Economy

Sri Lanka targets US $ 2bn FDIs from CHOGM

24 Oct 2013 - {{hitsCtrl.values.hits}}

Sri Lanka’s investment promotion bureau, the Board of Investment (BoI), said it would expect at least US $ 2.0 billion worth of foreign direct investments (FDIs) in 2014 from the Commonwealth Heads of Gover nment Meeting (CHOGM) alone.

BoI Director Promotion Dilip S. Samarasinghe said they were expecting at least 1,000 delegates from 60 countries to the Commonwealth Business Forum (CBF), the biggest business forum ever held in Sri Lanka along with the CHOGM.

The CBF will be held from November 12 to 14 and would be an ideal opportunity to attract the most important FDIs to the investment-hungry nation.

“We have so far received 337 confirmed foreign participants from both Commonwealth and non-Commonwealth countries out of a total 500 openings. There will be another 500 local businessmen,” he said at a media briefing held to announce the economic benefits of the CHOGM.

To this effect, the BoI has identified 56 projects, of which, projects relating to investment substitution rank the highest in the priority list, according to Investment Promotion Ministry Secretary M.M.C. Ferdinando.

“Especially we look at promoting import substitution sector-related projects. For instance, we would like to encourage the foreign investors to start manufacturing here not only to cater to the domestic demand but also to the export market,” he said.

This is besides the investment opportunities in agriculture, manufacturing, tourism education, IT/BPO, renewable energy and infrastructure.

Ferdinando further demonstrated the significance of upping the FDI flows to at least to 4 percent of the gross domestic product (GDP) (or US $ 3.0 billion) from the existing 2 percent, in order to fill the vast investment vacuum in the country, as the country does not generate adequate savings to support an 8.0 percent growth.

Investment Promotion Minister Lakshman Yapa Abeywardena said Sri Lanka managed to attract a paltry US $ 2.36 billion during the period 1978-2005 but it leaped to as much as US $ 6.8 billion during 2006-2012.

CA Sri Lanka President Sujeewa Rajapakse illustrated how Australia leveraged the CHOGM in 2011 to attract as much as US $ 10 billion worth of FDIs in the aftermath. He further justified the massive government spending on city beautification in a bid to give a fresh facelift to Colombo, which is currently being carried out hurriedly, as these are well needed capital expenditure that will have long-term benefits.

Further, the BoI will set up a miniBoI Centre at Cinnamon Grand Hotel to provide investment facilitation to these visiting foreign investors during the three days. The centre will have staff conversant with multiple languages to assist investors from different nationalities.

The centre will also facilitate one-toone business meetings between project holders and the potential investors. Site visits to key projects will also be arranged on request by the investors.

Deputy Investment Promotion Minister Faizer Mustafa told the CHOGM was an ideal opportunity for Sri Lanka to change the perception, showcase what she has to offer to the investors and also to counter the unsubstantiated allegation levelled against the country by various parties with vested interests. (DK)

Economy

Sri Lanka targets US $ 2bn FDIs from CHOGM

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