COLOMBO, SRI LANKA (October 29, 2003) - Earlier today, the U.S. Trade and Development Agency (USTDA) and the Ministry of Policy Development and Implementation of the Government of Sri Lanka (GOSL) signed a Memorandum of Understanding (MOU) related to the implementation of the U.S. Customs and Border Protection's (CBP) Container Security Initiative (CSI) in Sri Lanka. The MOU was signed at the U.S. Embassy in Colombo. Mr. James F. Entwistle, Chargé d'Affaires at the U.S. Embassy in Sri Lanka, signed the MOU on behalf of the U.S. Government. Mr. Charitha Ratwatte, Secretary of the Ministry of Finance, signed on behalf of GOSL.

The implementation of CSI has significant trade and security implications for both the United States and Sri Lanka. The goal of the CSI is to secure oceangoing sea containers, which currently are indispensable but vulnerable links in the chain of global trade. CSI consists of four core elements: (1) establishing security criteria to identify high-risk containers; (2) pre-screening containers before they arrive at U.S. ports; (3) using technology to pre-screen high-risk containers; and (4) developing and using smart and secure containers. Sri Lanka is the first country to sign on to CSI since the initiative was expanded to include ports that ship substantial amounts of cargo to the United States and have the infrastructure and technology in place to participate in the program. Initially, CSI was limited to the top 20 mega-ports worldwide.

CSI requires the use of non-intrusive inspection equipment during cargo inspections. Under the MOU signed today, USTDA and GOSL recognized their shared interest in promoting economic cooperation and secure trade between Sri Lanka and the United States. The MOU also acknowledges that USTDA has entered into a contract with a U.S. firm, Aerospace Services International, Inc., of Chantilly, Virginia, to assist GOSL in: (1) evaluating its cargo scanning system needs based upon surveys of Sri Lanka's air and sea ports and consultations with GOSL authorities; (2) preparing draft tender documents; (3) advising GOSL on financing options; and (4) evaluating tenders.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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