Czech trade delegation visits Sri Lanka
Czech Ambassador praises "Sri Lanka's investor
friendly business environment":
A high-powered delegation from the Czech Republic visiting Sri Lanka
called on Minister of Enterprise Development and Investment Promotion
Anura Priyadarshana Yapa. At the discussion that followed, the
delegation expressed its interest in expanding the bilateral economic
ties between Sri Lanka and the Czech Republic in the fields of trade and
investment.
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Czech Ambassador Dr. Hynek Kmonicek
and Minister Anura Priyadarshana Yapa addressing the media. |
Ambassador of the Czech Republic to Sri Lanka, resident in India Dr.
Hynek Kmonicek headed the delegation, which consisted of 12 private
sector representatives. Also representing Czech interests was Consul of
the Czech Republic in Sri Lanka Jayantha Fernando. The BOI was
represented by Executive Director (Promotion and Mega Projects) Shivan
de Silva, Director (Promotion) Nilupul de Silva, and Director (Media and
Publicity) Dilip S. Samarasinghe.
A major reason for this meeting was the interest expressed by the
Czech delegation to play an active role in the reconstruction of Sri
Lanka since the end of the conflict. At the same time was the
realization on the part of both sides that the volume of bilateral trade
between the two countries that stands at US$ 50 million should be
further expanded. Also there is only one Czech company in Sri Lanka,
engaged in IT and web designing operations.
The Czech Republic has an export-oriented economy and exports about
US$ 130 billion worth of goods and services for a population of 10
million. The ambassador said this figure is just slightly less than
India's total exports, for a population of a billion.
As her exports are essentially infrastructure-related goods and
services, future investment to Sri Lanka would be essentially drawn from
those sectors. Hence there is serious interest on the part of some
members of the Czech delegation to participate in important Sri Lankan
infrastructure projects such as the railways, the International Airport
at Mattala, domestic airports, the Trincomalee Special Economic Zone and
tourism projects in Kalpitiya.
Though a relatively small country, the Czech Republic is politically
influential in Brussels as she just ended her term of the Presidency of
the European Union, which is the world's largest trading block and Sri
Lanka's main export market.
A major selling point for Sri Lanka, according to the Czech
Ambassador is the island's compact size and "a predictable, business
friendly investment environment". This makes Sri Lanka a potentially
attractive destination to Czech and European Union investors who want to
operate in a hassle free environment.
He said that unlike many other members of the European Union, the
Czech Republic's economy remained vibrant and relatively unaffected by
the current global economic crisis. This was because Czech banks
remained strong and were not affected by the downturn. These banks would
play an important role in funding Czech investment projects in Sri Lanka
once they are established.
A unique project, which the delegation was keen to promote in Sri
Lanka, was a mobile airport system. This versatile system that consists
of five container type units can be installed at any airstrip to make it
a functioning airport. It had been used by India when it hosted the last
Commonwealth Games. Since this system is mobile, it can be moved around
whenever there is a requirement.
Minister Yapa briefed the Czech delegation on the pressing need to
upgrade the railways system, particularly to use transport as an
instrument to bring the country together. "We are looking at developing
the railways system from Elephant Pass to Jaffna," he said.
This was in response of the Ambassador's briefing him that in
September 2009, an important Czech railways delegation will be visiting
the island.
Another possible inflow of Czech investment was in upgrading Sri
Lanka's oil refinery. Iran was going to finance 70 percent of the
upgrading, but the Czech Republic is willing to finance the balance 30
percent through the provision of equipment on soft terms. In that
connection the Ambassador said that much of the oil refinery technology
of Iran was Czech, hence there would be no problem of compatibility.
Minister Yapa also told the Czech Republic delegation that Sri Lanka
was looking at projects in township development.
This was vital at this stage due to the destruction resulting from
the conflict. On the tourism front, the Czech delegation expressed
interest in developing small hotels and one Delegate Company expressed
interest in setting up a boutique hotel.
While in Colombo, the Czech delegation will also be meeting
authorities from relevant state institutions such as the Tourism
Development Authority, the Airport and Aviation Services and the Civil
Aviation Authority and the Railways Department.
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