The Swedish Government on Thursday decided to close its Embassy in Colombo and the Consulates-General in Kaliningrad, Canton, Los Angeles and New York.

Carl Bildt, Minister for Foreign Affairs, said that the close-downs are a necessary part of balancing the Ministry for Foreign Affairs budget and adapting it to its allocated appropriations.

"When I took office as Minister for Foreign Affairs in autumn 2006, the Ministry had a budget deficit of over 50 million kronor (€4.5 million, $6.7 million). The deficit had been built up over several years and the previous government maintained activities that had no financing. Of course it is an untenable position to be pushing this deficit in front of us”, Carl Bildt said in a statement.

“We must ensure that we have an effective and professional Foreign Service within the existing budgetary framework. With these changes, we will balance the budget and at the same time renew working methods", he added.

Alongside the shut-downs, the number of at the staff is to be slashed by 100 over the period 2008-2010 and the Foreign Service's property costs are to be reduced by 50 million kronor annually.

The closure of the Consulate-General in New York is to be completed by 31 January 2010 at the latest, in Los Angeles by 31 December 2009, Colombo 31 March 2010, Kaliningrad 31 October 2009 and Canton 30 November 2009.

The Embassy in Washington will take over responsibility for the nine honorary consulates that currently report to the Consulate-General in Los Angeles, the statement said.

In New York, the government intend to open an honorary consulate-general to provide certain services to Swedish citizens.

Trade issues will continue to be managed by the Swedish Trade Council and the Invest in Sweden Agency in New York and the Embassy in Washington, the statement said.