Renewed interest on Sri Lanka from German investors and businesses

Delegation of German Industry and Commerce in Sri Lanka Chief Delegate Martin Klose 

-Pic by Daminda Harsha Perera 

• German Chamber of Commerce and Industry’s local arm AHK Sri Lanka’s Chief Delegate Martin Klose says “Sri Lanka” now back on the table of German businesses and investors following vastly improved macroeconomic environment and uptick in growth prospects
• Identifies President Anura Kumara Disanayake’s recent State visit to Germany was big influencing factor
• Says German companies increasingly looking at new investment and production destinations as part of diversification strategy
• Tips Sri Lanka to be very compelling option for German companies and urges SL to seize the opportunity
• Moots effective promotion of pre-identified sectors most attractive for German companies and ensure proper facilitation and ease of doing business
• Lists logistics and infrastructure, renewable energy, energy conservation and efficiency solutions, IT services, innovation and start-up ecosystem, sustainable agriculture and agri-tech, fintech, healthtech etc. as potential sectors
• Confirms existing German companies in Sri Lanka want to expand further
• Says encouraged by commitment of new administration to boost greater German-Sri Lanka investments and trade and collaboration

By Nisthar Cassim 

Sri Lanka has triggered renewed interest from German investors and businesses in tandem with a vastly improved macroeconomic environment and uptick in growth prospects.

The resurgence in German interest is also linked to President Anura Kumara Disanayake’s recent State visit to Berlin.

“There’s a lot of interest from German companies to collaborate. In the past two years, Sri Lanka has been enormously successful in embarking on a new growth,” pointed out Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) Chief Delegate Martin Klose.

AHK’s parent, the German Chamber of Commerce and Industry (DIHK), was one of the key partners that organised a top-level business forum in Berlin attended by President Disanayake. It was hosted at the DIHK Headquarters and Klose said the message conveyed at the forum was that “Sri Lanka” is now back on the table of German businesses and investors.

“I would say, as a destination for investments and for further trade, this message came across very clearly and very positively,” Klose told the Daily FT in an exclusive interview.

The AHK, which has been in operation in Sri Lanka since 2018, is committed to fair business and offers the ideal platform to create business opportunities for both Sri Lankan and German companies in both directions.

The AHK Sri Lanka is part of the German Chamber Network supported by the Federal Ministry for Economic Affairs and Energy (BMWE). With 150 locations in 93 countries around the world, the members of the German Chamber Network (AHKs) offer their experience, connections, and services to German and companies of the respective partner countries. Together, they support German companies with building up and extending their business relations to foreign countries, representing in total 3.6 million German companies.

Klose said following several business meetings in Berlin, the AHK and the Board of Investment met last week to review the progress and identify follow-up activities to transform leads into fruition.

He emphasised that German companies in Sri Lanka have been longstanding, well-respected, and never left despite challenging periods that Sri Lanka underwent over the years.

Klose pointed out that given global challenges and geopolitics, German companies are increasingly looking at new investment and production destinations as part of a diversification strategy. “South Asia and, in particular, Sri Lanka, are very compelling options for German companies,” he added.

“It would be ideal for Sri Lanka to pre-identify sectors which are most attractive for German investors and companies, ensure proper promotion, and facilitate a fruition of those opportunities,” he said.

In terms of existing German investors, companies, and brands, Klose said there is interest to further expand in Sri Lanka. It was pointed out that Sri Lanka should harness this opportunity by ensuring favourable and consistent policies and their implementation, as well improve ease of doing business.

“I am encouraged by the commitment of the new administration to boost greater German-Sri Lanka investments and trade and collaboration,” Klose pointed out.

Apart from traditional sectors such as apparel, tourism, and spices, he believes in logistics and infrastructure (given Sri Lanka’s strategic location), renewable energy (including hydrogen), energy conservation and efficiency solutions, IT services, innovation and start-up ecosystem, sustainable agriculture and agri-tech, fintech, healthtech etc.

The AHK, as part of its mandate, is primarily focussed on several pillars. One is enhancing skills-certified youth as per German standards; the second pillar is enhancing development of the private sector, especially export-oriented enterprises, via facilitation of participation in trade fairs and missions to and from Germany.