Lanka-Prague sign investment protection pact

External Affairs Minister Prof G.L. Peiris met with Czech Republic’s Finance Minister Miroslav Kalousek, at the Finance Ministry in Prague on March 28. The two Ministers concluded their discussions with the signing of the Agreement for the Promotion and Reciprocal Protection of Investment between Sri Lanka and the Czech Republic.

Minister Prof G.L. Peiris with Czech Republic’s Finance Minister Miroslav Kalousek

The agreement provides for full protection of foreign investment, guarantees against expropriation, granting of Most Favoured Nation (MFN) and National Treatment to investors and their investments and also provides dispute settlement mechanisms.

The Czech Finance Minister highlighted the positive sentiments of the Government and people of the Czech Republic towards Sri Lanka. The positive post-conflict economic growth of Sri Lanka was an appropriate moment to initiate greater economic cooperation between the two countries. Kalousek expressed confidence that the Agreement signed by the two sides will add impetus to this process.

Minister Peiris thanked Minister Kalousek for his positive sentiments towards developments in Sri Lanka. He stated that his visit to Prague was taking place at an appropriate moment, as post-conflict Sri Lanka is now reaping the full benefits of its many advantages in the economic sphere. Furthermore, Sri Lanka is seeking collaboration of its international partners in the extensive process of reconstruction and infrastructure development now taking place in the country. Minister Peiris invited the Czech side to contribute to this process with their well-known expertise in several sectors such as power and energy, infrastructure, waste management and other sectors. In this regard, Sri Lanka also welcomed concessionary export financing facilities from the Czech side. The Agreement signed by the two sides would serve as a strong foundation for embarking on a future program of economic and financial cooperation between the two countries. Minister Peiris invited the Czech Minister to visit Sri Lanka in the near future with a trade and investment delegation from his country.

Minister Kalousek welcomed the invitation and agreed to visit Sri Lanka at an early opportunity. He also expressed confidence that the high-level visit by Minister Peiris had opened up opportunities for future cooperation in the economic and financial sectors.