German companies to re-invest in Sri Lanka | Daily News


 

German companies to re-invest in Sri Lanka

AHK Sri Lanka conducted a Vocational training for youth and successful participants were produced certificates. The trainers and officials of AHK Sri Lanka. Picture by Saliya Rupasinghe
AHK Sri Lanka conducted a Vocational training for youth and successful participants were produced certificates. The trainers and officials of AHK Sri Lanka. Picture by Saliya Rupasinghe

Over 29% of German companies based in Sri Lanka are planning to reinvest in Sri Lanka in the post Covid-19 era, said Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) Chief Delegate Andreas Hergenrother.

Germany will be fielding 15 member business delegation to visit Sri Lanka in November. The delegation will have a mix representation of multinational companies and SME. “They are keen to look at energy sector and also joint ventures and manufacturing and export of PPE, food and rubber based products, said Chief Delegate Andreas Hergenrother.

He said that the other companies and agents of Top German brands in Sri Lanka too want to stay in Sri Lanka and carry on their businesses mainly due to the professional manner in which the government contained the spread of Covid-19 pandemic in Sri Lanka. From Asia, Sri Lanka may be the ‘best Covid managed country’ after Vietnam and Taiwan.

This will also give a major plus point to woo FDI, relocation of global officers, ‘Make Sri Lanka your home concept’ and also for tourism for Sri Lanka. “We are also trying to position Sri Lanka as a ‘high potential investment hub’ for German companies mainly due to Lanka’s geographical location and the FTA’s bi lateral agreements country has with India and Pakistan and other countries. What we want to promote is ‘make in Sri Lanka and re-export concept’ not only to the region but beyond. We see new opening emerging in manufacture of personal protective equipment (PPE), chemicals and rubber based products,” Hergenrother said.

He however said that the government would have to re think of ownership laws for international investors since only 40% is given as against 100% ownership in countries like Singapore.

He said German tourists are the biggest growth market for Sri Lanka with typical stay of 16.3 days and averaging around 2.19 million room nights as against Chinese 1.39 room nights.

Sri Lanka bilateral trade to Germany also saw a sharp increase with exports totaling Euro 755 million in 2019 as against Euro 317 million imports. He also observed an 80% drop in apparel exports but a pickup in export of PPE equipment.

He said that there is a great demand for Sri Lanka Exotic fruits and vegetables and spices and local companies must participate in Trade fairs that will open up soon. We have also seen a demand for local beer and Arrack. Hergenrother said that they conducted a survey among CEO’s of 160 German based companies in Sri Lanka and found that none of companies based in Sri Lanka retrenched their staff or initiated pay cuts. Commenting on impact of Covid to German workforce he said it was not badly felt as the country reduced the working hours of staff rather than ‘job cuts’.

 


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