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The emerging political climate would be favourable to large-scale investments in Sri Lanka, Minister of Enterprise Development, Industrial Policy and Investment Promotion and Constitutional Affairs Prof G. L. Peiris told a high powered Investment Forum in London prior to the September 16 Thailand peace talks.

Prof. Peiris expressed confidence in the revived investment climate now prevailing in Sri Lanka, following the ongoing peace initiatives.

This was the most opportune moment to present to the international community the investment opportunities available in Sri Lanka, he said.

He expressed the hope that more joint ventures between UK and Sri Lanka would be established in this era of peace, for which a firm foundation had been laid by the Government.

In an individual meeting with the world-renowned chain of stores, Marks & Spencer, Prof. Peiris welcomed their proposal to making Sri Lanka as a regional merchandising hub.

The participants appreciated the favourable investor climate created by the positive momentum of the ongoing peace process of and expressed willingness to invest substantially in Sri Lanka. They commended the Government on its peace initiatives and pledged their support through enhanced investment. In this context, the participants undertook to visit Sri Lanka in the coming months. Minister Peiris who visited the United Kingdom briefly, on an investment promotion exercise and met representatives from nearly 50 companies and Government agencies. This visit was prompted by a surge of investor interest in Sri Lanka, evidenced by the number of some of the largest companies in the United Kingdom.

Minister Peiris briefing the investment forum, said that the point of departure and fundamental factor for attracting investments to Sri Lanka was the ongoing peace process.

The ethnic problem which had continued over decades, was the obstacle, which prevented the fullest benefit being derived, from the advantageous conditions prevalent in the country, he said.

Elaborating on the peace initiatives, Minister Peiris explained that a convergence of many factors had contributed to this backdrop and that there had been no such comparable situation in the past.

Prof. Peiris attributed the global environment, the election of the new government, involvement of the Norwegian government as facilitator, the confidence and trust between the two parties, and the sense of war fatigue as contributory reasons for this backdrop.

Minister Peiris said that the Government had adopted a pragmatic approach to resolve the ethnic problem, based on a step-by-step strategy. He identified the attributes for investor-conducive conditions in Sri Lanka as the strategic geographical location of Sri Lanka, the Free Trade Agreement with India, the establishment of the free market economy, a disciplined, educated and motivated labour force, developed administrative, legal and banking systems, robust democracy and the emphasis on social equity.

Minister Peiris assured them that the BOI would extend its fullest cooperation in facilitating these visits. Clarifications sought by participants on a range of issues were addressed by him and BOI Chairman Arjuna Mahendran, who explained in detail the macro-economic conditions prevailing in the country. Commenting on the outcome of his discussions with company representatives, Minister Peiris said that he was encouraged by the enthusiastic response of the potential investors, especially the confidence placed in the favourable investor conditions in Sri Lanka.

The companies represented at the meeting included Accenture, Arpeggio Ltd, Dynegy Europe, TeraNet Ltd, Syntellect Ltd, Hotline Call Centre Group Ltd in IT & Call Centre Operations; Associated British Foods plc, Jagg Clothing from the Manufacturing sector; Hextall Erskine, Paisely Productions from the Tourism & Leisure Industry; First City Agencies, Kafina Ltd from Finance & Banking; International Business Initiatives, London & International Mercantile Ltd in Infrastructure development; and A-Z Agencies in Business consultancy. UNIDO, the Export Credit Guarantee Department on the UK and Enterprise Ireland, which are government and inter-governmental agencies, also participated in the forum.

The investment forum was organised by the Sri Lanka High Commission in London. (RL)

Clarification

The Sampath Bank in a clarification sent to the 'Daily News' referring to the article published in the CDN newspaper on September 6, in the Business and Finance page says that the information contained in the said article relating to Sampath Bank Limited is wrongful and misleading, since the statement that the S C Capital is a joint venture between Sampath Bank and the Chinkara Group of Singapore is incorrect.

The bank has not entered into any joint venture agreement with S C Capital.

Furthermore Sampath Bank has not invested and also will not invest in the equity of S C Capital.

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