidence of Sri Lankan foreign
missions promoting electrical and electronic exports in Germany. Potential growth-enhancing
factors will benefit from increased global economic integration through trade promotion
activities undertaken by the host country and the foreign mission. A qualitative methodology was
used to understand the stakeholder perspective of the role of foreign missions. Analysis of data
collected through semi-structured interviews derived the results that trade fairs and Business to
Business meetings as the most effective trade promotion activities. Findings of the study
confirms six (6) vital roles of a foreign mission which are internalizing industries, promoting,
business intelligence, stakeholder communication, building strategic relationships and inter-
governmental engagement respectively. The paper points out managerial and policy implications
such as pro-activeness of the head of foreign missions and strategic and trustworthy relationships
between the countries. The study concludes that the activities carried out by the Sri Lankan
Foreign Mission in Germany does not satisfy the exporters‟ expectations and requirements.
Further this study recommendations are provided to both German and Sri Lankan Governments
and foreign missions
Introduction
Although the world economy was recovering in 2017, notwithstanding ups and downs
(Diplomatic Bluebook, 2018), in terms of Gross Domestic Product (GDP) growth, Asia is
continuing to grow rapidly, and it is expected to do much better than other regions in the near
(Ministry of Foreign Affairs & Bandaranaike International Diplomatic Training Institute,
2019/2019). With this rapid pace of global economic growth, Sri Lanka as an emerging economy
should focus more on its supply chain and promotional aspects of their products and services in
order to compete with other countries (Ministry of Foreign Affairs & Bandaranaike International
Diplomatic Training Institute, 2019). Foreign Missions (FMs) have been the pillars of promoting
trade and specifically in relation to exports and export-oriented investments (Rose, 2005). FMs
popularly act as information sources, albeit with many other ways of obtaining information in
this era such as the Internet and other data sources (Rose, 2005). FMs also play a major role in
attracting buyers and creating linkages (Rose, 2005).
Background of the Study
At present Sri Lanka maintains 52 High Commissions/Embassies overseas (MFA 2019). The
most important activities carried out through a foreign mission in general are:1. Business
Intelligence, 2. Assistance with fairs, trade missions and networking, 3. Problem solving and
assistance with trade disputes, and 4. Business partner search and negotiation (Kostecki and
Naray, 2007). In Sri Lanka, the Electrical and Electronic (EE) sector is one of the emerging
sectors supported by the National Export Strategy (NES) and currently the sector serves niche
markets that have great potential to diversify their markets (Electrical and Electronic
Components, 2018). The EE sector is also considered to have potential to stimulate innovation,
research and development (R&D) and investment in the country (Electrical and Electronic
Components, 2018). Sri Lanka is considered as a country with a strong leadership in its foreign
policy based on the principle of non-alignment which balances the interests and influence of
powerful neighbouringcountries. Sri Lanka‟s relations with the Federal Republic of Germany
were established on 9 December 1953 (Germany | Ministry of Foreign Affairs Sri Lanka, 2017).
Sri Lanka‟s engagement with regional and international fora, including the United Nations, the
European Union, SAARC, BIMSTEC and ARF has demonstrated the transparent and
constructive engagement of the Government through its foreign relations at all levels (Ministry
of Foreign Affairs Sri Lanka, 2019). The Mission of the Ministry of Foreign Affairs (MFA) is
defined as to promote, project and protect Sri Lanka‟s national interests overseas, in consonance
with the foreign policy of the Government of Sri Lanka. In 2018 MFA, has continued to enhance
Sri Lanka‟s engagement in the political, economic, social and cultural spheres, strengthening the
concept of „Friendship with all, and enmity towards none‟ (Ministry of Foreign Affairs Sri
Lanka, 2019). 1.2 Research Problem Certain challenges highlighted in the literature when
promoting EEC as a major export of Sri Lanka are: Firstly, uncertainty arising from information
asymmetry is identified as one of the major trade barriers especially for new destinations mostly
in developing countries. Secondly, barriers of language, bureaucratic procedures and all the
security concerns that contribute to the sunk cost a firm has to take into account when entering a
new market (Bagir, 2017). However, in this process of promoting exports in the EEC sector in
the international market the foreign missions are recognized as the responsible stakeholder
through their diverse networks. 1.3 Research Objectives This study aims: „To explore the role of
the foreign mission in promoting exports in the host market’ and ‘To identify the effective
international trade promotional activities organized by the foreign mission in the host market’ 1.4
Research Questions The following questions aim to explore the project objectives of this study.
1. What are the roles of the Sri Lankan foreign missions (Embassy and Consulate) in Germany in
promoting international trade in the host market? 2. What are the most successful international
trade promotional activities organized by the Sri Lankan foreign mission in Germany? 3. What
are the most effective trade promotion activities that should be carried out by foreign missions?
2. Literature Review 2.1 Developing Conceptual Framework The literature on the subject states
that the role of foreign missions in promoting trade between countries is unclear. Many
commonly ask whether the activities carried out by foreign missions are actually client
requirements. Therefore, foreign missions should identify and understand the requirements of
stakeholders prior to carrying out their activities.
