Sri Lanka a paradise for investors

Be positive - be aggressive:

Kirti Hewamanna

The entire world is facing an unprecedented economic devastation. The International Monetary Fund says the world economic recovery will take place only in the year 2010 and not sooner. However, now that the IMF got a boost of one trillion dollars at the G-20 summit, it is in a better position to advance funds to countries for development projects.

World Bank opinion

The World Bank opinion is very positive about Sri Lanka’s economic development. The opportunities are abundant in agricultural, fisheries, industrial and service sectors. After the restoration of peace in the Eastern Province the paddy cultivation and market gardening have made a good progress.

Fisheries and dairy farming activities have already begun in these areas. Housing and tourism are the other opportunities available for investors to get involved in this province.

Economic setbacks, recessions, inflation are nothing new to Sri Lanka. The country has suffered over a period of 30 years losing approximately US$ 30 billion due to terrorism. A group of murderous thugs inflicted unimaginable pain and suffering on innocent civilians and how they are gasping for their last breath. They will be eliminated and peace will be restored in the country in a few days.

President Mahinda Rajapaksa made this happen. His courageous leadership and strategic planning, executed by the Defence Secretary and the commanders of the Armed Forces achieved this great military victory. It is imperative to have peace and security in a country to achieve its economic goals. The nation salutes the Security Forces.

The impact of the world economic crisis is more severe in the developed countries. Uncontrollable job losses, major companies facing bankruptcy and the melting down of capital markets are the major problems that the Governments of these countries have to grapple with.

Developed countries response

Almost all the developed countries responded to the crisis by offering numerous stimulus packages. Even some developing countries followed this example as they see these stimulus packages are the only solution for the fast recovery from the recession.

There are positive signs in the United States economy that the recovery will happen even sooner than expected. Economic recovery in the developed countries will be a major boost for Sri Lanka economy. Our exports will be increased and more tourists will visit the country.

Recovery of economies

The recovery of economies through the stimulus packages will increase the buying power of people, and will raise the demand for goods and services. To meet this increased demands, industries will raise production. It will put the economy back to a long-term growth path.

Now is the time for local and foreign investors to get engaged in projects. There are many opportunities. With the recovery of the world economy the garment industry and tourism will definitely get a big boost.

The high quality of our garments can compete in any part of the world. The Government must offer concessions to this industry for it to grow as this industry provides lot of employment to people.

The world is full of educated derelicts. They express opinions free of charge. They always like to dwell in the doom and gloom. As the old Chinese proverb goes, “Worrying won’t cook a pot of rice.” Former President Bill Clinton’s advice to President Obama is “be positive and aggressive.” President Rajapaksa believes that no industry will fail if it starts with national interest. There are many opportunities available that can be developed into successful business ventures in the national interest.

As the investors are provided with preferential tax rates, constitutional guarantees on investment agreements, exceptions from exchange control and 100 percent repartition of profits, truly the country will be a paradise for investors.

Therefore, our economic development will be sooner than that of our neighbours like Thailand, Singapore and Malaysia. No other African or Asian country will offer this kind of benefits and opportunities to investors.

The Sri Lankan missions overseas, the International Chamber of Commerce and the Ceylon Chamber of Commerce must undertake the task of promoting investment opportunities in the country.

The Government can appoint Sri Lankans living overseas with business experience to carry the message to promote investments.

Liberated coastal areas

The liberated coastal areas with absolutely beautiful beaches and lagoons will provide many leisure activities for the tourists. Lagoons and the sea will be excellent for fishing cruises. Tourist villages can be built to provide housing for tourists who like to stay for long periods in the country. Water views are always popular.

Agricultural development has already begun in the East. It will happen very soon in the North when peace is restored. Fishing industry is another investment opportunity which will bring revenue for local fishermen and investors.

In these areas, tourism, fishing industry and agriculture projects have to be carefully planned and implemented to get the maximum benefits. Beach condos for foreigners will be a great attraction which will provide employment to the local residents.

Sri Lankan companies should engage in joint ventures with foreign investors to give them more confidence. Private sector can play a big role in the economic recovery process. Corruption in the private sector and the Government has to be eliminated.

The strategic location near major Indian Ocean sea lanes can make the country a transshipment and logistic center. The natural beauty of the country, beaches, religious sites, hill country and forests are major tourist draws.

Untapped natural resources

The East coast is virtually untapped. The natural resources and agricultural wealth, oil, minerals, forests, tea, spices, gems and jewellery are the opportunities that foreign investors can explore. The Mahinda Chinthanaya related roads and infrastructure developments, budget air line terminals and international port facilities at Hambantota will give a boost to the new and old investment projects. Very few countries in Asia and Africa can match these opportunities.

It is an established fact that the real estate and construction industry make an important contribution to the economy of a country and welfare of its people. Housing is key a factor in measuring the standard of a living of a society and is an indicator of an economic growth of a country.

The Minister of Construction has accepted a challenge to build 100,000 houses. He will succeed as he has already started negotiations with foreign countries to get assistance in this regard. Housing for low income groups, senior citizens homes, tourist villages and resorts should be included in this construction program.

The members of the Armed Forces can also participate in many development projects such as fisheries, tourism, maintaining resorts, agricultural projects etc.

Funding for projects

Sri Lankans who are planning to return can get involved in funding these projects. They can contribute to well-planned investment projects. Construction industry will always signal the economic recovery of a country.

Housing and real estate industry has to be properly monitored. Condominium concept has to be further developed as in many other countries. Today some condo buyers are disenchanted as they feel this segment of the housing industry is not properly planned. This relatively new concept has to be promoted well for the buyer to feel protected.

(The writer is a Graduate of the University of Ceylon-Peradeniya. An Investment Promoter and Consultant and an Award Winning Realtor in Canada with wide experience in all aspects of real estate. Held membership in Canadian Real Estate Association and member of the Realtor Political Action Committee in Canada)