Country expecting strong UK delegation for Expo 2012:

UK keen on Sri Lanka's tourism sector

British investors are keen on investing in Sri Lanka's new phase. They are specifically eyeing Sri Lanka's tourism sector. Meanwhile, Sri Lanka invites strong business and industry delegations from the UK to Sri Lanka Expo 2012 show.

"Sri Lanka's tourism sector is very promising with good potential" said visiting British MP James Wharton. Wharton was paying a courtesy call on Industry and Commerce Minister Rishad Bathiudeen on Tuesday at the Ministry premises. Accompanying Wharton on the two member UK parliamentary delegation was his Political Advisor, Chris Duggan.

Industry and Commerce Minister Rishad Bathiudeen (centre) greets visiting British MP James Warton yesterday at the Industry and Commerce Ministry. Political Advisor to Wharton, Chris Duggan (left), looks on.

"I believe that prospects in Sri Lanka tourism are very high. We had discussions on Sri Lanka tourism in London among us, especially on improving Sri Lanka's image in the UK," Wharton said.

"British investors are invited to invest in our tourism, agro, infrastructure, and industries. A shortfall of hotel rooms while a tourism boom takes place open opportunities for British construction firms here. Also, using Sri Lanka as a base, they can export to India by taking advantage of the Indo-Lanka Free Trade Agreement. More than 4,000 product lines are now open for British investors under Indo-Lanka FTA," said Minister Bathiudeen, addressing the two member British delegation.

"Sri Lanka's IT sector has very high potential along with strong capacity for BPO and KPOs. The BPO sector is open for high value addition process," Minister Bathiudeen said.

"Sri Lanka is also becoming a strong logistical and a maritime hub. Sri Lanka provides a friendly environment for British investors as a result of the development vision of President Mahinda Rajapaksa.

We also strongly encourage investments in the North and the East," Minister Bathiudeen added and said, "I invite strong business and industry delegations from the UK to our mega export show 'Sri Lanka Expo 2012' to be held in March in Colombo. This show is held after more than 15 years lapse." According to the Commerce Department, Sri Lanka's trade with the UK has recorded a considerable increase during the years 2001-2008.

The value of total trade between the two countries registered at US $ 1287.3 million in 2010, increased by 0.8% over the previous year.

The trade balance between the two countries has been in favour of Sri Lanka during last 10 years, mainly due to increase in the exports of textile and apparel to the UK on zero duty under the GSP Plus arrangements.

Among major Sri Lankan exports to the UK are apparel and clothing accessories, fish fillet and fish meat fresh, chilled or frozen, bicycles, food preparations, tea and gloves.

Responding to Minister Bathiudeen's investment call, Wharton stressed: "Sri Lanka should send the message to the diaspora that if they invest here, their investments will be secure. This will give a positive sign for British investors looking to invest here."

The UK is one of the major investors in Sri Lanka. British companies have invested in Sri Lanka in diverse areas such as textiles, garments and accessories, electronic products, security printing, tourism, infrastructure development, rubber based products, activated carbon, prawn farming, agriculture, food processing, computer software development and data entry services, business, financial and educational services.

Leading British based companies in Sri Lanka are Unilever, British Tobacco, Glaxo Limited, Smith Kline Beecham, Brook Bonds and Lipton, Lloyds of London, Courtaulds Textile plc, Oxley threads, Coats Viyella, Marks and Spencer, P and O Navigation Company, and Thomas de La Rue.