Conducive investment atmosphere in Sri Lanka - Bogollagama

by Indeewara Thilakeratne

Enterprise development through local and foreign investment is the hallmark of the new Government's investment policy , Minister of Enterprise Development and Investment Promotion Rohitha Bogollagama said in an interview with Daily News.

The Minister dispelled wild canards by the opposition and assured that the country's investment atmosphere was ready to take off for a rapid growth rate induced by an improved chain of production.

Q: In the backdrop of a 'Mahinda Chinthanaya', the policy statement by President Mahinda Rajapakse that emphasised the creation of a national economy, speculation is rife as to what type of investment policy the new Government would introduce and would it favour local investment against foreign investment. Your comments.

A: There is no difference in the investment policy as far as the Government under President Mahinda Rajapakse is concerned.We are trying to look at the generation of foreign investment and local investment in order to accelerate economic growth.

So the investment policy is encouragement of enterprise development through both foreign and local investment and we are also focusing on a National Economic Agenda where we accelerate enterprise development in this country with local partnership, with local entrepreneurs who will be able to bring more value to their product development.

Under the investment policy of the Mahinda Rajapakse administration what are the major sectors that have been identified to be developed within the next 6 years?

A: The traditional industrial sector, value addition in terms of all our agricultural crops and we are also looking at the IT sector. The software development, the back office operations, the power sector. And we are also looking at labour infrastructure related development. From port to highways and from highways to other areas of urban development: high rise apartments, office blocks, office complexes and industrial zones.

All these are within the framework of six years of development in Sri Lanka.

Q: What are the new features that would be brought in, under the Mahinda Chinthanaya?

A: So Mahinda Chinthanaya has focused to get the value addition process out of Sri Lanka. Every product must get value added before export.For that we are looking at a value addition process.

Again we are looking at new markets. There are major markets developing in China, India, Pakistan and in East European countries and European countries and VSP 7000 plus. These are the areas we are looking at for development in the future.

Q: How do you plan to transform the country's industrial sector into a viable economic force that contributes to economic growth and creates employment opportunities?

A: You must satisfy the investors and look after investors and encourage them. Then the investors become confident to invest in the country. Then the investors will expand their investment. Then we will get more jobs, more foreign exchange, more economic contribution to the local economy, more share in terms of the GDP. Then we will have an investor friendly environment in Sri Lanka for future growth and for more rapid growth.

Q: What are the potential markets for our products?

A: We have a very good market in the world for our industrial products. We have got a GSP Plus Scheme and identified several light engineering products, electronic products, a lot of rubber related products, software development and the apparel sector. So the market is there, but we have to develop the supply chain. Supply chain development is target more people to produce and to produce quality products.

Q: What are the measures that you would take to attract foreign investment to Sri Lanka?

A: One to one meetings with major investors in the world and convincing them that Sri Lanka is the right place to invest and developing Sri Lanka as a location for investment. Taking advantage of free trade agreements between Sri Lankan and India, Sri Lanka and Pakistan and GSP 7000 plus and the traditional markets available in Europe and markets available in US. We can look for very accelerated, very high growth development for Sri Lankan made products.

Q: So what about the future market for the apparel sector?

A: That market is expanding and the market is good and the market has been promoted. Labour charge is not the only factor that determines markets. You must increase the productivity and match the productivity.

Q: Can you comment on the Indian tour?

A: President Rajapakse lead a very important tour and took a major step forward in visiting India on the invitation of the Indian Government. We had several areas of discussion; one is the political agenda and second is the economic agenda. Both areas are of great mutual benefit to both countries.

We are expanding in terms of our economic agenda to expand to cover both investment and trade. And on the investment side, we are looking at Indian conglomerates to look at Sri Lanka as a major destination for their investment and to benefit out of the good economic climate and investor environment available in Sri Lanka.