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Thursday, 26 July 2012

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Sri Lanka, Wonder of Asia

Sri Lanka truly deserves the monicker of the Wonder of Asia. This is what a small group of Filipino business people discovered in a trade and investment mission to Colombo which I headed last May 24-28, 2012. Thanks to the assistance of the very pro-active Sri Lankan Ambassador to the Philippines, Nawalage Bennet Cooray, our group was able to meet some of the highest government officials and top executives of the private sector in such a short period of time.

Sigiriya, one of the eight UNESCO World Heritage sites. File photo

As an economist, I was especially struck by the information that immediately after the conflict of 30 years ended in 2009, the economy of Sri Lanka started to grow at 8 percent per annum and is expected to grow at close to that rate in the coming years, despite the global economic crisis. Even more impressive was the fact that even during the worst years of the conflict that pitted the minority LTTE Tigers, who were using terrorist acts to create an independent state in the Northern and Eastern parts of the island, against the government and the Sinhalese (about 75 percent of the population), the Sri Lankan economy continued to grow at a rate of 5.9 percent, significantly higher than our measly 4 percent during the same period. Even in a politically unstable environment, Sri Lanka reached a literacy rate of 94.2 percent which almost matches our own 95.7 percent.

It was also a surprise to me to learn that Sri Lanka has the highest per capita income in South Asia, the region to which it belongs geographically. Its per capita income of $ 2,877 in 2011 outshines those of India ($ 1,389), Pakistan ($ 1,201), and Bangladesh ($ 678). The Philippine GDP per capita during the same year is $ 2,223. What is more significant, however, is that Sri Lanka has brought down its poverty incidence (population living on less than $1.25 per day) to only 7.0 percent in 2007, compared to 26 percent in the Philippines. Its unemployment rate is only 4.3 percent, compared to our 8 percent.

Tourist attractions

I am glad we traveled for some five hours from Colombo deep into the rural areas (where 85 percent of the population live) on our way to one of the eight UNESCO World Heritage sites, Sigiriya, a magnificent village carved out of a rock mountain by an ancient kingdom. Sigiriya is considered by some to be one of the oldest tourist attractions in the world with early visitors recording their impressions as graffiti on a wall described as the world’s first interactive book. Located 169 km from Colombo, the site consists of a sheer rock that rises over 200 metres with the ruins of a palace on the top and a vast pleasure garden complex at the foot.

During the trip, our guide left the main highways and took us to the inner countryside. There we saw the main reason why, despite political turbulence, the Sri Lankan government was more successful than the Philippines in combatting mass poverty. Everywhere we went, we saw well-maintained farm-to-market roads, irrigation facilities, post-harvest machines, and other rural infrastructures that help the small farmers to be more productive. Sri Lanka, which has a population of a little over 20 million people, is a small replica of Thailand where there is no small farm that is not within one kilometre from a good road. No wonder that among its top exports to the world are tea packets, tea in bulk, rice and cereals, desiccated coconut, cinnamon, processed food and fish fresh or chilled.

Because of its relative success in improving the lot of the rural dwellers, Sri Lanka is more similar in economic standing to such Southeast Asian countries as Malaysia, Thailand, and Vietnam than its South Asian neighbours. We told the business people we met that they should aspire to be, even if only informally, part of the ASEAN Free Trade Area. That would give Sri Lanka a distinct advantage of being the gateway to India and Pakistan for Southeast Asian businesses since it is the only country that has free trade agreements with both India and Pakistan, giving duty free access to 1.3 billion consumers from the island (4,200 products to India and 4,500 to Pakistan).

Ayurvedic treatment

We saw at close range how tourism in Sri Lanka is poised to grow by leaps and bounds in the coming year. The island has recovered completely from both the damages of the conflict and the devastation caused by the tsunami that hit many Asian countries in 2004. Helped by good rural roads and an abundance of beaches, cultural heritage and a very hospitable people (someone in our group remarked that most Sri Lankans are Indians that have lost their argumentative character and have become as good natured as Filipinos). Sri Lanka has seen arrivals steadily increase by 30.8 percent to a record of 855,975 in 2011.

The government targets to increase tourist arrivals to 2.5 million by 2016 through the construction of more hotels. Our own itinerary may give the reader a feel of the diversity of experiences a tourist will experience in Sri Lanka: visit to cultural heritage of Sigiriya on a rock mountain; batik factory; spice garden; gem museum; temple of the sacred tooth relic of the Buddha; cultural performance; and visit to jewellery stores. Because I am involved in the development of an island in the Visayas as a ‘healing island’, I was especially interested in the spice and herbal gardens and the practice of oriental medicine that dates back to centuries BC. Ayurveda the world’s oldest and most holistic medical system - has been practised in Sri Lanka for centuries. Sri Lanka is a leading destination for Ayurvedic treatment, available in numerous, stylish spas.

Mango growers

Finally, to a Filipino, a pleasant surprise in a first visit to Sri Lanka is that we may have a real competitor for having the ‘best mango in the world.’ Most mangoes found in different parts of Asia, Africa and Latin America cannot compare with the fleshy texture, non-fibrous and super-sweet features of Philippine mangoes, especially those grown in Cebu, Zambales and Guimaras. In a meeting with the Export Development Board of Sri Lanka, we were supplied with information about a special variety of mango grown in Sri Lanka called the ‘Nelna Mango.’ Described as having ‘Alphonso, Kartakolumbu and Vilad persona and other traits unique to this variety,’ the fruit is commercially grown and distributed by Nelna Agri (Pvt) Ltd, whose owners we met. Since we were not able to taste their products, I am willing to give them the benefit of the doubt that their mangoes can compete with Philippine mangoes. Mango growers and distributors in the Philippines who want to contact this enterprise in Sri Lanka may get in touch with Nelna Agri Development (Pvt) Ltd, email address [email protected] and website: www.nelna.lk. A possible joint venture between a Philippine company and Nelna Agri Business will open a total market of 1.3 billion in South Asia and 1.9 billion in AFTA plus China for the best mangoes in the world.

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