Investment hub in near future

The end of the three-decade long war has paved the way for unprecedented investment opportunities in the country. No sooner the war ended there was a hive of activity, with the rebuilding of damaged roads, bridges and other infrastructure. All roads and other access routes to the North that were shut for 30 years began to open up with a heavy influx of people and trade to and from the North becoming the order of the day. All this no doubt underlines one essential ingredient for business and trade to thrive. That is peace and stability which no doubt is the vital oxygen that breathes life into a community and spurs activity.

This peace and stability has now begun to attract overseas investors to this country as never before. Not a week passes without some big name international investor descending on the country to explore possibilities. It was only the other day that a delegation from Mahindra & Mahindra Ltd, a leading business conglomerate of India visited Sri Lanka and met President Mahinda Rajapaksa.

Managing Director of the conglomerate Ananth G Mahindra with investments of US dollars 7.5 billion in a wide range of sectors including manufacturing, hospitality, IT, real estate and automotive told President Rajapaksa that they were contemplating expanding their business into Sri Lanka making use of the extensive opportunities that have opened up following the country's return to peace. Mahindra & Mahindra is among the top ten industrial houses in India.

An elated President Rajapaksa told visiting Indian Foreign Secretary Nirupama Rao that Indian investor interest in Sri Lanka was rapidly growing and that several leading Indian entrepreneurs in industry and other sectors have expressed interest in setting up business in Sri Lanka.

Indian investments have formed a large component in the country's investment portfolio over the years. One can be sure that with growing links between the two countries in all spheres, Indian investments in Sri Lanka too will continue to grow bringing it economic stability and prosperity.

From what was conveyed by the President to the Indian Foreign Secretary Indian investment in Sri Lanka is bound to grow injecting a new buoyancy to the country's economy.

This is besides the increasing interest shown by the China to invest in a wide range of sectors in addition to its existing commitments to develop the country's ports and the power sector through its involvement in the Hambantota harbour project and Norachchcholai.

It was only last Friday that Shangri La Asia Chairman Ean Khoon Kouk met President Rajapaksa. The Kouk family is the largest shareholder of the Shangri La Hotels chain with over 67 hotels and resorts spread globally. It is also involved in agribusiness on a large scale.

Without doubt the country cannot go it alone and should woo foreign investment to resurrect the battered economy. Besides we may not have the necessary wherewithal and expertise to develop certain sectors that have been lagging behind the rest of the world due to years of neglect due to the war. Tourism is one sector which we need to catch up on and a substantial investment in tourism no doubt would be a big boon to revitalize this sector. There are also large areas with investment potential that needs to be identified apart from the traditional sectors.

Treasury Secretary Dr P B Jayasundera recently said that the investments both local and foreign are set to reach 35 percent of the GDP in the near future from its previous figure of 22 percent signalling a positive trend showing that the country is well on the road to reap its peace dividend.

An earlier trend in the initial influx of foreign investors in the late seventies was that majority of these investors were fly by night companies who made their fortunes in double quick time and vanished after making optimum use of the Government incentives. However from the profiles of those who are coming forward to invest now there is no doubting that these are genuine investors who will remain here on the long haul.

The Government should therefore gear itself to provide these investors with all the facilities and incentives. The Red tape that was the bugbear of all foreign investors before this should be done away with. True these investors are coming here to take advantage of the peaceful conditions following the war. But we must also ensure them a conducive business environment. For instance, our electricity costs is the highest among the region, a factor which drove away many an investor in the past. There is also need to revive some of our archaic labour laws which also deterred many prospective investors.

From all indications Sri Lanka is set to become an investment hub in the near future. It is up the Government to see to it that the country will befit to the optimum by this new bounty.