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Government’s realisation of the rapidly-growing service and tourism sectors which contribute towards the country’s commercial development.
“This, as well as our geographical location, was appropriate to promote the five-hub concept, to cash in on the environment,” Kelegama said.
As a trading hub, the key hubs are the intended naval, aviation and commercial hubs.
Key areas for potential investment
Listing out the key areas for potential investment, State Management Reforms Minister Navin Dissanayake listed tourism, infrastructure/construction, IT/ BPO and related industries and utilities.
“Having welcomed over one million tourists who brought in US$ 1 billion in foreign exchange last year, it is obvious that the tourism sector is a potential industry. As businessmen do the number-crunching and see what you would like to get into – small, mid or high boutique level investment. There is a lot of energy in this sector,” Dissanayake said.
The Government is also looking to open up investment in the north and east, he added. The private sector has funded the major portion of infrastructure construction via investments in hotels, apartments and high-rise buildings. Growth in this sector has been 20.2% over the previous year in 2012.
Knowledge services
“As a policy maker I am keen on knowledge services,” he said. “We don’t have the scale of India, but there is a lot of scope in IT software development, BPO/KPO, and IT and enabling services. There is a high skilled workforce that has brought in US$ 600 million in 2012, with the aim of bringing in US$ 1 b to the country by 2016.”
If Sri Lanka’s telecom industry were more liberal, it would grow at higher speed, Dissanayake added. In terms of utilities, there is scope for private sector investment in renewable energy projects in wind, hydro and biomass.
Deputy Minister Economic Development M.L.A.M. Hizbullah reiterated the opportunities in the north, adding that apart from hospitality and leisure, there is also scope in agriculture and fisheries. “There is good possibility for large-scale industry agriculture, fisheries and livestock in the north.”
Maritime industry
Speaking on the maritime industry’s role, Sri Lanka Ports Authority Chairman Dr. Priyath Bandu Wickrama noted that the country was aspiring to become a maritime hub for the world’s merchandise sector. “With location as our advantage, the hub concept would save time and money for vessels passing through Sri Lanka.”
“To have all this, you need Government intention, infrastructure, policies to attract investment and competitive port charges. We have all this,” Wickrama said. Ports in Colombo and Hambantota have been developed with an investment of over US$3 billion.
Chinese investment
China Merchant Group (CMG) Assistant President and Colombo International Container Terminal (CICT) Chairman Dr. Hu Jianhua noted that the decision to invest in Sri Lanka was based on “the country’s strategic location, skilled workforce, sound eco system, political stability and open economy”.
Jianhua noted that this was what would attract many more Chinese investors to Sri Lanka. Speaking on the Colombo Harbour Extension Project, he noted that CICT had made a US$ 500 million contribution towards the Colombo South Container Terminal – the single largest foreign investment in the country. While Phase I is now in operation, it is expected to be fully-operational by April 2014. The company has also undertaken the Jaffna-Colombo Expressway construction.
