Industry Minister invites MoU keen Malta to local manufacturing

In the new era of development, Sri Lanka is now open to receive more foreign investment. We encourage Malta to specially enter the sectors of construction, value added tea, prefabricated building materials, gem and jewellery, and leather products among others, says Rishad Bathiudeen, Minister of Industry and Commerce.

Malta High Commissioner for India & Sri Lanka, Theresa Cutajar in discussion with the Minister of Industry & Commerce Rishad Bathiudeen on 10 May

Minister Bathiudeen was addressing Theresa Cutajar, Malta High Commissioner for India and Sri Lanka on 10 May. Theresa Cutajar is the first ever High Commissioner from Malta to present credentials in Sri Lanka. Cutajar hinted that Malta has the cost advantage opportunity to enter Eurozone, much needed by Sri Lanka.

“The economies of Sri Lanka and Malta are complimentary and I believe that we can work out a Memorandum of Understanding (MoU) to boost our bilateral trade relations” said Cutajar whose presence graced the Export Development Board offices of Colombo. “Perhaps setting up garment manufacturing facilities in Malta may give Sri Lanka the needed cost (competitive) advantage for the European markets. Sri Lanka can use Malta as a hub to enter no less than 27 European economies and even the north African countries which are very nearby. We encourage manufacturers of pharmaceuticals, ICT and financial industry firms who are looking at Eurozone to invest in Malta” she said.

Addressing Cutajar, Minister Bathiudeen said: “Even without special tariff concessions, Sri Lanka’s apparel industry competed well in Europe due to its high quality” and said “I am given to understand that Malta is pursuing a policy of gradual economic liberalisation allowing greater role for market forces, which makes it possible for partnership between the two countries.

As you may already be aware, Sri Lanka also has an open economy with a liberal international trade policy which Malta can make use of. In the new era of development, Sri Lanka is now open for investment specially in the sectors of construction industry, tea in value added form, processed vegetables and fruits, prefabricated building materials, tents, sails for boats, activated carbon, gem and jewellery, leather products and ceramic and porcelain.”

A Eurozone economy, Malta’s well trained workers and low labour costs helped it to earn the reputation of a manufacturing hub for the rest of Europe.

 In addition to manufacturing, its economy depends on tourism and trade. For its part, Sri Lanka continued to report a positive trade balance with Malta and in 2010, a US $ 0.92 million positive trade balance with Malta was seen. The total trade turnover with Malta was US $ 1.85 mn in the same year.

 “I believe that the presently small bilateral trade between Sri Lanka and Malta shows huge unrealised potential for further trade expansion between the two countries and I invite Malta to enhance bilateral trade cooperation further” Minister Bathiudeen said.