Sri Lanka discusses investment options with Iran

VISIT: Minister Dr. Sarath Amunugama met a visiting delegation of the Mostazafan Foundation of Iran on April 4 at the Ministry of Enterprise Development and Investment Promotion.

The delegation was led by Eng. Mohammed Forouzandeh, President of the Foundation who was assisted by the Iranian Ambassador to Sri Lanka Behnam Behrouz and a number of senior officials of the foundation.

Dr. Amunugama discussed with the delegation areas of co-operation such as a participation in the development of the 450 acres of reclaimed land in the Colombo Port area. Other areas of possible co-operation were in the development of the new International Airport at Hambantota as well as projects in the agriculture sector.

Secretary, Ministry of Enterprise Development and Investment Promotion, Thosapala Hewage, Sri Lanka’s Ambassador to Iran, M.M Zuhair, Chairman/Director General of the BOI Prof. Lakshman R.Watawala and senior officials of the BOI were present.

The BOI had also invited representatives from the management of leading Sri Lankan groups of companies such as John Keells, Hayleys and Brandix, who were able to meet members of Mostazafan Foundation companies and hold discussions with the possibility of representing their interests in Sri Lanka and entering into joint ventures with them.

Chairman/Director General of the BOI Prof. Lakshman R.Watawala, made a presentation on Sri Lanka’s potential as a destination for investment. He highlighted some of the advantages Sri Lanka has to offer potential investors such as the country’s location, her skilled labour force, the free trade agreements Sri Lanka enjoys with India, Pakistan and the EU GSP+ Agreement.

He also described some of the sectors where investment was needed such as infrastructure development.

This included the expansion of the Colombo Port, the modernisation of the Colombo Airport, the construction of the new airport at Weerawila. Other areas promoted included the development of new BOI export Processing Zones, the construction of new high rise buildings, the upgrading of the transportation system and the Mass rapid Transport System for the city of Colombo.

Currently investment from Iran was limited to seven companies worth a total of US$ 175 million and employing 184 staff.

This level of investment did not reflect the extent of trade that exists between the two countries. Sri Lanka is a major importe of Iranian oil and Iran a major consumer of Sri Lankan tea.

The Mostazafan Foundation is a very significant foundation in Iran which engages in charitable work and helps needy sections of the population. It’s assets are worth billions of dollars and the foundation comes directly under the purview of the Supreme Leader of Iran Ayatollah Ali Khamenei.

The Foundation has about 180 companies and entities and employs altogether about 30,000 staff. Its economic activities cover a wide range of sectors including the manufacture of fruit juices and beverages, mining, oil products, ceramics, tiles, equipment, cellulose and rubber.

Some Mostazafan Foundation companies are involved in trading and transportation as well as insurance and brokerage. Others are responsible for power plants, development and housing.

The Mostazafan Foundation therefore is an important part of the economic life of Iran.

The Iranian delegation expressed interest in investing in the country and will be fielding a mission to Sri Lanka soon.