Upward trend in Malaysia-Lanka trade

Shirajiv Sirimane

TRADE: Trade between Sri Lanka and Malaysia, which saw a drastic drop in 2004 has once again picked up last year and has recorded a 46 percent increase.

High Commissioner to Malaysia in Sri Lanka, Nazirah Hussain, in an interview with the Daily News at the Sri Lanka Malaysia Business Council awards ceremony in Colombo last week said that this is mainly because there has been more investor confident towards Sri Lanka.

Sri Lanka exports to Malaysia in 2004 dropped to Rs. 866 million from Rs. 1095 million in 2003. "However this bounced back to Rs. 1267 million in 2005," she said.

Simultaneously imports too increased marginally from Rs. 31,758 million in 2004 to Rs. 33,429 million the following year. "This is 5 percent increase."

The balance of trade between the two countries has always being in favour of Sri Lanka and this trend is expected continue.

The longstanding ties between Sri Lanka and Malaysia has been strengthened the trade relationships too have increased. Malaysia has singed 28 agreements. Five projects are awaiting agreements, four are in the construction period and 12 are already in operation.

The total investments account to Rs. 28,493.8 million which is made up of Rs. 24,417.6 million in Foreign Equity and local equity at Rs. 4,076.2 million.

She said that more delegations are expected in Sri Lanka soon and they are especially keen on the highway sector and in infrastructure building. "We are also looking at an open sky policy agreement with Sri Lanka which would increase air travel and lead to increased tourism," she said.

A 30 day stay Visa would be granted to Sri Lankans on arrival at five locations in Malaysia which include the Kuala Lumpur and the Singapore boarder for a fee of 100 Ringitt (Rs. 3000) "The authorities will only need a conformed return air ticket to grant a visa," she said.

She said that Telecom Malaysia invested in Sri Lanka at very bad period in Sri Lanka and today they are reaping the benefits. "Likewise there are other Malaysian investors who will be investing in Sri Lanka as businessmen always like to take risks," she said.

Tourist arrivals from Malaysia increased from 10,132 million in 2004 to 11,578 million last year, which is a 14.3 percent increase.

"With Malaysia granting 'Visa on arrival' Sri Lankan tourists are expected to increase. The Sri Lanka Malaysia Business council also held their annual General meeting, which was followed by the awards ceremony.