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Sri Lanka In Talks With Malaysian Firms On Investment Interest
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Colombo News Desk CND on 20 May, 2010 08:15:00
 
Sri Lankan High Commissioner to Malaysia, Dr Don Dandayanda Ranasinghe, said the
companies, which included Sunway, YTL, Genting and Berjaya, showed interest in
sectors like tourism, infrastructure, education and financial services.
"Discussions are still ongoing and progressing very smoothly," he told reporters
after a seminar on "Business and Investment Opportunities in Sri Lanka"
organised by Malaysian Investment Development Authority (MIDA) and Sri Lanka
here on Thursday.
Among the major Malaysian companies having operations in Sri Lanka are Axiata
Group Bhd in cellular mobile phone network, Merbok Hilir Bhd in medium density
fibreboard, Lagenda Sentissa Sdn Bhd in public payphone system, Felda Marketing
Services Sdn Bhd in cultivating oil seeds and hydrogenated edible oil, and
Pembinaan Wincon Sdn Bhd in housing development.
Saying that Malaysia was expected to remain as one of the main investors in Sri
Lanka in next five to 10 years, Ranasinghe said the Sri Lankan government was
calling on the Malaysian business community to invest in various sectors
promoted by BOI Sri Lanka as the country was now in a new phase of economic
development.
Among the sectors are infrastructure, tourism, education, logistical services,
agriculture, manufacturing, rubber industry, business process outsourcing and
software industry as well as gems and jewellery.
Ranasinghe said Sri Lanka aimed to attract US$1 billion in foreign direct
investments this year from last year's US$889 million as foreign investments
will play a major role in economic development.
"Sri Lanka, which has gone through a difficult and turbulent period of over
three decades due to internal conflict, is now at a turning point in our
history, both politically and economically," he said.
According to Ranasinghe, Sri Lankans are now enjoying peace and security within
a stable political environment under the present government led by President
Mahinda Rajapaksa, adding that the government is fully aware of the needs and
expectations of foreign investors in their business activities.
"Therefore, the government has entered into a process of fast-tracking the
development of infrastructure such as roads, airports, harbours and power supply
while expanding the related services, including insurance, telecom services, and
sea and air connectivity," he said.
Ranasinghe said Malaysian investors could join the Sri Lankan government in
developing infrastructure facilities under the private and public investment
programme.
"Also, the Sri Lankan government has signed bilateral investment protection and
double taxation relief agreements with more than 20 countries, including
Malaysia," he said.
MIDA director-general Datuk Jalilah Baba said Malaysian investment in Sri Lanka
for 2008 amounted to RM96 million and for the January-September 2009 period, it
totalled RM26 million.
Major investments were in services, manufacturing, financial intermediation,
real estate activities and construction, she said in her speech at the seminar.
The text of her speech was read by MIDA senior director of investment, Phang Ah
Tong.
On bilateral trade, Jalilah said total trade between Malaysia and Sri Lanka
amounted to RM394 million for the first three months of this year, with exports
at RM309 million and imports at RM85 million.
Last year, total trade between both countries amounted to RM1.32 billion, with
exports at RM1.17 billion and imports at RM150 million, she said.
"There is vast potential to increase trade between both countries. Malaysia can
supply Sri Lanka with a wide range of quality products such as electrical and
electronic products, rubber and wood products, palm oil, and optical and
scientific equipment," Jalilah said.
"Sri Lanka can further strengthen the export of food and agriculture products to
Malaysia," she said.
Jalilah also called on Malaysian companies to take advantage of the
opportunities available in Sri Lanka and the incentives provided by the Sri
Lankan government, saying that Malaysia was now well-positioned to pursue
cross-border investments.