SL is open for biz must come from private sector too: US envoy

By Uditha Jayasinghe 

Sri Lanka’s “open for business” message must also come from the private sector, America’s top diplomat to Sri Lanka told members of the business community’s largest chamber on Tuesday, while calling for the Government to maintain consistent policies to attract foreign investment.

US Ambassador to Sri Lanka Atul Keshap told the 177th Annual General Meeting (AGM) of the Ceylon Chamber of Commerce that the International Monetary Fund (IMF) programhad given the Government an opportunity to undertake needed fiscal and economic reforms including lower Budget deficits, monetary policy reform; higher Government revenues; State enterprise reform; stronger public financial management; and supporting higher trade and investment.

“An essential element of any country’s business climate is ensuring new entrants have an opportunity to operate effectively. Even as the Government adopts and applies clear, consistent macro-economic policies that say ‘open for business,’ investors also want to hear encouraging messages from the private sector,” he said. 

“Government and the private sector can and should welcome all legitimate newcomers, from domestic start-ups to established multinational firms. New entrants in the market can provide new ideas, vitality, and helpful competition that can benefit the entire economic eco-system. With the correct mix of predictable, sound, and consistent economic policy, there will be plenty of opportunity for the newcomers as well for Sri Lanka’s well-established blue-chip companies.” 

Keshap encouraged Chamber members to continue to explain to the Government and the electorate why economic policy changes were desirable.Along with stability is the need for policy changes that make an inviting economic environment for FDI that is needed to propel Sri Lanka toward long-term economic prosperity.

“I want to stress that US investors steer trillions of dollars of investment toward the most attractive, steady, predictable business opportunities worldwide. US companies lead the world in efficiency, innovation, technology, environmental responsibility, ethical behaviour, corporate social responsibility, and employee relations. These world-class American companies are always seeking to invest and do business in nations with predictable, sound, and consistent economic policy.”

But attracting FDI will require Sri Lanka to overcome stiff regional competition, warned Keshap. India, Bangladesh, Indonesia, Vietnam, Myanmar, Cambodia, and others in the Indo-Pacific region are courting the same investors.

“To win investment dollars, Sri Lanka can give itself a competitive edge by establishing clear and consistent policies in all areas of the economy. Clear, consistent policies are the cornerstone for creating an attractive environment for investors, both foreign and domestic. Policy clarity and consistency level the playing field, create transparency and provide predictability, and these are things investors crave.”