Global giant Danish Maersk Line and Novo Nordisk seeking to invest in Sri Lanka

Boosting Sri Lanka’s international investment profile, two top global multinationals are moving for Sri Lanka entry – they are the world’s largest shipper Maersk Line and the frontline warrior battling the global diabetes pandemic, Nordisk A/S. Two other giants yet to be identified in green-tech and water management are also busy studying a Sri Lanka entry, as revealed on 12 January in Colombo.

New Delhi-based Danish Ambassador for Sri Lanka Peter Taksøe-Jensen was revealing Maersk Line & Nordisk A/S’ breakthrough entry plans for Sri Lanka to Minister of Industry and Commerce Rishad Bathiudeen on 12 January in Colombo.

The visiting Danish Ambassador was making a courtesy call on Bathiudeen at the Ministry of Industry and Commerce joined by the leading Lankan Businessman and Danish Honorary Consul General in Colombo Harry Jayawardena and a visiting New Delhi based Danish embassy official.

“The political developments in Sri Lanka are very interesting to follow. Still we also need to focus on bilateral economic objectives,” said Taksøe-Jensen and added: “Some of the largest Danish multinationals firms are interested in investing in Sri Lanka. The world’s largest container shipper Maersk Line is a Danish firm. I am pleased to say that it is planning to enter Sri Lanka and looking to invest in a new container facility and join the Colombo Port expansion-and set up a warehouse facility as well. Novo Nordisk A/S, the Danish multinational pharmaceutical firm, the world leader in insulin production, is also very interested in establishing a subsidiary here. Two other Danish multinationals in green-tech and water management also are closely studying Sri Lanka. They all are very interested to come in. What therefore we are looking at is more than just trade-investment partnerships as well! Let’s work together.”

Maersk Line is the world’s largest container shipping company since 1996. It operates 604 container vessels across the world and calls on 343 ports in 121 countries. Maersk Line is an operating unit of the A.P. Moller–Maersk, the Danish business conglomerate, which according to the Forbes magazine, is the third largest company in the entire Nordic region. Novo Nordisk A/S is the world’s leading diabetes care company with a 48% share of global insulin market. Headquartered in Bagsværd, Denmark, it is in the frontlines of supplying human insulin, whose rapid global demand growth is 10%-12% a year.

“Denmark-Sri Lanka bilateral relations extend a long time back and as for trade, since 2000, our bilateral trade increased by a huge 300% to $94 m by end of 2014,” said Bathiudeen responding to Taksøe-Jensen and added: “I stress that one reason for this dynamic bilateral relationship is the active nature of our Danish Honorary Consul General, Harold (Harry) Jayawardena. We believe that the Danish market can readily take in many of our primary exports such as rubber, tea, spices, ceramics and even our world class apparel. I welcome Denmark multinationals and we are ready to extend our fullest cooperation to them. Under the leadership of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe we have embarked on a new journey on an accelerated economic development. Sri Lanka is a well-known location in the international shipping map and Colombo ranks among the top 35 ports in the world, being also a historic stopover of the silk route. It’s now the only South Asian port that can handle above 10,000 TEU mark and therefore a great transhipment opportunity for shipping firms such as Maersk Line.” 

Jayawardena said: “It is time for closer B2B cooperation between our two countries. A strong Danish business delegation to Colombo is also on the pipeline and details are being worked out.”

Taksøe-Jensen did not reveal any initial investment values envisaged by Maersk Line or Novo Nordisk A/S.

Taksøe-Jensen and Minister Bathiudeen also discussed bilateral development cooperation and assistance at the 12 January meeting.