Investment & Trade
From The Report: Sri Lanka 2016
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Sri Lanka is well situated for trade and an attractive target for international investment. Lying on major shipping and air routes, it is close to the markets of Asia, Africa and the Middle East. Moreover, the country has a literate workforce, good infrastructure, a healthy population and relatively low wages. Since the 2009 cessation of a long-running civil war, Sri Lanka has become one of the region’s more stable nations, and following elections in 2015 it has become increasingly open. The new government has indicated it is doing away with the country’s statist past and is embarking on a period of material liberalisation.
This chapter contains a viewpoint from Malik Samarawickrama, Minister of Development Strategies and International Trade; and interviews with Harsha de Silva, Deputy Minister of Foreign Affairs; Upul Jayasuria, Chairman, Board of Investment; Samantha Ranatunga, Chairman, Ceylon Chamber of Commerce; Ugo Astuto, Director and Deputy Managing Director for Asia and the Pacific, European External Action Service; and Razeen Sally, Chairman, Institute of Policy Studies.
Articles from this Chapter
Moving forward: Understanding the trade realities brought by a new administration
Moving forward: Understanding the trade realities brought by a new administrationOBGplus
Sri Lanka is well situated for trade and an attractive target for international investment. Lying on major shipping and air routes, it is close to the markets of Asia, Africa and the Middle East. Moreover, the country has a literate workforce, good infrastructure, healthy population and relatively low wages. Since the 2009 cessation of a long-running civil war, Sri Lanka has become one of the region’s more stable nations, and following elections in 2015, it has become more open and economically…
Comparative advantage: Malik Samarawickrama, Minister of Development Strategies and International Trade, on cementing Sri Lanka’s hub statusOBGplus
For investment, I believe there are developments in the overall landscape that make it timely for a big push on our part to attract foreign direct investment (FDI). Firstly, our government has embarked upon a development strategy that places a high priority on the creation of a FDI-friendly business environment. Secondly, we are currently in the process of deepening our economic relations with India and Pakistan, and negotiating a major free trade agreement (FTA) with China. This would give us preferential…
Comparative advantage: Malik Samarawickrama, Minister of Development Strategies and International Trade, on cementing Sri Lanka’s hub statusOBGplus
For investment, I believe there are developments in the overall landscape that make it timely for a big push on our part to attract foreign direct investment (FDI). Firstly, our government has embarked upon a development strategy that places a high priority on the creation of a FDI-friendly business environment. Secondly, we are currently in the process of deepening our economic relations with India and Pakistan, and negotiating a major free trade agreement (FTA) with China. This would give us preferential…
Opening the door: Opportunities abound as the government seeks a significant rise in foreign direct investmentOBGplus
The election of President Maithripala Sirisena in January 2015 signified an historic shift in Sri Lanka’s trajectory. With the former administration having often been accused of nepotism and political appointments to key roles, the team of the prime minister, Ranil Wickremesinghe, has signalled a move towards liberalisation, transparency and more merit-based leadership. Challenges remain in making the public sector more efficient and effective, with top-level decision-making now split among more…
Opening the door: Opportunities abound as the government seeks a significant rise in foreign direct investmentOBGplus
The election of President Maithripala Sirisena in January 2015 signified an historic shift in Sri Lanka’s trajectory. With the former administration having often been accused of nepotism and political appointments to key roles, the team of the prime minister, Ranil Wickremesinghe, has signalled a move towards liberalisation, transparency and more merit-based leadership. Challenges remain in making the public sector more efficient and effective, with top-level decision-making now split among more…
Stepping up: OBG talks to Harsha de Silva, Deputy Minister of Foreign AffairsOBGplus
Interview:Harsha de Silva How do you see Sri Lanka’s economic diplomacy going forward in the coming years? HARSHA DE SILVA: The prime minister articulated an economic policy plan in November 2015 addressing Sri Lanka’s economic priorities looking over the next few years. Having successfully resolved a number of issues with Western countries with regards to human rights, we feel we are able to participate anew in the international marketplace. Although this marketplace was largely available…
Stepping up: OBG talks to Harsha de Silva, Deputy Minister of Foreign AffairsOBGplus
Interview:Harsha de Silva How do you see Sri Lanka’s economic diplomacy going forward in the coming years? HARSHA DE SILVA: The prime minister articulated an economic policy plan in November 2015 addressing Sri Lanka’s economic priorities looking over the next few years. Having successfully resolved a number of issues with Western countries with regards to human rights, we feel we are able to participate anew in the international marketplace. Although this marketplace was largely available…
Attracting investments: OBG talks to Upul Jayasuriya, Chairman, Board of Investment (BOI)OBGplus
Interview:Upul Jayasuriya What are the key constraints Sri Lanka faces in attracting foreign direct investments (FDI)? UPUL JAYASURIYA: Overall Sri Lanka is in an advantageous position to attract FDI. Doing business here is much easier than in any other country in South Asia. Our labour force is skilled, efficient and friendly. Infrastructural facilities have been improving year after year. Sri Lanka has made a rapid recovery from a 30-year civil war, and can now boast of a secure environment…
Attracting investments: OBG talks to Upul Jayasuriya, Chairman, Board of Investment (BOI)OBGplus
Interview:Upul Jayasuriya What are the key constraints Sri Lanka faces in attracting foreign direct investments (FDI)? UPUL JAYASURIYA: Overall Sri Lanka is in an advantageous position to attract FDI. Doing business here is much easier than in any other country in South Asia. Our labour force is skilled, efficient and friendly. Infrastructural facilities have been improving year after year. Sri Lanka has made a rapid recovery from a 30-year civil war, and can now boast of a secure environment…
Mutually beneficial: The country is working on several trade agreementsOBGplus
With several free trade agreements (FTAs) in place, Sri Lanka is exploring options for new trade deals and seeking to upgrade at least one existing one. It is also working together with international groupings and is seeking to regain preferential status with the EU. In part, this trend is the result of the change in government and the return to more balanced relationships, while it is also simply the consequence of long-term efforts to improve trading relations with others. However, it is unclear…
Mutually beneficial: The country is working on several trade agreementsOBGplus
With several free trade agreements (FTAs) in place, Sri Lanka is exploring options for new trade deals and seeking to upgrade at least one existing one. It is also working together with international groupings and is seeking to regain preferential status with the EU. In part, this trend is the result of the change in government and the return to more balanced relationships, while it is also simply the consequence of long-term efforts to improve trading relations with others. However, it is unclear…
Call for coherence: OBG talks to Samantha Ranatunga, Chairman, Ceylon Chamber of CommerceOBGplus
Interview:Samantha Ranatunga What are the most important issues for the private sector in Sri Lanka in 2016? SAMANTHA RANATUNGA: The Ceylon Chamber of Commerce has a heritage going back over 170 years and includes 8000 indirect and direct members and 550 established institutions. From their perspective, the last year has been very challenging. A fair amount of disconnect was produced in certain areas in 2015. The budget is a case in point. We are still trying to resolve issues related to…
Call for coherence: OBG talks to Samantha Ranatunga, Chairman, Ceylon Chamber of CommerceOBGplus
Interview:Samantha Ranatunga What are the most important issues for the private sector in Sri Lanka in 2016? SAMANTHA RANATUNGA: The Ceylon Chamber of Commerce has a heritage going back over 170 years and includes 8000 indirect and direct members and 550 established institutions. From their perspective, the last year has been very challenging. A fair amount of disconnect was produced in certain areas in 2015. The budget is a case in point. We are still trying to resolve issues related to…
Time for reform: Adding value to goods would help narrow the trade deficitOBGplus
An ideal entrepôt and with productive agricultural lands, Sri Lanka has nonetheless experienced persistent trade deficits that have had a significant impact on the currency and the economy. A number of options have been suggested in recent years. One solution is to retain additional value in-country by encouraging more domestic value-adding activities and processing. The government wants Sri Lanka to be more than a place where goods simply pass through or resources leave. Sri Lanka already does…
Time for reform: Adding value to goods would help narrow the trade deficitOBGplus
An ideal entrepôt and with productive agricultural lands, Sri Lanka has nonetheless experienced persistent trade deficits that have had a significant impact on the currency and the economy. A number of options have been suggested in recent years. One solution is to retain additional value in-country by encouraging more domestic value-adding activities and processing. The government wants Sri Lanka to be more than a place where goods simply pass through or resources leave. Sri Lanka already does…
Building bridges: OBG talks to Ugo Astuto, Director and Deputy Managing Director for Asia and the Pacific, European External Action ServiceOBGplus
Interview:Ugo Astuto How would you rate Sri Lanka’s progress on human rights following its decades-long civil war? UGO ASTUTO: The progress has been remarkable. Sri Lanka co-sponsored a resolution at the UN Human Rights Council in September 2015. This is only the starting point for what needs to be a sustained path of reconciliation. There must be concerted action to address the root causes of the conflict, including assuring minority groups that they can exercise some control over their…
Building bridges: OBG talks to Ugo Astuto, Director and Deputy Managing Director for Asia and the Pacific, European External Action ServiceOBGplus
Interview:Ugo Astuto How would you rate Sri Lanka’s progress on human rights following its decades-long civil war? UGO ASTUTO: The progress has been remarkable. Sri Lanka co-sponsored a resolution at the UN Human Rights Council in September 2015. This is only the starting point for what needs to be a sustained path of reconciliation. There must be concerted action to address the root causes of the conflict, including assuring minority groups that they can exercise some control over their…
Opening the door to trade: OBG talks to Razeen Sally, Chairman, Institute of Policy StudiesOBGplus
Interview: Razeen Sally On which points do you see a need for Sri Lanka to embrace a more liberal economic approach? RAZEEN SALLY: On the subject of trade, there are three issues to address. The first is the thicket of non-tariff barriers that, in my opinion, have increased protections over imports, and to some extent exports, by a factor of two over the last decade. This has caused huge distortions in the economy and has essentially de-globalised the country. If you look at the whole trade picture,…
Opening the door to trade: OBG talks to Razeen Sally, Chairman, Institute of Policy StudiesOBGplus
Interview: Razeen Sally On which points do you see a need for Sri Lanka to embrace a more liberal economic approach? RAZEEN SALLY: On the subject of trade, there are three issues to address. The first is the thicket of non-tariff barriers that, in my opinion, have increased protections over imports, and to some extent exports, by a factor of two over the last decade. This has caused huge distortions in the economy and has essentially de-globalised the country. If you look at the whole trade picture,…
