Thailand’s largest conglomerate seeks to invest here

Shirajiv SIRIMANE in Thailand

The Charoen Pokphand Group, the largest business conglomerate in Thailand is looking at investment opportunities in Sri Lanka.

Senior officials of the Group who attended a Sri Lanka Thailand Business Forum here last Thursday said they are keen to look at opportunities in Sri Lanka.

Aside from agribusiness, the family-owned holding company’s interests range from retailing, as the franchisee of Thailand’s ubiquitous 7-Eleven stores (There are 4,300 7-Eleven stores in Thailand,) to telecommunications, as the owner of True Corporation, a mobile telephone, Internet service provider and cable television company.

“The company will first look at investments in the agricultural sector.” The company officials were also briefed about the security situation of the country and the healthy economic climate for investors.

“We have met Foreign Minister Rohitha Bogollagama at this forum and he has provided us with a first hand insight to the country which is very interesting,” the official said after the forum.

Many Thai investors were keen to explore investment opportunities in Sri Lanka. The sectors they were keen on were gems and jewellery, rubber based products including automobile parts, tourism, agriculture and food processing, electrical and electronic products where Thailand has expertise.

The investors were keen to find Lankan partners.

Although Thailand is not a major investor in Sri Lanka presently, BoI agreements have been signed for 17 projects with nine projects already taking off in gem and jewellery, tourism, maritime services electronic sector.

A bilateral investment protection agreement has been signed in 1996 between the two countries to provide strong protection to Thai investments and a double Tax Relief Agreement is in place since 1998.

Thailand has population of 65 million, a GDP in the excess of US$ 206.1 billion (Per capita $ 3,176) and exports amounting to US$ 143.1 billion last year.

Thailand has exported items to the tune of US$ 285.87 million last year. Exports to Thailand from Sri Lanka last year were US$ 38.12 million.

Main exports from Thailand to Sri Lanka are woven fabrics (US$ 38 million) dried fish ($ 22m) cement ($ 17m) polymers ($ 17m) and sugar ($ 16m).