In a significant step towards strengthening bilateral trade ties, the newly appointed UK Trade Envoy to Sri Lanka, Lord John Hannett of Everton, made his inaugural official visit to Colombo this month. A respected Labour life peer and veteran trade unionist, Lord Hannett brings with him a wealth of experience spanning over four decades in championing workers’ rights, fair economic policies and inclusive growth.
Before entering the House of Lords, Lord Hannett served as the General Secretary of the Union of Shop, Distributive and Allied Workers (USDAW) from 2004 to 2018, where he played a pivotal role in improving wages and conditions for retail and distribution workers across the UK. His commitment to economic justice also helped him serve for over a decade as a Commissioner on the UK’s Low Pay Commission, where he was instrumental in shaping national policy on the minimum wage. In recognition of his contributions, he was awarded an OBE in 2020 and elevated to the peerage in 2024.
As the UK Government’s Trade Envoy, Lord Hannett is tasked with unlocking new opportunities for British businesses, promoting ethical and sustainable trade and forging partnerships in key markets. With Sri Lanka undergoing a crucial phase of economic recovery and reform, his visit comes at a timely moment for deepening UK engagement—particularly in sectors such as education, professional and financial services, IT-enabled services, and renewable energy.
In this exclusive interview with the Sunday Observer, Lord Hannett outlines his priorities for fostering mutually beneficial trade, the challenges UK businesses face in the Sri Lankan market, and how values like fairness, transparency, and environmental sustainability can be embedded into the UK-Sri Lanka trade relationship. From empowering women-led businesses through the SheTrades hub to supporting Sri Lanka’s transition to clean energy, Lord Hannett’s approach reflects a modern, inclusive vision for global trade.
Excerpts of the interview:
Q: What are your immediate priorities and concrete initiatives during your first official visit as Trade Envoy to Sri Lanka?
A: As this is my first official visit to Colombo since being appointed as the UK’s Trade Envoy to Sri Lanka, my immediate priority is to build relationships—with Government leaders and industry figures to gain a first-hand understanding of the opportunities and challenges in this dynamic market. This visit will help me to continue supporting and building on the close trade ties, especially in sectors where the UK has strong partnerships such as education, financial and professional services, manufacturing, IT-enabled services, and renewable energy. I’m particularly interested in hearing directly from stakeholders about how we can make those partnerships more effective and sustainable by identifying concrete areas for collaboration that deliver benefits for both our countries.
Q: Which specific sectors among education, financial services, renewable energy, and IT-enabled services offer the greatest immediate potential for UK businesses in Sri Lanka?
A: All of these sectors offer strong potential, but I see particularly immediate opportunities in education and professional services, with renewable energy being medium to longer term.
The UK is a global leader in higher education, skills training, and Transnational Education (TNE), and there is a growing appetite in Sri Lanka for quality learning pathways and vocational development. Sri Lanka is already a significant partner as the second largest market for UK TNE. I had an insightful discussion with a range of UK educational providers across English language training, higher education pathways, professional skills and TNE, and was genuinely impressed with the meaningful impact and role they all play in developing the country’s talent pool.
The stand-out strength of Sri Lanka that UK investors speak to is the extremely capable workforce available to them that continues to remain a strong reason for their sustained growth and presence in the country.
This ties with the opportunity for professional services. With availability of high-value talent, the ability to deliver analytical, specialist, and sometime niche professional and IT-enabled services have created an excellent platform for Sri Lanka. I heard this from my discussions with HSBC and LSEG, who shared the fantastic work the teams in Sri Lanka are delivering for their global operations.
Renewable energy is another area where we can make an impact together: with Sri Lanka’s ambitions to transition to clean energy sources, UK companies with expertise in wind, solar, and energy storage can be valuable partners.
Q: What are the most significant trade barriers currently impacting UK-Sri Lanka trade, and how do you propose addressing them?
A: Some of the key barriers include regulatory uncertainty, complex customs procedures, bureaucratic approvals processes, and a need for greater market transparency. These issues can deter businesses from entering the market or scaling up operations. I will work closely with the British High Commission, UK businesses, and Sri Lanka’s authorities to promote dialogue and practical solutions—for example, supporting regulatory reform, encouraging digitalisation of trade processes, and advocating for consistent and fair application of rules. Trust and predictability are crucial for trade to flourish.
Q: Given your extensive background advocating for workers’ rights, how will you ensure that trade growth between the UK and Sri Lanka promotes fair labour standards and ethical practices?
A: Having spent most of my career in the trade union movement—first as a workplace representative and eventually as General Secretary of Union of Shop, Distributive and Allied Workers (USDAW) for 14 years—I’ve always believed that economic development must go hand in hand with protecting workers’ rights and ensuring decent conditions for all. I also served as a member of the Low Pay Commission for 11 years, during which we recommended the minimum wage—a vital step in securing fair pay for the lowest-paid workers and reducing in-work poverty.
I also served on the Low Pay Commission and the TUC Executive Committee, where I worked to shape national policy on fair pay and ethical employment. I see encouraging parallels between the UK’s approach to inclusive, fair growth and the priorities of Sri Lanka’s Government, which also has strong labour roots. This alignment gives us a unique opportunity to shape a trade relationship that prioritises dignity at work, responsible business conduct, and long-term social progress. I will use my platform as Trade Envoy to ensure that as we grow UK-Sri Lanka trade; we do so in a way that upholds the values we share—fairness, opportunity, and respect for labour standards.
Q: How does the UK’s post-Brexit global trade strategy specifically impact relations with markets such as Sri Lanka?
A: The UK’s post-Brexit trade strategy is about deepening ties with dynamic and emerging economies beyond Europe. The UK Government has been very clear that growth is the number one mission. The UK’s modern Industrial Strategy which will be launched shortly is central to that growth mission. It will look to take advantage of the UK’s unique strengths and untapped potential, enabling our already world-leading services and manufacturing sectors to adapt and grow, and seizing opportunities to lead in new and emerging sectors.
Sri Lanka, with its strategic location in the Indian Ocean and a diverse and skilled workforce, is an important partner to the UK. While we want to explore how we can develop new opportunities, we also want to ensure Sri Lanka receives support to widen access to the UK. Our Developing Countries Trading Scheme (DCTS) offers preferential access to the UK market. We are eager to see Sri Lankan exports benefit further from this and have been delivering UK-funded programs to encourage diversification of the export potential to the UK.
Just before I came out to Sri Lanka, I met some Sri Lankan exporters who were at a trade fair in London. They have been supported through the UK Trade Partnerships Programme which has provided support in marketing, branding, product development and packaging, as well as facilitating participation in global trade fairs. During my visit, together with the Export Development Board (EDB) and International Trade Centre (ITC), I launched the webpage for the SheTrades hub in Sri Lanka. UK funding supported the establishment of this hub in Sri Lanka to support women-led businesses in their global market expansion ambitions. As the host institution, the EDB will take forward this great initiative and I look forward to seeing the successes which stem from it.
More broadly, we want to foster two-way trade and investment partnerships that are mutually beneficial and forward-looking.
Q: What concrete measures will you advocate to promote environmentally sustainable trade between the UK and Sri Lanka, particularly in renewable energy projects?
A: One of the most powerful ways trade can support sustainability is by enabling the diffusion of green technology and expertise. I’ll be advocating for partnerships in areas like solar and wind energy, grid modernisation, and sustainable transport. While I haven’t had the chance to explore this in much detail during this visit, through my future engagement and market visits, I hope to understand the Government’s ambitions and timelines on establishing policy frameworks that accelerate climate-aligned investments while ensuring they deliver for local communities and economies.
Q: Based on your early interactions, what are UK businesses most concerned about when it comes to entering or expanding in Sri Lanka’s market?
A: UK businesses are enthusiastic about Sri Lanka’s potential, but they’ve flagged concerns. Top among them is economic stability, and continuing to show positive progress in meeting the targets and milestones set through the IMF program. Investors are also cautious of economic impacts once debt repayments commence in a few years. Following this are concerns related to policy stability, clarity of regulations, excessive approvals process including regulatory hurdles, and challenges in repatriating profits are common themes. There’s also interest in better understanding local consumer preferences and business culture. My role is to help bridge that gap—by providing clear information, advocating for smoother market access, and helping UK businesses find trusted local partners.
Q: Sri Lanka is navigating a challenging economic recovery. How can UK trade and investment support Sri Lanka’s economic stability while ensuring mutual benefits?
A: UK trade and investment can play a constructive role by supporting job creation, innovation, and skills development. This includes building capacity in sectors such as renewable energy and financial services, where UK expertise can complement Sri Lanka’s development goals. The UK is also a strong partner in supporting governance reforms and public sector efficiency, which are essential to economic resilience. Ultimately, a thriving Sri Lankan economy benefits both our countries by creating a more attractive, stable, and predictable environment for trade.
