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Attracting US investors

The US is still the biggest economy in the world, despite the recent troubles. US investors still undertake projects in all parts of the world and Sri Lanka is no exception. Sri Lanka is in an ideal position to attract investments from all over the world, not just from the US, with the termination of the war in May this year.

Many investors were biding their time till Sri Lanka achieved peace and stability. With these two factors firmly in place, a large number of investors is knocking on our doors.

Sri Lanka and the United States have enjoyed a special relationship through the years, diplomatically, politically and commercially. The US is among the largest importers of Sri Lankan garments and many other products.

There is a considerable number of Sri Lankans domiciled in the US who contribute to the economies of both countries in a positive way. Many brand names that originated in the US are household words in this country - these products and services are widely available here.

Likewise, many US companies operate here on their own or through a local subsidiary.

But the true potential for trade and investment between the two countries has still not been fully realized. There is much potential in Sri Lanka for investors from the United States to invest in a wide range of sectors such as IT, construction, infrastructure, gem and jewellery, fisheries, agriculture and tourism.

The latter is experiencing a boom with the dawn of peace. The reconstruction of the North and the East also opens almost unlimited possibilities for investors.

The Governments of Sri Lanka and the United States have taken steps to strengthen business and investor partnerships at a time when stability and peace had returned to Sri Lanka, says Assistant United States Trade Representative for South and Central Asia, Michael Delaney.

Sri Lanka and the US should work to finalise the much-talked-about Free Trade Agreement between the two countries which will help raise the two-way trade. This is a lengthy process which will turn out to be beneficial in the long run. Another point is obtaining Most Favoured Nation status from the US for trade purposes.

In the meantime, Sri Lanka should promote more investments from the US, citing its advantages. One of the primary factors that weighs in our favour is the workforce. The Sri Lankan workforce is highly admired by all investors. They are highly skilled, easy to train, hardworking and committed. Most of them have a passable knowledge of English, the lingua franca of trade and commerce - it is thus easy even for expatriate staff to interact with the staff.

Another major advantage for US investors is Sri Lanka's gateway status to the SAARC region. It is an under-exploited, huge market that could be tapped by US investors willing to set up ventures here and there is the possibility of gaining further advantages from Sri Lanka's FTAs with a number of SAARC nations.

Yet another advantage for US investors is that the Board of Investment provides a one-stop-shop service, with minimal red tape. Thus investments can take off faster and achieve a turnaround swiftly. The overall business climate is also quite friendly to foreign investors and they can also count on local professionals and managers to fill the top vacancies.

It will be vital to encourage at least some of these investors to move beyond the Western Province to achieve equitable development in all provinces.

There should be commensurate development in terms of roadways, telecoms, port facilities and power generation for this to be effective. The Government has indeed included such plans in its development drive. There is a vast potential for new ventures in the emerging East and the newly liberated North.

The Sri Lankan mission and the BOI should conduct more investment roadshows in the US to educate potential US investors.

Sri Lankan companies should also be assisted to participate in US trade fairs and exhibitions, which may help clinch more export orders. We have only touched the tip of the iceberg as far as trade and investment between the two nations is concerned.

A focused, concerted approach is essential to attract more investors from North America to our shores.