Sri Lanka’s safe haven status as destination for FDI appeals to investors: Rishad

Dubai: Sri Lanka’s safe haven status as a destination of foreign direct investment has increased its appeal to investors from the UAE, Minister of Industry and Commerce Rishad Bathiudeen said last week.

Speaking at the three-day Annual Investment Meeting (AIM) 2016 in Dubai World Trade Centre, Minister Bathiudeen said there are a number of mechanisms in place to protect investors and Sri Lanka’s constitution guarantees the safety of investment of foreigners in the country.

“Sri Lanka is one of the safest countries in the world for FDI and there are number of mechanisms in place to protect investors. Sri Lanka’s constitution guarantees the safety of investment of foreigners in the country. The permanent peace achieved and the political stability that prevails in the country has created more opportunities for investment in the island and an array of investment opportunities is available in the field of tourism, manufacturing, service sector, IT sector, agriculture etc.,” he stated. 

He said the AIM in Dubai creates a significant platform for global leaders to meet and discuss diversified investment opportunity in different destinations and added that Sri Lanka has given priority for the meeting.

“I am glad to mention that I have been participating in the event for the last five years as it gives more exposure for Sri Lanka to highlight the investment potential that could be offered to foreign investors. In addition, it provides me an opportunity to meet heads of states, government ministers and high ranking government officials and corporate leaders to interact and network with them and to persuade the potential parties to visit Sri Lanka and seeing in believing for various investment opportunities available in the country.”

He said that the UAE is certainly a successful model to be followed. “The UAE has taken numerous initiatives in embracing innovation and knowledge to achieve sustainability. I totally agree that the visions of the UAE leadership for innovation and knowledge to achieve sustainability will definitely go a long way and produce a long lasting outcome for future generations.”

The Minister said Sri Lanka has received numerous inquiries from interested parties from UAE in the tourism sector.

“UAE is the largest investor in Sri Lanka in the GCC. UAE invested in automobile, telecom, manufacturing, hotel industry, tourism etc. in the recent past. My ministry will provide the necessary guidance and assistance to potential investors who are interested to invest in Sri Lanka from UAE,” said Minister Bathiudeen.

“The UAE is the major trading partner for Sri Lanka in the GCC and the two-way trade has reached $ 1.35 billion in 2015. With a number of Sri Lankan companies interested to venture into the UAE market, I hope that 2016 will produce better results with improvement in two-way trade between Sri Lanka and the UAE.”

“We do encourage more investment proposals from the UAE and my ministry will facilitate their interests,” he added.

“Sri Lanka has been one of the strongest supporters of UAE for hosting Expo 2020. We will organise one of the largest pavilions in Expo 2020 to promote Sri Lanka’s trade, investment and tourism taking the advantage of the strategic location of Dubai and to reach out to the world,” he emphasised.

The Minister told the investors that Sri Lanka’s economy has performed with satisfactory level in the recent past and registered nearly 6% growth in 2015.

According to the Minister, despite the economic situation in the global market, Sri Lankan economy has achieved satisfactory growth in exports and tourism. The migrant workers’ remittance has also contributed immensely to Sri Lanka’s overall economic growth. “We expect more FDI flow to Sri Lanka which would generate more employment opportunities and hope our manufacturing sector to perform better than the previous years,” he said.

The Minister said the turbulence in the global market is affecting small economies like Sri Lanka.

“The turbulence in the global market will affect small economies like Sri Lanka. With the declining of oil price, we also face some difficulties in exporting our major export commodity of tea to the Middle Eastern market and Russia. These are short term disturbances but I don’t think it will last long so that the major economies will bounce back enabling countries like Sri Lanka to be benefited from the fast recoveries in the global economy,” he said.