British firms expand scope

Credit guarantee increased to £ 200 m:

Indunil HEWAGE

British companies have made more inquiries to do business in Sri Lanka particularly in infrastructure development projects.

Addressing a media briefing yesterday UK’s Exports Credit Guarantee Department (ECGD) UK Country Risk Analyst Olwen Renowden said growth prospects are good and there is an opportunity to develop infrastructure in Sri Lanka now. British companies have shown interest to do business in capital goods and infrastructure here considering the opportunities Sri Lanka has after the dawn of peace, she said. ECGD has also increased its level of cover available for Sri Lanka, from pounds 150 million to pounds 200 million. ECGD has lifted its level of cover to Sri Lanka as a result of peace dividends and increased interest by UK companies operating in Sri Lanka.

Current projects under consideration for the ECGD support include a water supply project, flood protection projects, slope stabilization measures and more bridges.

The ECGD already has firms queued up, seeking support for pounds 250 million worth of business. However, this does not take into account the substantial business opportunities about to be launched, not only in the reconstruction and development of the North and East, but in Sri Lanka as a whole.

For example, the Greater Colombo Wastewater Management Project, due to start by the end of this year, is alone worth over pounds 200 million. The Colombo Port Expansion project, already under way, costing around pounds 300 million, is another major project suitable for UK engineering and consultancy firms.

Other major projects at feasibility stage include nationwide upgrade of electricity transmission, overhaul of highways and rail networks and the development of Sri Lanka’s fishing and marine industry.