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Friday, 28 March 2014 01:48 - - {{hitsCtrl.values.hits}}
As its private sector investments in Sri Lanka topped $ 1.5 billion, the country’s biggest FDI partner called for stronger B2B and investment cooperation on 26 March in Colombo.
“Sri Lanka has shown strong economic progress. We like to see closer cooperation at business to business and investment levels. We want a strong Sri Lankan trade delegation to Malaysia with across the board representation of all the important investment sectors,” said Malaysia’s Selangor-based Barrister-At-Law Kulasegaran Sabaratnam (President, Federation of Malaysian Sri Lankan Organisation).
FOMSO President Sabaratnam, who is on a six-day visit to Colombo with a 28-member strong Malaysian business team, was making a courtesy call on Minister of Industry and Commerce Rishad Bathiudeen at the EDB on 26 March. The 28-member FOMSO business team led by President Sabaratnam represented five Malaysian firms.
Despite having only 22 investment projects in Sri Lanka (under both Sections of BOI –S.16 & S.17), Malaysia is the topmost FDI investor country in Sri Lanka with $ 1.5 billion cumulative investments to date, surpassing all other global FDI partners.
Top two Malaysian investors in Sri Lanka are Axiata Group Berhad (through the telecom giant Dialog Axiata in Sri Lanka) and the Merbok Group (through Merbok MDF Lanka). Dialog Axiata’s investment in Sri Lanka alone has surpassed $ 1 billion mark.
According to the Department of Commerce of Sri Lanka, in 2013, bilateral trade between both countries stood at $ 577.66 million of which exports from Sri Lanka were $ 44.92 million, while imports levelled at $ 532.74 million. Natural rubber is the main export item to Malaysia which contributes 31% from the total exports followed by apparels (30%), and tea (9%).
Other major export items to Malaysia are treated/used pneumatic tyres, and molluscs. Top imports from Malaysia are petroleum oils, cement, palm oil, miscellaneous chemical products, wood, charcoal and plastics, among others.
“I represent two organisations with specific interest on Sri Lanka – the Federation of Malaysian Sri Lankan Organisations or FOMSO which is interacting with Sri Lanka from 2009 and of which I am the President. And the Malaysia Sri Lanka Business Chamber (MSLBC) of which I am the Vice-President. MSLBC’s interest is bilateral investments and B2B. About 100 Malaysian industries of all scales, including Axiata Group Berhad, Scomi Group Berhad, Food Industries of Malaysia, Public Bank Berhad, are members of MSLBC,” said FOMSO President Sabaratnam, and added: “Sri Lanka has shown strong economic progress. We like to see closer cooperation at business to business and investment levels. We want a strong Sri Lankan trade delegation to Malaysia with across the board representation of, all the important investment sectors. Our firms have an interest on your tourism, infrastructure, energy, high tech, and food. Our suggestion and invitation is for a comprehensive trade delegation from Sri Lanka which will participate in a Lankan trade seminar and exhibition in Malaysia. We are looking forward for a strong Lankan delegation with such agencies as the BOI and your line ministries. A few months later, we would be scheduling the Malaysian delegation to Sri Lanka with cross-sectoral participation.”
“The Good people of Malaysia have extended ready and strong support to our resettlement efforts with more than $ 425,000 immediate funding in 2009 for which I thank them on behalf of President Mahinda Rajapaksa,” said Minister Bathiudeen, responding to FOMSO President Sabaratnam. “I, together with my Ministry and also our investment agency the BOI are ready to extend our fullest support to Malaysian investors looking to set up here. Already, some Malaysian investments in Sri Lanka are playing an important role in our day to day lives. I have no doubts that FOMSO and MSLBC can play a greater role in our bilateral cooperation efforts.”
Both Minister Bathiudeen and FOMSO President Sabaratnam also discussed of various KOMSO humanitarian and business enhancement efforts towards Sri Lanka.
