Foreign Direct Investments will gain brains

Board of Investment 

Colombo Port City

At the World Cities Summit 2022, CNA Julie Yoo interview with Port City Colombo Deputy Managing Director Thulci Aluwihare

All set for region’s first ‘Downtown Duty-Free’ shopping mall at Colombo Port City 

Sri Lankans battled with each other for 30 years costing an estimated $ 200 billion (Ref. S. Menon, former foreign secretary of India). When that ended they tried attracting investors and the Colombo Port City (CPC), the FDI worth over $ 1 billion, was launched as part of China’s Belt and Road Initiative (BRI). 

FDIs from the Shangri-La chain are also notable. Both are tools to prevent conflicts through employment generation. Indian mega market is an opportunity SL should approach for conflict prevention economic ventures. Its trade surplus, cultural bond and the ability to prevent domestic conflicts in SL will create synergy through win-win cooperation between India, SL and China. Indian trade involvements in SL will be an extension of the “Chennai connect” in the BRI trade circuit which has a partner network of approximately 140 countries and multinational organisations spanning the globe with an average of $ 10 trillion worth trading between the partners (Ref. BRI sources).  

A decade after the ending of violent conflict, the growth rate of SL was affected by the pandemic. However, the pandemic was managed by most countries. The BRI was a lifeline for many countries even in Europe to withstand the pandemic impact but SL basically (according to many analysts) came to a standstill with economic mismanagement being a key factor. Regretting will not lead anywhere and one of the best available options for SL is to accelerate the policy formulation and operations mechanisms to get the CPC up and running. It will not only energise the halted economy but will attract new knowledge and be the brain gainer for SL especially from the Indian market.  

Expressing an open invitation to the world, during World Cities Summit 2022, at an interview with Singapore CNA’s Julie Yoo, Deputy Managing Director at Colombo Port City, Thulci Aluwihare said, “Our vision is to create a world-class city for South Asia, and India is one of our primary markets, as the largest economy in South Asia and 4th largest in the world.”

Lessons from the world

SL has no time to waste. More it play frog in the well sitting on the 2,500 year glory story, it may perish in the past (with no forward decisions made). All activity will have to be free trade focused including the foreign policy. Sri Lankans may study how; Japan developed Kobe city, Malaysia developed Putrajaya city, Thailand expanded Bangkok, Australia developed the King’s beach (named after the King family), Singapore created the Marina bay, China is utilising Hong Kong, Macau and Hainan to attract foreign wealth and last but not least how the Middle East is thriving with good brains trained in SL.   

The CPC should be the place providing the highest quality commercial, entertainment, medical, educational and lifestyle opportunities. Promoting Indian investment into that; will be a practical move, attract other investors and it will place SL firmly on the BRI map which will be the global trade dashboard. Duty-free trading should be a key feature and the Cabinet approvals for such moves should not be delayed if the policymakers wish to push the country forward. It will make Colombo a regional shopping destination similar to Dubai, Kuala Lumpur and Singapore, etc.

Technical processes to facilitate remote check in and baggage hauling, etc. should be implemented ASAP. Continuous public awareness and training of customs officials, etc. to facilitate these are very necessary to avoid obstructions by those who don’t wish to see SL grow. All possible support should be given to expedite FDIs. Tasks such as completing the Environmental, Social, and Governance benchmarking study of the CPC to promote it as a climate friendly transnational city will also be the first steps of the long march. 

Restore investor confidence

Some Sri Lankans will always live with a closed mindset. Either they should be left behind or that thinking has to be changed fast so that opportunistic conflict provocative forces shall not be able to reverse development. SL has so far lost many opportunities due to investor NO confidence. Investment from reputed international higher educational institutes moving to more stable countries with disciplined workforces is one instance. Workplace riots have been a key factor to turn away the investors (Ref. World Bank sources). This negative attitude can only be changed with proper civic education and information sharing. Then only multinational companies will be attracted. It will ensure employment for thousands of youth and indirect beneficiaries will cover the larger majority of the 22 million inhabitants.  Most above success stories learned from SL’s Greater Colombo Economic Commission. 

Sri Lankans may analyse which elements make SL go back and if such elements are active in the countries which attract FDIs. If they don’t, it questions the literacy rate SL is boasting and the quality of the free education provided with taxpayers’ money.   

 

(The writer is an Academic and a Broadcaster. Views expressed are personal and may not necessarily be the views of his affiliations.)