13 November 2024 12:20 am Views - 601
| Arjuna Herath Pic by Nimalasiri Edirisinha |
By Nishel Fernando
With an aim to boost FDI flows into the country while fostering inter-regional trade among SAARC nations, Sri Lanka’s Board of Investment (BOI) is exploring the creation of country-specific industrial parks tailored to the needs of SAARC nations.
The proposed country-specific industrial parks are aimed at addressing concerns around economic and political risks associated with single-market operations by enabling businesses of SAARC nations to establish offshore bases within Sri Lanka. It is expected to foster bilateral trade, reduce investment risk, and create new avenues for economic cooperation.
Board of Investment (BOI) Chairman Arjuna Herath outlined that this concept of dedicated industrial parks would allow companies to diversify their operations while mitigating the risks they face in their home jurisdictions, and sustain operations even during turbulent periods.
“We are looking at conceptualising industrial parks which are dedicated to countries. Why not we have an India-Sri Lanka industrial park in Sri Lanka? Why not we have Bangladesh-Sri Lanka Industrial Park in Sri Lanka?
“The idea is in terms of mitigating risks that we run around countries, you have the ability to operate industries in off-shore locations which can mitigate risks and keep industries to sustain. We are working on this and see whether we have the ability to execute this,” he elaborated.
Herath made these remarks delivering the keynote address at SAFA Best Presented Annual Report 2023 orgnaised by the South Asian Federation of Accountants (SAFA) In Colombo on Monday.
Various events in the region have impacted trade and business stability, with crises in Bangladesh and Pakistan being the most recent examples.
Herath highlighted that inter-regional trade remains at negligible levels of around 5 percent of overall trade in the region, in contrast to 32 percent inter-regional trade among ASEAN members. There “(We) can create enormous economic value by increasing intra-regional investments,” he added.
In addition to risk mitigation, the proposed country-specific industrial parks could also offer numerous other benefits, including the potential for cross-border technology transfer, job creation, and skill development within Sri Lanka.
He expressed confidence that Sri Lanka could play a pivotal role by positioning itself as a logistics hub towards trade integration in the region.
Moreover, Herath emphasised that Colombo Port City stands to become catalyst in attracting foreign investments to the region.
“The Port City of Sri Lanka which conceptualises in terms of an off-shore city will get off the momentum with the ability to attract investments to the region,” he said.
The government is currently working on the required labour policy to attract foreign talent to the Off-Shore City.