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Tuesday, 2 August 2016 00:49 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
Sri Lanka’s plans to boost foreign direct investment (FDI) through a raft of pro-business policies and incentives were mapped out in a landmark report titled ‘The Report: Sri Lanka 2016’, which was compiled and launched by global publishing, research and consultancy firm Oxford Business Group (OBG) in Colombo yesterday.
The report highlights in detail the Government’s vision for boosting economic growth, which places tourism development high on the agenda and includes a target of attracting four million tourists by 2020.
“With so much potential and a relatively small population, Sri Lanka has every chance to emerge as an advanced economy. We think Sri Lanka is one of the hidden pearls in Asia,” OBG Managing Editor for Asia, Paulius Kuncinas, said while launching their first country report yesterday.
He said that with foreign arrivals up 18% in 2015 and expected to more than double by 2020, tourism was on track to become a major contributor to GDP.
The report also emphasises the overhaul earmarked for Sri Lanka’s transport infrastructure, which will enable the country to build on its status as a global shipping hub.
Oxford Business Group Managing Director Paulius Kuchinas (second from left) and Regional Manager Brook Butler (second from right) showcasing the Sri Lanka Report 2016
As the country looks to broaden its investor base, it is hoped that policy changes and plans brought in by the new Government will attract the added investment needed to help the country reach its growth goals, the report noted.
Noting that the country had demonstrated and maintained a positive and constructive attitude even during difficult times, Kuncinas pointed out that if the country could build on the steps it had already taken then there was no reason it should not continue to prosper. Sri Lanka has developed new avenues for significant expansion, such as its burgeoning tourism sector, and investments in shipping and infrastructure. “This is why we can confidently say that Sri Lanka is open for business.”
The Report: Sri Lanka 2016 analyses the key role assigned for the industrial and manufacturing sectors in helping to diversify the country’s exports. It also considers the challenges that the country faces in implementing structural reforms, which include both global economic headwinds and domestic barriers to growth.
He said Sri Lanka’s strategic geographical location, which gives it proximity to several key markets, is a major draw for investors, while new trade agreements will also support future growth. Located on the main sea trade routes of Europe and Asia, Sri Lanka has become a leading shipping and trans-shipment hub.
Industry and Commerce Minister Rishad Bathiudeen, Deputy Foreign Affairs Minister
Despite the fact that tea, rubber and spice exports remain a major contributor to Sri Lanka’s economy, the Government is keen on moving towards a broader basket of high-valued goods as it looks for ways of narrowing the trade deficit.
“Our first economic report on this fascinating island nation points to a country ripe with opportunities that has begun the transition to globally integrated player,” Kuncinas said.
He pointed out that while there will inevitably be challenges on the road to reform, it was clear from the Group’s research that Sri Lanka had already begun laying the foundations for change.
The Report: Sri Lanka 2016 report marks the culmination of more than six months of field research by a team of analysts from OBG. The publication assesses trends and developments across the economy, including macroeconomics, infrastructure, banking and other sectoral developments. The publication is available in print and online.
“The Government has signalled its intention to create a transparent and inclusive system that will support economic expansion, backed up by an investor friendly environment. I look forward to following the country’s progress as it moves forward with its reforms and takes its place on the world stage,” he added.
OBG’s report contains contributions from President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe as well as international personalities. It also includes detailed sector-by-sector guide for investors.
The launch included a lively debate on the theme ‘Sri Lanka: Investment Opportunities 2016-2017’ featuring Board of Investments (BOI) Chairman Upul Jayasuriya, Foreign Affairs Deputy Minister Dr.Harsha de Silva, First Capital Holdings CEO Dilshan Wirasekara and Standard Chartered Sri Lanka CEO Jim McCabe.
