New investment opportunities

Sri Lanka's economy is in for good times with the defeat of terrorism and the dawn of peace. Economists predict that Sri Lanka could reach even China's level of economic growth within a couple of years. It was just a few days ago that the Colombo Stock Exchange again broke all its previous records. It is in this backdrop that tourists and investors who had stayed away from Sri Lanka during the conflict are flocking back to Sri Lanka in droves. In addition, the peaceful climate has attracted high profile events such as the current IIFA Awards to Sri Lanka.

Sri Lanka is becoming a hot investment destination and Asian investors have naturally taken the lead. The advantages are obvious - Sri Lanka is the gateway to SAARC and its strategic geographical position makes it an ideal trade bridge between the East and the West.

President Mahinda Rajapaksa, in an address to the investment seminar organised by the Sri Lankan and Indian Chambers of Commerce on the sidelines of the IIFA, expressed the view that the time was right for investing in Sri Lanka.

"Those of you who are keen to explore, will find abundant opportunities for investment in Sri Lanka. The scope is immense: from infrastructure, to agri-business, to manufacturing and to a range of services. You will also find that our country offers a rare package of skills, capacity, and a willingness to learn and adapt. Our policy is vibrant, our package is enticing and exciting, and you would do well to join us in our forward march. I earnestly invite you to do so," President Rajapaksa said.

The President has lucidly explained why investors should opt for Sri Lanka. Indeed, there are vast investment opportunities all over the country, especially in the emerging North and the East. There are new areas and sectors that have opened since the end of the conflict, offering new opportunities. The Government is also keen to ensure that investments reach the provinces, instead of being confined to Colombo. In the case of Indian investors, the main benefits would flow from the proximity of the two countries and the Free Trade Agreement.

He also touched on the close link between peace and development. It is clear that one cannot survive without the other. Peace is needed for development to flourish while development in turn reinforces peace and stability. This will be even more evident in the North and the East. Sri Lanka is poised to reach greater economic heights in the present peaceful climate.

It must be borne in mind that the Sri Lankan economy remained resilient even during the height of the conflict and the worst recession in the world. As the President pointed out, not a single bank or regulated financial institution collapsed during the crisis, due to quick and well planned interventions. Now that these crises are behind us, the sky's the limit for those willing to invest here.

The biggest investment opportunities are in the sphere of infrastructure development. The construction of ports, airports, roads, power plants, water schemes, fishery harbours, railways and bridges are under way at an unprecedented pace. The Government is also aware that a good infrastructure network is essential to attract future investments - the electricity plants and the expressways now under construction are good examples. More investments will also help reduce the current level of unemployment, already among the lowest in the world at 5.7 percent.

It is a good sign that the world is waking up to Sri Lanka's economic success and potential. Individual countries and international lending agencies have granted more aid for development; a US$ 500 million sovereign bond issued last year was oversubscribed 13 times; The New York Times and many other prestigious publications have named Sri Lanka as the best place to visit; tourist arrivals have soared and foreign investors are once again active at the CSE.

There are elements sympathetic to the LTTE, including sections of the Tamil Diaspora, who would like to stifle Sri Lanka's economic growth. They are making sinister attempts to 'punish' Sri Lanka for defeating terrorism and deprive Sri Lanka of trade and investment opportunities. But Sri Lanka has successfully challenged these arguments in the international arena.

Indeed, the Tamil Diaspora now have an ideal opportunity to join the development process of the North and the rest of Sri Lanka along with Indian and other investors from all over the world. Now is the time for international investors to seize the moment and come to Sri Lanka.