Korea FDI’s down from US$ 21,685mn in 2001 to US$ 615mn in 2015 | Daily News

Korea FDI’s down from US$ 21,685mn in 2001 to US$ 615mn in 2015

Sri Lanka and Korea trade is on the decline and the lack of market openings for Korans is a major factor for this, said Song Yoocheul, Senior Research Individual at the Centre for International Economic Studies.

Speaking at a seminar, one strengthening economic corporation between Korea and Sri Lanka in Colombo he said that better market openings are needed for more Korean investors to enter the Sri Lankan market. Koreas Foreign direct investments to Sri Lanka to had declined from US$ 21,685 in 2001 to US$ 888 last year. FDI’s for 2015 so far is US$ 615 million.

Korea main exports to Sri Lanka, includes, knitted or crocheted fabrics, motor vehicles, cotton yarn, iron and non alloy steel, woven man made textile fabrics and petroleum oils. “Fundamental issues, long standing politics, should be in place immediately by the government to woo more investors,” said, Senior Individual at the Path finder Foundation and Srimal Abeyrathne, Professor of Economics in the University of Colombo.

“India and China are the largest source markets for Sri Lanka imports whilst India holding the position of the third largest export market of Sri Lanka after USA (25%) and UK (10%) but with a Korean export market in Sri Lanka ranging to 0.7% and imports 2.0%“.

He added that new initiatives for deeper integration for new bilateral agreements are under negotiation but South Asian Free Trade Area (SAFTA) or any other bilateral trade agreement does not seem to have a significant impact on production fragmentation within the South Asian Region.”

One of the Korean investors highlighted that he was last in line of all the Korean investors in to Sri Lanka and there should be an improvement in Sri Lankan market openings to encourage more Korean investors to be brought in to Sri Lanka. 


 

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