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Monday, 19 October 2015 00:00 - - {{hitsCtrl.values.hits}}
From right: NWS Holdings Group Managing Director Viraj Malawana, Jetwing Group Chairman Hiran Cooray, Micro Holdings Chairman and CEO Dr. Lawrence Perera, Indocean Developers Ltd./Altair Director and President Sales and Marketing Pradeep Moraes, SriLankan Airlines Japan Country Manager Fawzan Fareid, Head of Sales Keiichi Kawasaki, Just In Time Group Chief Technical Officer Navin Seneviratne and Spa Ceylon Director and CEO Shalin Balasuriya
Japanese Foreign Minister Fumio Kishida shakes hands with Tourism Minister John Amaratunga in Tokyo at the NWS Holdings Investor Forum on Sri Lanka. Bansei Holdings Co. Ltd. Japan President Toyohiko Murakami, NWS Holdings Chairman Takashi Igarashi and Group Managing Director Viraj Malawana are also present
The ballroom of the New Otani Hotel in Tokyo was packed and colourful as some of the female participants wore hats and a few 
dressed in traditional kimono. Those present were not just part of a fancy crowd but were actual investors in the future of Sri Lanka. They gathered in large numbers for reaffirmation of why their investments, primarily in Sri Lanka Government Bonds, had paid rich dividends and to hear of new opportunities in post-war Sri Lanka.
In that sense, the Sri Lanka Business Forum - hosted by Sri Lanka’s NWS Holdings Ltd. and Japan’s Bansei Securities Group, drawing nearly 300 actual and potential investors - was a meeting of achievers with an enthusiasm to engage more for a mutually beneficial relationship.
Considering the content of the speeches and presentations made in Japanese, including that by Chief Guest Japanese Foreign Minister Fumio Kishida, the clear message was that Sri Lanka is a new destination that is highly attractive and secure for both investment and those looking for an exotic holiday.
NWS and Bansei have held similar foras during the past few years with a large number of participants. However, the 2015 forum was significant given the fact that Japanese Foreign Minister Kishida found it important to attend and deliver the keynote address. This gesture augurs well for Sri Lanka-Japan bilateral ties under the new Unity Government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe.
In fact, the 2015 Tokyo Business Forum coincided with the five-day State visit of Premier Wickremesinghe. Him choosing Japan as the second country to make a State visit to since assuming the Premiership and ninth to date further bolsters prospects for better ties.
These factors, as well as a record participation for the 2015 forum, have raised the profile of NWS Holdings and Bansei Securities and aided their genuine efforts to boost Sri Lanka-Japan private sector collaboration.
In the past five years, NWS and Bansei have been responsible for attracting nearly Rs. 60 billion in Japanese investment to Sri Lanka’s sovereign debt and private capital markets. Direct foreign investments via capital and private equity have benefitted several sectors such as transportation and logistics, tourism and financial services. Over a dozen Sri Lankan companies have found Japanese investors or partners as well as customers.
At the recent 2015 forum as well, fruitful engagement between participating Sri Lankan firms - including Just In Time Holdings, Jetwing Hotels, Micro Holdings, Indocean Developers Ltd/Altair, Spa Ceylon, Siddhalepa and Spear Global Holdings - and Japanese firms was evident. Firms such as Softlogic 
Stockbrokers, Wealth Trust Securities Ltd., Arika Villas - Wipra international Ltd., Mandira Bungalows - Zinc Journeys and Ideal Finance Ltd. were also promoted at the forum.
It was the sixth roadshow and investor forum organised by NWS Holdings, but this year the scope was expanded to cover additional sectors. These included tourism, leisure and lifestyles, real estate, property development and construction, manufacturing and ICT apart from financial services and capital markets. The Sri Lanka embassy in Japan also played a very supportive role this year.
With the impressive success of their endeavours so far via the 2015 forum, NWS and Bansei have laid yet another solid platform for a stronger and mutually beneficial Sri Lanka-Japan partnership for the future.
Following is the exclusive Daily FT coverage of the NWS-Bansei 2015 Sri Lanka Business Forum held on 5 October in Tokyo.
Success in SL encourages Bansei to look for more
Bansei Chairman Toyohiko Murakami in his welcome speech briefly shared his company’s experience and success in investing in Sri Lanka, including in PABC and Bansei Royal Resorts. Additionally, Bansei has set up Margin Finance Company and Consulting Firm.
Murakami said that it was this success which encouraged Bansei in partnership with NWS to promote Sri Lanka further to a wider group of Japanese investors and companies. He also emphasised that a Japanese investment of over Rs. 30 billion in the Sri Lankan Government debt market signified support for Sri Lankans while enjoying an attractive return.
He said that the visit of Japanese Prime Minister Shinzo Abe in September last year and the recent visit of Sri Lankan Prime Minister Wickremesinghe had strengthened prospects for better ties between the two countries.
Japanese Foreign Minister upbeat over greater bilateral ties; urges private sector to help Sri Lanka’s development
Japanese Foreign Minister Fumio Kishida in his keynote address declared that bilateral ties with Sri Lanka would be further strengthened and urged his country’s private sector to contribute to the future development of the island nation.
He addressed the forum soon after a meeting with the then visiting Sri Lankan Prime Minister Ranil Wickremesinghe in Tokyo.
Kishida said that historical and amicable relations between Sri Lanka and Japan were about to be significantly strengthened following discussions between Premier Wickremesinghe and his Japanese counterpart Abe.
However, the Japanese Foreign Minister said that a stronger economic relationship could not be achieved only through the efforts of the Government. “Powerful initiatives of the private sector together with the efforts of the Government make it possible to achieve the goal. I believe this forum is very timely in such circumstances,” Kishida said.
“I expect that many Japanese companies including Bansei Group will contribute to economic development promoted by the new Government through brisk and lively business activities, and consequently the bond between people in Sri Lanka and Japan will be stronger,” the Japanese Foreign Minister added.
Minister John Amaratunga flies Sri Lanka flag high
Guest of Honour Tourism and Christian Affairs Minister John Amaratunga in his speech noted that the 2015 event was the sixth to be held in Tokyo by the NWS Group, all of which have garnered significant investments for Sri Lanka.
“Historically, our two nations Japan and Sri Lanka have enjoyed extremely friendly and productive relations starting from the days of our former President J.R. Jayawardena and culminating in Prime Minister Abe’s visit to Sri Lanka in 2014,” Amaratunga said.
He said that Premier Wickremesinghe’s decision to make Japan the second foreign destination he visited after taking office demonstrated the importance and trust Sri Lanka places in Japan as a key ally in the region.
“The Prime Minister’s visit will surely strengthen the work that has already begun and foster further investment and relations between our two countries,” the Minister added.
He said that the new Sri Lankan Government agenda was strictly non-aligned and was set on positioning Sri Lanka as a hub for the entire region given the free trade agreements Sri Lanka has with India and Pakistan.
“Sri Lanka is currently experiencing a GDP growth of 6.7% and we are confident of continuing this momentum over the next few years,” the Minister said.
He went on to state that Sri Lanka had embarked on several infrastructure development projects which were sure to contribute positively to all sectors of the country’s economy including tourism.
The ‘Megapolis’ and ‘Port City’ are two such examples of large-scale projects which will enhance our tourist offerings, providing entertainment and attractions in the city. Colombo, the commercial capital of Sri Lanka, has also been recognised by Mastercard International as the ‘Fastest Growing City’ for 2014/15.
“In my new role as Minister of Tourism, Japan is a key focus market in terms of tourism and investment. Our ‘Island Tourism’ concept is one that Japan can easily identify Sri Lanka, there are many historic and valuable sites, relics and nature reserves including eight world heritage sites,” Amaratunga said.
The participants at the NWS-Bansei Forum were told that Sri Lanka was also blessed with various religions, beautiful traditions, wildlife and nature, Ceylon Tea, golf, surfing, diving, arts and entertainment, etc. Various cultural as well as people-to-people exchanges between Japan and Sri Lanka have taken place during the past years through the good bilateral relations of both countries.
“In fact, our Tourism Advisor in Sri Lanka Takashi Igarashi has already invited the Taiheiyo Club of Japan to Sri Lanka and I am told that there are several golf programs scheduled for the coming year. Another focus area is Ayurvedic Tourism, giving our guests relaxation in mind and body, which I believe is extremely popular amongst Japanese,” Minister Amaratunga said.
He said it was also noteworthy that Japanese investors were now becoming more comfortable and more familiar with Sri Lanka and the various avenues of investments that were available to them.
“I assure you that Sri Lanka is embarking on a very vigorous and focused growth plan with a stable and secure political platform. I can also confirm that Sri Lanka as a nation has never defaulted on repayments and as such our Sovereign Bonds are safe and secure investments for foreign investors,” Minister Amaratunga said.
During his speech he also specifically thanked Viraj Malawana and Takashi Igarashi of NWS Holdings as well as T. Murakami and his team from Bansei Group for conceptualising and hosting the Investor Forum.
“It is also my duty to express our deep gratitude to each and every one of the investors who have made investments into Sri Lanka Government Bonds in the past few years. It is due to your contribution that Sri Lanka is experiencing the type of growth I spoke of earlier. Therefore I urge all of you here today, now is the time to invest in Sri Lanka. Thank you all for the interest you have shown by being here and participating in this forum,” Minister Amaratunga stated.
He said that the potential the Government saw was enormous and “we invite all of you to come to Sri Lanka and see for yourself what we will showcase to you today and be part of Sri Lanka’s growth in the coming years.”
Former Japanese Ambassador speaks for Sri Lanka
Former Japanese Ambassador to Sri Lanka Nobuhito Hobo in his presentation spoke of the promise shown by the Sri Lankan economy.
He said that Sri Lanka’s post-war economic growth had been impressive along with single-digit low inflation and declining unemployment. However, he noted that the country still faced several challenges, including a high budget deficit and public debt, which the new Government is keen to address.
Hobo said the new Government had promised good governance and democracy and with sound policies the economic outlook for Sri Lanka was very positive.
He told the NWS-Bansei Tokyo Forum participants that going forward there were four major points which would benefit the Sri Lankan economy. One was the geopolitical advantage of being next to India and within South Asia which is filled with emerging economies. The other is the new democratic Government focussing on reducing inequality within the country. The third factor is the strong human capital in Sri Lanka with a high education and literacy level, life expectancy and clean environment. The fourth factor is natural resources and attraction such as tourism, fishery and agriculture.
“These factors have brought about an increase in foreign direct investments and tourists to Sri Lanka,” Hobo added.
Hon. Consul in Osaka tells brighter prospects for Japan in SL
Sri Lanka’s Honorary Consul in Osaka, Udaya Aluthgamage, in his speech traced the long and rich history of friendship between Japan and Sri Lanka. He also touched on some of the political highpoints, including the famous speech by former President J.R. Jayawardena in favour of Japan at the San Francisco Peace Conference in the late 1950s.
Aluthgamage also detailed some of the successful Japanese private sector investments in Sri Lanka that were established many years ago and still prospering. “Over 160 Japanese companies are doing business in Sri Lanka and about 1,000 Japanese nationals are living and working in Sri Lanka,” the Osaka-based Honorary Consul told the NWS-Bansei Tokyo Forum participants.
“I see brighter prospects for future Japanese investments in Sri Lanka,” he added.
NWS Holdings Chairman Takashi Igarashi, who has been engaged with Sri Lanka for over two decades, in his speech said he was personally pleased by the fact that there had been around Rs. 35 billion invested in Sri Lanka Government Bonds by Japanese investors, many of whom were present at the forum.
He said NWS partner Bansei Securities has also made significant investments in Sri Lanka and now owns 15% of Pan Asia Bank Plc as well as 80% of Bansei Royal Resorts Hikkaduwa Plc. Bansei officials also serve on the boards of these two companies.
Referring to six companies who were part of the Sri Lanka private sector delegation for the 2015 forum, Takashi said that among them are well established and emerging companies which the Japanese could consider for investments and partnerships.
“The NWS Group, together with Bansei, welcomes you to Sri Lanka and we assure you of our support and cooperation. Sri Lanka is waiting and eager for Japanese investors and tourists and I am confident you will enjoy the opportunity,” Takashi told the participants of the NWS-Bansei Tokyo Forum.
After the ceremonial inauguration, several companies within the Sri Lankan contingent for the forum made presentations.
Among them were SriLankan Airlines, which extended its special support to the forum, Just in Time Holdings, promoting a range of products and services as well as joint ventures in the ICT sector, Jetwing Hotels promoting its range of luxury hotels, resorts and villas, Indoocean Developers/Altair promoting its 404-unit luxury apartment complex in Colombo 2, Micro Holdings promoting property development and construction as well as the automobile business, Spa Ceylon, promoting its products and Pan Asia Bank promoting its performance and future plans to draw more investments. The representatives spoke of their respective companies’ progress and future plans, especially those targeting Japanese investors.
Following the sessions the NWS-Bansei Forum concluded with a reception where delegates from both countries got an opportunity to network. Three lucky delegates won return air tickets to Sri Lanka for a holiday courtesy of national carrier SriLankan Airlines, which operates four convenient direct flights between Colombo and Narita, Tokyo.
NWS Holdings Group Managing Director Viraj Malawana was elated with the success of the 2015 forum.
“The record participation confirms the growing interest from Japanese side on Sri Lanka. We see Japanese investor appetite for Sri Lanka growing further in the coming months,” he said.
More Japan-Sri Lanka collaborations are on the cards. NWS and Bansei have brought together separate parties to explore prospects for building business hotels in Colombo. Another major Japanese company has also signed a MoU with a leading Sri Lankan company for a major project in the ICT sector.
Last year NWS-Bansei was responsible for Japan’s SG Holdings buying 51% stake in Expolanka Holdings Plc for Rs. 11.5 billion. Clients of Bansei who have been predominantly focused on Government bond market have also begun to explore opportunities in private fixed income market and recently a bank saw $ 15 million Japanese investment in a fixed deposit.
The Daily FT spoke to several first-time participants from Sri Lanka at the NWS-Bansei Sri Lanka Investor Forum in Tokyo.
Jetwing Hotels Chairman Hiran Cooray
Jetwing Hotels Chairman Hiran Cooray, another first-time participant at the NWS-Bansei Forum, said that it was a “great eye-opener”.
Jetwing participated in the previous year’s event but for Cooray it was his first experience.
“I was very impressed with the forum and the calibre of people who attended and the interest shown was a great eye-opener,” Cooray said.
“Japan is a high potential market and Sri Lanka can benefit if one has the patience and perseverance,” the Jetwing boss added.
Encouraged by prospects following its first-time participation in the 2014 event, Jetwing has recently set up a joint venture office in Tokyo to directly serve the Japanese market.
Indocean Developers Ltd/Altair Director Pradeep Moraes
Q: Altair is a first-time participant at the NWS-Bansei Sri Lanka Investor Forum series. How was your experience?
A: I did have high expectations based on NWS’ assurance that lot of groundwork and promotion had been done and previous events had produced good results. However, I must say I was very pleasantly surprised that the way the forum was organised and the type and number of delegates who attended was far above what we expected.
What was more relevant is those who attended were not nominees of companies or speculative investors or mere inquirers but actual investors who put their money where their mouth was previously via NWS-Bansei facilitation. I am very happy about our participation.
Q: Were there any specific responses to Altair’s proposition?
A: Yes there was positive interest shown by several genuine investors. The fact that there was a return of over 7% impressed them along with the fact that there had been no capital gains tax.
Q: How receptive are the Japanese to property development investments?
A: The Japanese have been savvy and are long-term investors not just fly-by-night ones. So the potential is very high for us.
Q: What’s next for Altair in Japan?
A: We will follow up on interest shown with some firm measures.
Micro Holdings Chairman Dr. Lawrence Perera
Q: What expectations did you have before coming?
A: It was my first visit and the experience was beyond or more than my expectation. I didn’t expect an event of this magnitude and the delegates who attended the forum were very impressive.
Q: What plans did you have?
A: Since I am in the car industry I was keen on seeking some of their technology as well as investments, partnerships and new technology for Micro Holdings’ property development and construction business.
Q: Did the forum help you with those objectives?
A: Yes, to a great extent. Already I have established three contacts for property sector business and I am following them up. On the automobile side, we are looking at technology for the electric car and sustainable energy solutions especially for charging. This is the future. During my trip to Japan I met a company specialising in this area.
Q: What is next for Micro in Japan?
A: We are keen to tie up with good Japanese companies in these two areas. We already have a joint venture with Fujitech which holds a 60% stake in Sri Lankan venture to explore the market for high performance lifts. Similarly I am planning for joint ventures in the construction and automobile industry.
