US keen to increase trade with Sri Lanka

Friday, 7 September 2012 00:01 - - {{hitsCtrl.values.hits}}

Trade show and low interest OPIC loans to interested companies

By Cheranka Mendis

Sri Lanka’s single largest trading partner, the USA, is keen to increase more FDI flows to Sri Lanka as well as see an increase in Sri Lankan exports to the USA in the coming years.

Having a trade balance of US$ 1,048.7 million by end June this year, exports to USA were recorded at US$ 109.7, while imports from the US were at US$ 1,158.4 during the period. In 2011, Sri Lanka exported US$ 302.7 million worth of goods to the country while bringing in goods valued at US$ 2,085.5 million.

US Embassy officials yesterday stated that the institution would like to see more interest coming in from larger US companies that operates with high and modern technology to invest in energy and manufacturing sectors.

“We understand that the Sri Lankan economy is dominated by agriculture and fisheries and that there is great store house of knowledge and a fine educated workforce here,” US Embassy Chargé d’ Affaires William Weinstein said. “However we have also seen that the future in East and South Asia is in increasing the manufacturing base. This is something we are keen to be participants and partners in Sri Lanka.”

He acknowledged the ongoing Trade and Investment Framework Agreement (TIFA) and the reestablishment of the GSP as positive steps taken to build, improve and increase the mutual trade and investment between the countries. “Our companies have competitive business solutions which Sri Lankan companies will find useful. We are keen to attract investors who see the potential in Sri Lanka.”

Promoting trade between countries, the Embassy together with American Chamber of Commerce Sri Lanka (AMCHAM) will host the ‘US Trade Show 2012’ on 16 September at the Hilton Colombo Ballroom Foyer. A total of 26 companies are scheduled to participate in the show and a large number of corporates, Government officials and membership of AMCHAM have been invited for the event.

“At a time when both countries are seeking new opportunities to further develop bilateral trade, the trade show will provide an opportunity for businesses to promote their products and services,” AMCHAM President Vijaya Ratnayake said.

The event, which coincides with the 20th anniversary celebration of AMCHAM, Sri Lanka will be the ideal location for companies to find markets in a list of sectors, which includes imports, exports, tourism, education or investment.

Ratnayake also asserted that AMCHAM now represents Overseas Private Investment Corporation (OPIC) through which low interest loans up to US$ 200 million are available for US companies that shows interest in starting projects in Sri Lanka as well as those already established in areas such as infrastructure, tourism, energy and agriculture.

“We can now facilitate these loans to Sri Lankan companies which have either joint ventures of more than 35% US equity or US companies which are willing to enter into projects in the said areas.”