Rising east eyes FDI

Monday, 20 January 2014 00:03 - - {{hitsCtrl.values.hits}}

By Shabiya Ali Ahlam Top Government officials of the Eastern Province expressed confidence in the region’s ability to attract US$ 500 million in external inflows that would help contribute to the national Foreign Direct Investment (FDI) target set for 2014. Addressing a full house in Colombo at the first-ever international investment promotion forum for the east, ‘Invest in East,’ Minister of Agriculture, Animal Production and Development, Rural Industries Development, Fisheries and Tourism of the Eastern Province Naseer Ahamed said the region has the necessary capabilities to attract over US$ 500 million worth of FDI in the coming years. “With the investor-friendly regulatory regime that is actively supported by both the Provincial and Central Government, the Eastern Province possesses the highest potential to attract investment. In the short-term, I am confident that if the east is marketed effectively it could contribute at least US$ 200 million in FDI towards the national FDI target of US$ 2.3 billion set for 2014,” he said.

Province geared to attract over US$ 500 m in coming years
Investment forum targets new sectors
Average growth of 19% till 2016

Currently Rs. 195 billion has been invested by the private sector in the province, out of which Rs. 154 billion comprises of FDI. Ahamed expressed these views at the full-day forum which also featured Minister of Economic Development Basil Rajapaksa as Chief Guest, Minister of Investment Promotion Lakshman Yapa Abeywardena as Guest of Honour, and Institute of Policy Studies Executive Director Dr. Saman Kelegama as Keynote Speaker. Given the facelift the region has undergone with the construction of main road networks, bridges, irrigation systems, harbours, fisheries anchorages and the introduction of investment promotion zones, industrial parks and power plants, amongst other transformations, Governor Wijewickrema proudly stated that the Eastern Province was “bracing herself to enter into an era of prosperity and development”. Furthermore, he said it is pertinent to note that any investor would like to pitch a tent in an environment conducive for sustenance of the business, of which some of the ingredients are the peaceful environment, easy access to raw material, convenient disbursement of products, proper infrastructure facilities, and comparatively less cost labour. Provincial GDP of the east which stood at Rs. 143 billion in 2006 has increased to Rs. 474 billion in 2012, recording a growth of 25% for the year 2012. It is expected to rise further to Rs. 787 billion in 2016 averaging a growth of about 19%. According to Wijewickrema, the Eastern Province now ranks at fifth place in terms of provincial contribution to national economy. Meanwhile, 20,000 to 50,000 new employment opportunities are expected to be created. ‘Invest in East,’ held with the objective of putting the region on the global map of investment destinations, served as a platform for the province to flaunt its post-war environment and opportunities. The forum drew a gathering of about 200 local and foreign investors from over 25 countries in addition to the large number of policymakers, decision makers, diplomatic representatives, and representatives of bilateral and multilateral agencies attending the event. The forum aimed at providing a 360 degree view about investing in the region and shed light on areas such as current trade and investment climate in the east, opportunities on offer when investing in the region, project financing, and infrastructure roll-out plan. It discussed at length topics such as the need for FDI in the east, creating an enabling environment for attracting FDIs, investment obstacles, and mitigation strategies.

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