Nordic cooperation has developed over the years and across more areas of activity. During Prime Minister Modi’s visit to the Nordic countries at the end of May this year, the importance of Nordic companies working together in global markets was particularly highlighted. However, the focus seems to be on the larger companies, even though it is well known that small and medium-sized enterprises (SMEs) are the ones creating jobs at home, even in export.
During Prime Minister Narendra Modi’s visit to Sweden and Norway, relations with several Nordic countries were strengthened:
- Finland was upgraded to a strategic partner in digitalization and sustainability.
- Sweden became a broader strategic partner.
- Norway entered into a green strategic partnership with India.
- Bilateral meetings were also held with Denmark and Iceland.
Despite relatively small populations, the Nordic countries are leaders in innovation, technology, sustainable development, and institutional stability. For many countries around the world, this is valuable at a time when the world is characterized by technological competition, unstable supply chains, and the need for green transition.
Jakob Wallenberg spoke about the Nordics and the Nordic Compass collaboration in an interview on Ekot on Saturday, June 13. Nordic Compass is an industry alliance that brings together more than 25 leading companies and foundations in the Nordic region. The problem again is that the focus is on the large companies.
Even at this year’s Almedalen Week, the Nordics and expanded business cooperation were discussed.
“The Nordic cooperation has become much stronger in recent years, especially in the security area. There are also great opportunities for even closer cooperation between politics and business in the Nordics,” said Gunnar Strömmer.
Many agree that we should cooperate more in the Nordics, but how can it be made easier for SMEs? There are smaller markets where Nordic companies could break in together despite being competitors at the core. How can Nordic SME companies work more together and still receive support from their respective home countries individually?
There are many markets where the proposal for deeper cooperation could be implemented, but let us take Sri Lanka as a nearby example under the shadow of India.
Strategic Location – Global Opportunities
Sri Lanka’s geographical position makes the country a strategic hub in global trade. Located along some of the world’s busiest trade routes, Colombo plays a central role – and its port is unique in South Asia in handling the latest generation of mega container ships.
This central position makes Sri Lanka an attractive base for international operations – whether it involves remote work, regional hubs, or establishing offices for global cooperation. Free trade agreements with many countries in the region also contribute to more and more companies establishing themselves there.
Since its independence, the Nordics have supported the country through aid and diplomacy. During the civil war, a Nordic observer mission was present. Many Nordic countries have had embassies there, but since 2023 there is no Nordic embassy on site. Sweden closed its embassy in 2010, and Norway in 2023. Diplomatic presence is managed by appointed honorary consuls. The Nordic embassies in New Delhi have dual accreditation to Colombo. Of course, it is difficult with limited resources to cover even the smaller country just south of the giant. It should be emphasized that they do what they can, but the proposal in this article is that the Nordics should cooperate in places where our presence is limited.
What can be done better to facilitate for smaller companies wanting to export to or invest in a market like Sri Lanka?
- Establish a Nordic trade office staffed on a rotation basis by personnel from the nearest embassy (in this case New Delhi). This creates a presence and shows the Nordic flag. A visiting company from Sweden or Finland feels welcome even if the office is staffed by a Danish official at the time.
- Do not charge fees for SMEs participating in Nordic delegation trips. This lowers the threshold to new markets. Come back when they have grown instead.
- Use the Nordic business councils that exist for many markets as well as the local councils and national chambers of commerce. Assign tasks to them. It costs little but creates continuity and visible local presence.
Many will surely think this proposal is naive, but SMEs must be better supported, and the Nordics are a powerful brand. If the Nordics can cooperate on the observer mission in Sri Lanka or many UN missions, they can also do so here.
Leif I Ohlson
Founder of House of Sri Lanka AB and the Sweden-Sri Lanka Business Insights network
Background in the Armed Forces and UN missions in former Yugoslavia and district manager of the Nordic Observer Mission in Sri Lanka.
Secretary-General 2016-2026 Sweden-Sri Lanka Business Council