Lanka can become gateway to Indian market, investors - HSBC official

Anjana Samarasinghe

CONFERENCE: Sri Lanka has the potential to be the gateway to the Indian market for foreign investors, said General Manager and Global Co-Head Commercial Banking for the HSBC Group Margaret Leung at the HSBC Corporate Leaders' Conference yesterday.

The FTA between both countries has resulted in increased trade among the two countries. Sri Lanka also provides attractive incentives for investors. This will be an ideal opportunity for investors to enter the Indian market through Sri Lanka,' she said.

Despite the tsunami Sri Lanka was able to gain 6.2% economic growth this year. In Sri Lanka the inflation rate has declined and there was a huge boom in the stock market activities. For market expansion or diversifying business we need to focus on large markets. Local companies need to concentrate on markets such as India and Pakistan.

Sri Lanka needs to understand the business culture and customer needs of these countries, Leung said. Leung said there is a huge potential for garments, IT and tourism sectors in Sri Lanka.

India is one country that attract the highest number of investors. India also has continued commitments for reforms which could create an investor friendly environment.

Director/ Chief Executive of Dialog Telekom Dr Hans Wijayasuriya said business leaders need to transform to certainty from uncertainty.

"Corporates should have clear understanding about their business and it will pave the way for them to identify their competitors," he said.