Belgium keen to enter manufacturing in Sri Lanka

“Use our FTAs with India and Pakistan,” – Minister of Industry and Commerce  Rishad Bathiudeen

Belgium, a top diamond supplier to Sri Lanka, is keen to invest in manufacturing and consulting in Sri Lanka. “We invite Belgian investors to set up here and use our FTAs with India and Pakistan to access the South Asian market,” said Minister of Industry and Commerce of Sri Lanka Rishad Bathiudeen.

Bathiudeen was addressing the 28 member Belgian business delegation visiting the Sri Lanka Expo 2012 held from 28 March to 31 March 2012 in Colombo when he expressed these thoughts.

The delegation included President of the Belgolux-Sri Lanka Business Council Wim Ceriez and Consul for Sri Lanka in Belgium and Secretary of the Belgolux-Sri Lanka Business Council Monique De Decker Deprez.

Members of the Belgian business delegation inquired into the potential of Sri Lanka’s manufacturing/industry and consulting sectors. Bathiudeen also clarified various aspects on Sri Lanka’s new economic upswing and strong GDP growth.

“We commend Belgium’s private sector and this delegation specifically, for visiting the Expo 2012 event. We have identified that fish, apparels, precious stones, activated carbon and rubber tyres are Sri Lankan exports products that show strong potential in the Belgian market and we believe there’s scope for Belgian investors in these sectors here,” Bathiudeen added.

Further explaining Sri Lanka’s new investment potentials for Belgium, Bathiudeen said: “Even though the World Trade Organisation had forecasted only a 5.8 per cent world export growth for 2011, Sri Lanka’s export sector showed strong resilience by registering a highly commendable growth rate of 22.37 per cent in comparison to 2010.  

“Year 2011 saw export earnings, reaching $10.4 billion, thereby surpassing the previously envisioned export target of $9.1 billion for the same year. We also recorded 8.3 per cent GDP growth in 2011 which is one of the highest since our independence. During this new economic upswing, many opportunities are open for Belgian investors in Sri Lanka.

“Among key sectors are tourism and hotel development, urban condominium development, Sri Lanka’s industry sectors including value addition industries and ICT/BPOs. More than 6,000 product lines are accessible in Indian and Pakistani markets through the FTAs we signed with them.

We invite you to use Sri Lanka as a base to reach the South Asian markets.”   

According to the Department of Commerce of Sri Lanka, Sri Lanka’s trade with Belgium has shown an upward trend over the last few years. The total trade turnover of $367.90 million in 2009 has increased by three per cent to reach $386.12 million in 2010. Sri Lanka also has had a favourable balance of trade with Belgium over the years.

Diamonds play a key role in bilateral trade with 58 per cent of exports and 87 per cent of imports to and from Belgium in 2010.

The other main items of exports are gloves, mittens and mitts, T-shirts, singlets and vests, women’s/girl’s suits, ensembles and jackets. Other items of imports from Belgium are tobacco, medicaments, plates, sheets and strip of plastics and woven fabrics of cotton.

Economic and Commerce Minister of the Embassy of Sri Lanka in Belgium R.D.S. Kumararatne and Department of Commerce Deputy Director Ashoka Godawita were also present during the sessions.