Sri Lanka to become London’s ‘City’ partner

A land of economic opportunity is how I would describe Sri Lanka to a possible investor. Lately described by some commentators as the country that is grooming itself to be the next Asian tiger economy, my visit as Lord Mayor of the City of London comes at an opportune moment. 

With President Maithripala Sirisena coming to power in January, change is certainly underway in Sri Lanka. And change which means an opening up of markets is positive news for international investors and trading partners. For UK businesses, this reform is welcome news as we look to South Asia for business opportunities.

Reform

Running on a platform of good governance, President Sirisena’s words to mend the nation’s bridges with the international community, particularly the West, could usher in a new era of strategic trade opportunities. As ambassador for the UK’s financial and professional services sector, I travel the world extensively looking to build economic bridges with key markets. Sri Lanka is certainly one of those.

With GDP growth an encouraging 7.2% last year and consumption expected to pick up this year, Sri Lanka will be further boosted if we see improvements to the business environment. However, with Sri Lanka ranked 99th in the World Bank’s ‘Ease of Doing Business’ report for 2015, there is still some way to go.

As things stand, foreign retail investment remains thin, but crucially access is widening. For example, rail services between the north and the south of the island were connected for the first time in over two decades in October, both a functional and symbolic event for Sri Lanka. 

These widespread opportunities in construction and restructuring programmes do exist, but Public-Private Partnerships between the Sri Lankan Government and foreign companies remain a much untouched area. I want to show that the UK’s world class businesses possess the right expertise and experience in helping get infrastructure projects like these off the ground, working through innovative finance models to capability studies and delivery.

Education, training and qualifications

Another area of our expertise is the field of education, training and qualifications (ETQ), which are key factors for a successful economy. As Chairman of the globally-renowned Chartered Institute for Securities and Investment (CISI) I know just how essential they are. They can help upskill the domestic workforce, facilitating the development of the financial and professional services industry and equipping the economy with a deep pool of talented, qualified and knowledgeable employees.

 

The CISI recognises the demand for qualified candidates to support Sri Lanka’s financial services industry by establishing an office in Sri Lanka which has helped individuals and firms to attain and maintain high standards of competence, behaviour and integrity. 

The CISI also recognises the demand for qualified candidates to support Sri Lanka’s financial services industry by establishing an office in Sri Lanka which has helped individuals and firms to attain and maintain high standards of competence, behaviour and integrity. 

Certainly, when it comes to ETQ, the UK and Sri Lanka already have a deep and strong relationship. British education is highly valued by Sri Lanka with 8,000 students each year obtaining school qualifications via the British Council. On top of this are the 28 UK universities with a presence in the country already, linking with educational providers offering undergraduate and postgraduate qualifications.

But it is also in the field of professional qualifications where the UK is a strong partner for Sri Lanka. Take the statistic that Sri Lanka has more Chartered Institute of Management Accountants and Chartered Institute of Marketing qualified students than any other country apart from the UK as an example. 

Tie-ins between our two nations in the ETQ field are symptomatic of how working closely can benefit both of our economies as we look to build the capable, energetic and skilled workforces of tomorrow. 

Giving awards to those who have qualified with CISI at an awards ceremony at HSBC and Millennium IT next Monday only scratches the surface when we consider how many young Sri Lankans further their careers through the UK’s higher education and training providers.

Cooperation 

Greater cooperation and the importance of education and in particular financial literacy are going to be the key themes in my meetings with Government, Central Bank and regulators. It’s also symbolised through the growth of Millennium IT, a company under the London Stock Exchange Group and the IT provider behind the Colombo Stock Exchange, shows just how cooperation can benefit our economies on both sides of the globe. 

Visiting one of the world’s leading innovative technology businesses on Monday is going to be an interesting fact-finding opportunity, especially when their systems are at the heart of market exchanges across the globe, including the London Stock Exchange. And other UK companies already start from a strong position with a considerable presence found from the likes of HSBC, De La Re, Standard Chartered, GSK and M&S, with 2013 seeing a record year for business wins with $3 billion’s worth of contracts signed.

On top of this we are already among the top ten investors in Sri Lanka, but I do actually think the UK should be ambitious and improve on this standing. It is in the very areas of services outsourcing, ICT, ETQ providers, transport infrastructure, healthcare and renewable energy where we want to further boost our partnerships. 

The emerging economies are less risk-averse, more agile and increasingly attractive to investors and the Sri Lankan economy could place itself firmly in this field in the years to come. The UK cannot pass up this opportunity.