Lanka seeks more investments from Saudi Arabia

It is important to expedite the implementation of the MoU between Saudi Arabia and Sri Lanka by establishing the proposed joint commission. Sri Lanka also invites Saudi Arabia to the mega export exhibition "Sri Lanka Expo 2012."

The unique requirements and demographic of the Saudi tourist is an incentive for Saudi based investors who are interested in local tourism sector, said Industry and Commerce Minister Rishad Bathiudeen, Sri Lanka at the bilateral meeting with the Saudi Commerce and Industry Minister Abdullah Zainal Ali Reza in Jeddah recently.

"The Kingdom of Saudi Arabia and Sri Lanka have been enjoying a very cordial relationship for many decades. This opens vast opportunities to further consolidate our bilateral cooperation further" Minister Bathiudeen said.

"Although we have a considerable amount of bilateral trade, I believe that there is huge potential to enhance it by further diversifying our trade baskets" Minister Bathiudeen said.

The bilateral trade between Kingdom of Saudi Arabia and Sri Lanka has passed US $ 246 million mark. Sri Lanka's total exports to Saudi Arabia in 2010 was US $ 43.8 while imports from Saudi Arabia was US $ 202.8 mn making the two way trade volume at US $ 246 million. Saudi Arabia is one of the important trading partners of Sri Lanka among the Gulf countries.

"Apart from tea, fruits and nuts, articles of apparel and clothing accessories, rubber and related products, vegetables, paper and paper board, miscellaneous edible preparations, live plants and bulbs, cut flowers feature prominently in our exports composition" Minister Bathiudeen said.

Emphasising the urgency and importance of MoU for a joint commission between the two countries, he said: "Both countries have signed an MoU in establishing a Joint Commission on Trade, Economic, Investment, Scientific, Technical, Cultural, Youth and Sports co-operation in 2003.

It is important to expedite the implementation of the MoU by establishing the proposed joint commission at the earliest so that a strong platform is created to enhance and strengthen the existing bilateral relations between our two nations.

Speaking of the new investment arenas in Sri Lanka, he said another important aspect in mutual trade and economic cooperation is the investment partnership with Saudi Investors specially in the field of agriculture as suitable lands are now available specially in the north and eastern provinces of Sri Lanka.

This can include inland freshwater fishing and aquaculture. Sri Lanka is ready to provide the infrastructure including land to Saudi investors based on a modality of mutual benefit. Sri Lanka's tourism sector is another potential avenue for Saudi Investors seeking growth oriented investments.

This potential comes with the new realistic benchmark of 2.5 million tourist target for 2015 from its current level of 600,000, as envisaged by our government.

This expected boom has created new opportunities specially in star hotels both in the urban and other outlying attractions, such as beaches and mountain ranges.

"The number of Saudi tourists visiting Sri Lanka in their summer holidays has increased to 8000 from 5400 in 2008. Due to the unique requirements and demographic nature of the Saudi tourist, we wish to invite interested Saudi investors to invest in this sector as well," he said.