Finnish support to Sri Lanka hailed; talks in Helsinki for double tax avoidance deal

Economic Development Minister Basil Rajapaksa recently hailed the substantial support for socio-economic development in Sri Lanka from Finland.

This was emphasised when Finland’s outgoing Ambassador to Sri Lanka Terhi Hakala paid a courtesy call on Minister Rajapaksa.

“Finland has generously assisted Sri Lanka over the years in country’s economic and social development drive. It had helped In particular for the development of the Colombo National hospital and following the Tsunami disaster.  Finish Red Cross has supported post conflict resettlement projects.

Since Sri Lanka was upgraded to middle income status, Finland has stopped bilateral assistance. However, following the end of the conflict they have contributed a large amount of money via the Finish Red Cross for resettlement and the assistance to IDPs over the last three years. The FINN fund and the Nordic investment Bank are offering soft loan facilities for government projects awarded to Finish companies,” Minister Rajapaksa said.

However there has been a decline in Sri Lanka’s trade turnover with Finland in recent years. The two countries need to work together to further expand bilateral, trade and commercial relation and encourage Finish investors to invest in Sri Lanka, the Minister further said.

Outgoing Ambassador said internal conflict in Sri Lanka had some impact on Finish Sri Lanka bilateral relations. But now Sri Lanka has achieved peace and stability. Therefore she believes that Finish business community and investors will find their way into Sri Lanka soon. “Little by little they are finding Sri Lanka again,” she said.

She said Finland will continue its grant assistance program and soft loan facilities. It will provide grants for hospital development projects in Jaffna, Colombo and Kandy next year.

Minister and ambassador decided that a delegation from the Department of Inland Revenue of Sri Lanka to visit Helsinki in September 2012 to hold the first round of negotiations on the revision of the bilateral agreement on the Avoidance of Double Taxation.

This revision is crucial in encouraging Finish investors to invest in Sri Lanka. The exciting agreement was signed in 1982 and with accession to the WTO and new EU regulations, many of the provisions of the agreement need revision. They also agreed to exchange trade delegations. The Ambassador expressed the Finland investors’ desire to invest in power and energy, health care, construction, Pharmaceuticals and infrastructure development and real investment.

There is good potential to promote tourism between the two countries and Minister and Ambassador agreed to have a joint promotional program for that. They also decided to explore the possibility of operating charter flights during the winter season to encourage Finish tourists to visit Sri Lanka.

Since Finland is seeking health sector workers, particularly nurses from overseas, Ambassador said Finland will pay its attention to the recruitments of health sector workers from Sri Lanka.

The Honorary Consular for Finland in Sri Lanka Ashroff Omar, Ministry of Industries and Commerce Secretary Anura Siriwardhana and Sri Lanka Tourism Promotion Bureau Chairman Bashwara Senanka Gunaratna also participated at this occasion.