High level ‘Nam push for Lanka investments

Asian Tribune - 25/08/2014

The Government of Vietnam, while unravelling Lankan investment volumes within its borders, signalled on 22 August of its own investment push towards Sri Lanka-and coming from its high levels. “Already 10 Sri Lankan investment projects are in Vietnam. Vietnam investors and businesses too are eager to go out of the country and invest.

I hope the Government of Sri Lanka would create an enabling environment for Vietnamese business and investors” said a keen Pham Binh Minh (the Vietnamese Deputy Prime Minister who is also the Minister of Foreign Affairs of Vietnam) on 21 August in Hanoi.

Deputy PM Binh Minh was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on the afternoon of 21 August at Hanoi’s Foreign Ministry offices located at Ba Dinh. Minister Bathiudeen and his official delegation were making a courtesy call on Deputy PM Binh Minh on the afternoon of 21 August. Joining Minister Bathiudeen at the meeting were RDS Kumararatne (DG-Department of Commerce), Bandula Egodage (Chairman & CEO-EDB) and Ivan Amarasinghe (Sri Lanka’s Ambassador to Vietnam).

“Congratulations on your delegation’s successful visit to Vietnam. I have been informed that the Joint Trade Sub Committee between the two countries is now a reality” said an upbeat Deputy PM Binh Minh, and added:

“Formal relations between our two countries go a long way back to July 1970. Since then we have been able to maintain regular bilateral diplomatic contacts at higher levels. Our modest bilateral trade is now expected to increase to $1B by 2015/’16. It is clear the our current trade levels are far below its real potentials. The responsibility to meet this target now lies with you-Minister Bathiudeen, and on our side, our own Minister of Industry and Trade of Vietnam. In this background I am glad the Sub Committee has been set up. I really hope and keen that we can buy more products from Sri Lanka. I believe that to increase trade and investment, it is time that both countries make bigger progress on the existing double taxation avoidance and bilateral investment treaties. More importantly, I am pleased to say that there are already 10 Sri Lankan investment projects in Vietnam at a cumulative investment level of $ 14 Mn. Vietnam investors and businesses on the other hand, are eager to go out of the country and invest. I am positive that the Government of Sri Lanka would create an enabling environment for Vietnamese business and investors! We look forward to B2B level exchanges. We also look for cooperation on agro sector, a key sector for our economy as well as society, as well as tea sector of Sri Lanka since Sri Lanka being a major tea producer and exporter.”

At present Vietnam ranks as the 40th export destination and the 23rd supplier, accounting for 0.43% of our total exports and 1.06% of our total imports respectively. The total trade between both countries which stood at US dollars 119.5 Million in 2012 increased to US dollars 224.4 Million in 2013 registering a remarkable growth of 88%. Since 2011, Petrovietnam Oil Corporation (PVOil) has supplied to its Sri Lankan partner with petroleum products. In the field of industry, the two countries have concluded a number of important documents, creating a legal framework for further enhanced cooperation activities.

Responding to Deputy PM Binh Minh, Minister Bathiudeen said: “I thank Your Excellency’s interest to enhance trade and investment cooperation with Sri Lanka. In fact, we extend a warm welcome to Vietnamese investors to enter Sri Lanka and yes, our government is ready and extend its fullest support to Vietnamese investors entering to Sri Lanka. Sri Lanka allows 100% ownership to foreign investors’ capital, total profit repatriation and constitutional guarantee for their capital. Sri Lanka’s rubber, light electronics and tourism are sectors of investments that could serve the Vietnamese investors profitably. Our FTAs with India and Pakistan gives access to prospective Vietnamese investors more than 1.2 Bn ready market. We also seek tech know how for agro sector and your investments and technology could be leveraged by our agro sector as well. I totally agree that the time has come for business to business level cooperation between the two countries. We are the globally reputed Pure Ceylon Tea brand and I am happy we got Vietnam market’s attention as well. We also welcome your support our fishery and aquaculture.”

Deputy PM Binh Minh said: “I stress that Vietnam has good expertise in Fisheries and aquaculture, and we are happy to extend our support to enhance your fisheries as well. I shall speak to Vietnamese Minister of Fisheries and Aquaculture about supporting your fisheries.”

Responding, Minister Bathiudeen said: “We thank you for taking the initiative to contact your colleague Minister of Fishery and Aquaculture on our behalf. These new avenues of cooperation further strengthens our historic friendship.”

Both Minister Bathiudeen and Deputy PM Binh Minh stressed of the need for continued dialogues between Sri Lanka and Vietnam.

Toxic toys

It goes without saying that toys are bought with the hope that it may cheer up a child. But what if we’ve been taking this nothing for granted all along. What if you were told that the toy you recently bought is replete with a highly toxic chemical that puts children at great risks?
A laboratory study by the Centre for Science and Environment in India showed that the presence of phthalates, a highly toxic chemical, was present in toys sold in the Indian market.
These toxic chemicals which are not regulated or monitored by the government, puts children inadvertently at risk. Scientific evidence has shown that exposure to phthalates can cause a variety of health problems ranging from asthma to pre-term birth.

Historic Lanka-Vietnam trade link established in Hanoi

Asian Tribune - 22/08/2014

Rishad Bathiudeen (Minister of Industry and Commerce–right) appreciates the souvenir gift from the Minister of Trade and Industry of the Vietnam Vu Huy Hoang (centre) at the Head Quarters of Ministry of Industry and Trade of Vietnam, in Hanoi.

The first ever Sri Lanka Vietnam official trade mechanism went live in Hanoi on 21 August. And the new mechanism, according to the Vietnamese side, is the practical way for bigger trade cooperation in the form of an Agreement.

“Today’s new beginning will open many new opportunities for both countries. I am fully convinced that setting up of a Joint Working Group (JWG) or Joint Trade Sub Committee, would lay a concrete foundation to enhance the existing bilateral trade and economic relations new heights. My Ministry would closely monitor the progress” said n Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) at the Head Quarters of Ministry of Industry and Trade of Vietnam, Hanoi on 21 August.

Minister Bathiudeen, who made an in-depth and lengthy submission, was addressing the opening session of the bilateral discussions to establish the first Joint Trade Sub Committee (JTSC) between the two countries, held at the Head Quarters of Ministry of Industry and Trade of Vietnam, Hoan Kiem District, Hanoi on 21 August.

A six member team led by Minister Bathiudeen is currently in Hanoi for the talks to setup this first official trade mechanism. Along with Minister Bathiudeen in the delegation are RDS Kumararatne (DG-Department of Commerce), and Bandula Egodage (Chairman & CEO-EDB). Also joining the Sri Lankan team is (HE) Ivan Amarasinghe (Sri Lanka’s Ambassador to Vietnam). The seven member Vietnamese official delegation is led by the powerful Minister of Trade and Industry of the Vietnam (HE) Vu Huy Hoang and joined by his top commanders-Nuuyen Phuc Nam (Head of Western Asia Markets), and Qui Hui Son (DG-Vietnam Trade Promotion) as well as Deputy Directors. RDS Kumararatne (DG-Department of Commerce) is leading the technical sessions of the first JTSC in Hanoi.

“We commend and highly appreciate Sri Lanka’s efforts on economic and social development strategies-in that povery alleviation and economic development in the short period after the end of war. We greatly appreciate Lanka’s improvements in Human Development Index rankings, poverty reduction and international economic development as well as policies and direction of Sri Lanka’s economic development strategy under Mahinda Chinthana development framework. Vietnam in fact wants to learn from Sri Lanka about the five hub strategy. These are good lessons for us to apply for the social development of our country as well. Vietnam economy too, similar to Sri Lanka has faced difficulties due to global recession. Despite this Vietnam too managed to reconrd strong GDP growth-in 2013 at 5.32% and in the first seven months of 2014 at 5.5%. Our inflation which was at 6.2% in 2013 fell to a very low 1.45% in the first seven months of 2014! Our total international trade which stood at $ 266 Bn in 2013, expected to rise to $300 Bn. We have managed to bring our poverty household rate to 9% by 2013. Both Sri Lanka and Vietnam have lots of unrealised potential in joint economic cooperation and investments-in that the current trade volumes are modest and not in par with the strong bilateral cooperation that exists between both countries-and there is vast potential for new heights and lets work together. I request Sri Lanka Ministry of Industry and Commerce under Minister Bathiudeen to establish the Joint Sub Committee on Sri Lanka side and work with us. We take note of Sri Lanka’s proposal and engage relevant agencies in Vietnam to for this effort-both sides will continue their exchanges in this regard. The most practical way after establishing the JTSC is to study the possibility of establishing the Preferential Trade Agreement between both countries.”

At the 3rd Meeting of the Joint Commission held in Hanoi in July 2012, an ambitious target was set at for the total value of bilateral trade to reach US$ 01 Billion in the long term, commensurate with the decision taken by the two leaders during the visit of H.E. the President Mahinda Rajapaksa’s to Vietnam in October 2011 to Colombo. At present Vietnam ranks as the 40th export destination and the 23rd supplier, accounting for 0.43% of our total exports and 1.06% of our total imports respectively. The total trade between both countries which stood at US dollars 119.5 Million in 2012 increased to US dollars 224.4 Million in 2013 registering a remarkable growth of 88%. Since 2011, Petrovietnam Oil Corporation (PVOil) has supplied to its Sri Lankan partner with petroleum products. In the field of industry, the two countries have concluded a number of important documents, creating a legal framework for further enhanced cooperation activities. Those documents include: the MOU on Machinery Manufacturing Cooperation between the Ministry of Industry and Trade of Viet Nam and the Ministry of Industry and Commerce of Sri Lanka; the MOU on Oil and Gas Cooperation between the Ministry of Industry and Trade of Viet Nam and Ministry of Industry and Prime Minister’s Secretary Office of Sri Lanka.

“Today’s new beginning will open many new opportunities for both countries” said Minister Bathiudeen, addressing the session, and added: “Sri Lanka being a founder member of the GATT 1994, as well as WTO has been fully committed to liberal and market oriented Economic policies which aimed at achieving greater integration into the world economy. Sri Lanka has been an active participant in the Doha Development Agenda, having tabled, together with other countries, proposals on: technical barriers to trade; geographical indications; labelling of textiles, clothing, footwear, and travel goods; preferences erosion; and trade facilitation. These initiatives and consistency in our economic policies under able leadership of His Excellency Mahinda Rajapaksa, the President of Sri Lanka with his vision for the future under “Mahinda Chinthana” have brought Sri Lanka much closer with the global partners and in particular, with the countries in Asia. “

Sri Lankan Minister said, “The trade objectives within "Mahinda Chintana" also focus on increasing integration of the Sri Lankan economy with global markets. The latest IMF assessment has given a glowing tribute to Sri Lanka’s economic performance. Its July 29th statement says: “Sri Lanka’s economic growth has been one of the fastest among Asia’s developing economies in recent years. After falling to 6.3 percent in 2012, real GDP growth accelerated to 7.3 percent in 2013”. The Free Trade Agreements that Sri Lanka entered into with India (year 2000) and with Pakistan (year 2005) have already become the gateways for the manufacturers and investors in Sri Lanka in accessing the sub-regional market with over 1.6 billion people. Sri Lanka is progressing towards becoming South Asia’s Economic nucleus, through developing 05 hubs namely Aviation, Commercial, Maritime, Energy and Knowledge. In the realm of bilateral relations, Sri Lanka and Vietnam have been enjoying warm and cordial relations over a long period of years and it has been steadily developed based on mutual respect and shared values. In this context, I am pleased to observe that the trade volume between Sri Lanka and Vietnam has been growing at a steady pace in recent years. “

He added, “The total trade between both countries which stood at US dollars 119.5 Million in 2012 increased to US dollars 224.4 Million in 2013 registering a remarkable growth of 88%. These facts signify that there is huge, unrealized trade potential between two countries that we jointly need to exploit. However, there is no mechanism in place between the two countries at the government level, at present, aimed at strengthening existing bilateral trade and commercial relations. I am glad to learn about growth in the Vietnam Economy and in particular the growth in the industrial and high tech sectors. I am also confident that both countries would find many business opportunities which may be complementary to each other. Ton Sinh Thanh, the Vietnamese Ambassador who just returned to your country after his term in Sri Lanka, has been instrumental in further strengthening relations between our two countries. He recently opened a Vietnam Trade Center in Colombo. He is also of the view that possible Free Trade Agreement between the two countries would help to further improve the trade and economic relations. In this context, I am fully convinced that setting up of a Joint Working Group (JWG) or Joint Trade Sub Committee, comprising senior officials from the two countries would lay a concrete foundation to enhance the existing bilateral trade and economic relations new heights. I have no doubts that the deliberations of our technocrats would finalize modalities of the Joint Working Group. My Ministry would closely monitor the progress towards enhanced trade, investment and economic cooperation between our two countries. I am therefore, confident that we may jointly be able to create a trade facilitating environment towards this objective.”

Sri Lanka to increase trade and investment with China

China.org.cn

Sri Lanka will focus on increasing trade and investment with China as well as broadening the scope of a proposed Free Trade Agreement (FTA), a top official said on Tuesday.

Sri Lankan Investment Promotion Minister Lakshman Yapa Abeywardene made the remarks during an interview with reporters.

He said relations between Sri Lanka and China have leapfrogged since 2008 with around 5 billion U.S. dollars in infrastructure loans being given to the Sri Lanka government by China for various massive projects including ports, airport, highways and railroads.

‘A strong national budget will bring macro economic security’

Daily News - 20/08/2014

The following is the continuation of Treasure Secretary Dr. J. B. Jayasundera's address to the Defence Seminar.

This scale of economic growth depends on the level of investments, productivity, improvements in the policy environment and the institutional setup to do business efficiently, application of research, technology and innovation, macro economic stability, national security and law and order. It is a much more challenging task than the previous two five – year phases, similar to an airplane that takes off on a long-haul flight, where the year 2020 will only be a stop-over destination.

Lanka export acceleration push begins

Daily FT - 20/08/2014

• Be passionate about your exports!: ITC Geneva
• Leverage Lanka’s global brand ranking for exports: Rishad
• Strategy making for 2015-2020 acceleration begins
• EDB in WTO benchmark: Rishad
• Happy about ITC support: EDB’s Egodage

Exports, the lifeline of Sri Lankan economy, are a national priority. The urgency of the exports accelerating strategy is such that it could kick-start even before its full design cycle is over. Meanwhile, brand Sri Lanka packs hidden potentials that could be leveraged for national export growth.

“At the end of the day the buck lands at somebody’s desk. Who is ultimately responsible? We can start implementing the export acceleration strategy while it is being designed and before it’s totally finalised. We may not need to wait until it is fully endorsed,” said ITC Chief of Export Strategy Anton Said on 13 August in Colombo, addressing the launch of the EDB’s National Export Strategising Initiative.

The Export Development Board (EDB), the national trade promotion organisation specially vested with the responsibility for promotion and development of exports, is embarking on formulating the 2015-2020 National Export Strategy (NES) to achieve the $ 20 b export target by 2020 as set out in the ‘Mahinda Chinthana’.

The formulation of the 2015-2020 NES is being carried out with technical assistance from International Trade Centre (ITC) Geneva and in consultation with the public and private sector stakeholders. NES formulation is also a statutory requirement under the Export Development Act No. 40 of 1979.
Geneva’s ITC is a subsidiary of the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD), providing trade-related specialised technical assistance to exports of various economies, especially transition economies. ITC is no stranger to Sri Lanka; in 2010, ITC implemented a business survey in Sri Lanka in collaboration with Lanka Market Research Bureau Ltd. (LMRB).

Also taking part in the National Export Strategy formulation session at EDB were representatives from the export community, various chambers, EDB officials and top Government officials from many line agencies connected to exports.

Addressing the session, Minister of Industry and Commerce Rishad Bathiudeen said the export strategy effort is being carried out with valuable technical assistance from ITC and in consultation with the public and private sector stakeholders.

“As global markets are increasingly separating to groups of mature markets and emerging markets as well as consumer markets become more demanding, we need to change our export strategies as well. In fact I have been given to understand that in International Trade Centre’s global assessment on Trade Promotional Organisations, the ITC recently indicated our EDB is on par with some of the export agencies of highly-developed economies. ITC revealed that EDB is now an ITC benchmark for the first time. This is encouraging news in our efforts to achieve $ 20 b exports by 2020 under the committed vision of President Mahinda Rajapaksa. Thanks to our committed exporters and the vision of the President, today we are able to see a five-year high in first half exports for 2014 at $ 5.4 b. This is a huge increase of 45.9% from 2010’s first half exports of $ 3.7 b.”

Bathiudeen asserted there is no doubt that both ‘country branding’ and ‘export strategy’ always go hand in hand. “To this end also there is good news for Sri Lanka exports.  It is that Sri Lanka in its first effort entered at 67th rank in the Country Brand Index of Future Brands. Out of 118 countries surveyed Sri Lanka emerged at 67. Immediately above us is China at rank 66 while Vietnam ranked below us at 69 and Poland at 75. Despite the export successes of these countries, Sri Lanka still has a stronger ranking. What this shows is Sri Lanka’s hidden market potential and it is time we leverage it for our export development.  For us to leverage these international developments to our export growth, we need to take viable steps. What should be stressed is that today’s strategy effort enables our exports sector to draw in private and public sector partnerships. This is fundamental in our approach to national export strategy development, implementation and also the achievement of $ 20 b by 2020. Today’s National Export Strategy session is an important step in accelerating exports, and not just a mere fulfilment of the requirements stipulated in the Export Development Act No. 40 of 1979.”

ITC Chief of Export Strategy Said, addressing the session, said: “In 10 years the world has changed. Export acceleration strategy is the process and the realism needs to be apparent in the final product. ITC’s mission is to enable developing economies and transition economies’ export success in the global economy. In the last 12 years we have developed over 50 strategies in 40 countries, and therefore we have lots of experiences in this business. A national export document can provide a direction and a blueprint which if followed can lead to success.”

ITC’s approach to national strategy design and implementation is based on two fundamental objectives – to enhance international competiveness of enterprises and export orientation. Asserting that export enterprises do not exist in a vacuum, Said noted that export competitiveness is defined as cross cutting issues and constraints affecting multiple sectors – for example, quality.

“The growth momentum needs to be acceptable to all players winning their confidence, including development partners. All institutions and ministries that define export success are part of this initiative. Prioritisation is an important challenge. We need to ensure that the established systems, structures, mechanisms of the country are effective; they need to be functional at policy level as well as operational level so that export momentum is sustained and accelerated. This initiative has to work through existing organisations and many Lankan initiatives such as hub strategy and ‘Unstoppable Sri Lanka,’ etc. Therefore our point of departure is using existing national strategies and to build on them.”

“At the end of the day the buck lands at somebody’s desk. Who is ultimately responsible? We can start implementing the export acceleration strategy while it is being designed and before it’s totally finalised. We may not need to wait until it is fully endorsed,” said ITC Chief of Export Strategy Anton Said on 13 August in Colombo, addressing the launch of the EDB’s National Export Strategising Initiative.

The ITC Chief of Export Strategy emphasised that the success of exports depends on the aggregate institutional network: “We may not need to wait until the export acceleration strategy is fully endorsed since we may know what the targets are, parties are and priorities are. After this we can move on to a detailed design. At that stage the principle sectors identified by the strategy will have their own detailed sub strategies in relevant areas such as trade financing, branding, quality management, trade promotion, packaging, etc.

 The Consolidated National Export Strategy document will have an implementation management framework with measurements to track progress. ITC will partner in this acceleration effort, help you to make the transition, and we are available as much you need us. This is both a top down and bottom up approach. We want you to be passionate about your export strategy. Having a strategy is a huge milestone but not the end.”
EDB Chairman and CEO Bandula Egodage addressing the event said: “Our exports are growing rapidly thanks to you, our exporters. Export revenues are at 20% of our GDP and we are confident that we can achieve the $ 20 b goal by 2020. This is due to the clear framework of the ‘Mahinda Chinthana,’ the visionary leadership of President Mahinda Rajapaksa, the strategic economic controls of P.B. Jayasundera, the well-supported economic development of Economic Development Minister Basil Rajapaksa and the committed leadership and guidance of Minister of Industry and Commerce Rishad Bathiudeen, Deputy Minister of Industry and Commerce Lakshman Wasantha Perera and our Ministry Secretary Anura Siriwardene. The reason we need an export strategy is that with limited resources, we may have to prioritise to further develop and accelerate it. Also it’s a statutory requirement and we need to have a microscopic view. We are fortunate to have ITC supporting us.”

First hand Syrian account reveals Lanka a destination beyond Gulf

Asian Tribune - 18/08/2014

Rishad Bathiudeen (Minister of Industry and Commerce–left) discusses with Dr Mhd. Moussallam Al Droubi (CEO of Al Droubi Group and the Hon Consul of Sri Lanka in Damascus, Syria) in Colombo on 13 August.

For the first time, Syrian investors' view on trading and investing in Sri Lanka has been revealed in a first-hand account on 13 August in Colombo. And the cash rich Syrians want to set up active projects first, rather than sending a stream of hot funds.

“As countries, Gulf economies are richer than Syria but when it comes to individual countries’ private capital volumes, everyone knows that Syrians are way ahead and much more liquid than private capital in Gulf region. The main issue now is that the Syrian industrial community is on the lookout for an investment hub due to the current unrest in Syria. There are a few keen big investors who are studying Sri Lanka closely” said an upbeat Dr Mhd. Moussallam Al Droubi (CEO of Al Droubi Group and the Hon Consul of Sri Lanka in Damascus, Syria) on 13 August in Colombo.

Al Droubi CEO Dr Mhd. Moussallam was speaking to Rishad Bathiudeen (Minister of Industry and Commerce) on 13 August at the Ministry of Industry and Commerce, Colombo 3. Al Droubi CEO Dr Mhd. Moussallam was making a courtesy call on Minister Bathiudeen on the afternoon of 13 August.

“Once Syria recovers from the current problems, our bilateral cooperation could be resumed in better shape. The main issue now is that the Syrian industrial community is on the lookout for an investment hub due to the current unrest in Syria. I am looking forward to bring a Syrian business and investment delegation to Sri Lanka in the coming months to explore investment opportunities in Sri Lanka” said Al Droubi CEO Dr Mhd. Moussallam.

He added: “Sri Lanka’s wonderful investment environment is an invitation to them. Most of large scale Syrian industrialists and investors are not necessarily and specially looking at Sri Lanka but they are looking at Asia as a whole. But there are a few keen big investors who are studying Sri Lanka closely. They are some diversified conglomerates including my Al Droubi group as well as investors in such sectors as tourism / hoteliers, chemicals, multi cycle power projects, cables and textiles. My Aldroubi Group itself in turn is representing such multinationals as Saudi Cable, South Korean conglomerate Hyosung Corp, India’s Jindal, the Greece metal firm METKA, China’s global power transmission giant Zhejian HOLLEY, and also Italy’s Gruppo Aturia. We, the Al Groubi, have the biggest cable factory in Syria and other international projects in UK, China, Greece and Korea. About 70% of high end Syrian industries have shifted their investments out of Syria due to the current conflict-though small businesses and sectors still continue there. These shifting industrialists and investors are not mere safe haven seekers busily fleeing Damascus and Aleppo-in fact they are high end investors with critical knowhow in their heavy industry sectors that will benefit the Sri Lankan Industry base! “

Al Droubi CEO Dr Mhd. Moussallam also said, “What many do not know is that Syrian investors have more cash and funds than Gulf region investors. As countries, Gulf economies are richer than Syria but when it comes to individual countries’ private capital volumes, everyone knows that Syrians are way ahead and much more liquid than private capital in Gulf Region (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates). But remember-when investing overseas, Syrian private capital’s priority is to bring the manufacturing project setup and knowhow rather than immediate cash at first. In fact, Syrian investors already have checked out the Gulf countries and even Egypt. They rarely venture out of Gulf region. This is the first time that they are looking at outside the region, and at Sri Lanka specifically. In Lebanese banks alone funds of Syrian business origin to the tune of $14 Bn are ready and waiting at this moment to flow to the correct investment opportunity in any international market-including Sri Lanka. Many high rise buildings in Lebanon’s Beirut Central District are occupied and rented by none-other than Syrian businesses. A building construction boom in Lebanese real estate sector is partly fuelled by Syrian investments. These funds may not be directly injected here immediately but would come as BOO (Build Own Operate) projects. Since they come as total BOOs, the specialized infrastructure would be totally shipped in and that free flow of specialized knowhow is Sri Lanka’s key gain. "

"The money would follow after this initial infrastructure transfer as and when needed. Syrian businesses and investors are successful professional investors with a track record and they have long standing investments spanning Gulf, even Egypt and Morocco. For centuries Syrians have been known to be good traders, and creative industrialists. For example 55 pharmaceutical factories in Syria are exporting to 85 countries- among them are demanding markets such as Saudi Arabia. Pharma is not an easy industry and not easy to export-its very complicated specially in quality.”

He further added, “ But Syrian pharma is very active and thriving facing all these challenges! And our textile industry is historically reputed with parts of British Queen’s and Princess Diana’s wardrobe material always originating from Syria. Due to the on-going war, the Syrians are looking for new destinations to continue to produce these renowned Syrian brands elsewhere and this is a good opportunity for Sri Lanka to be a part of the supply chain of such historic Syrian industries and draw in their investments. If suitable projects are found for them here and they are satisfied of the incentives, then they would be entering. My goal is to bring many successful Syrian global investors-not only my Group. If Syrian investments are coming here, then you could expect the bulk originating from Lebanon as I just said-these are clean investor monies with clear and direct legal sources of origin. More importantly, if my Al Droubi or any Syrian investors come here it will be the first time that Syrian investors would positively go beyond the Gulf region! But you need to show good reason as to why they should be entering here in addition to 100% investment ownership and total profit repatriation benefits offered by Sri Lanka. The Damascus investors looking at Sri Lanka told me that they need to be clearly informed as to what they will specifically be entitled to if they invest here.”

Minister Bathiudeen said: “Our government and all people of Sri Lanka too wish that the issues in Syria would be peacefully resolved. We welcome Syrian investors to Sri Lanka and thanks to HE the President Mahinda Rajapaksa’s committed vision we expect a GDP growth of 7.8% which is positively taken by global investors. And global investors can avail themselves of such benefits as not only the freedom of total investment ownership, but even profit repatriation and constitutional protection for their investments. Syrian BOO projects can strengthen our industrial base considerably. Our industries would specially welcome transfer of global experience and knowhow to them.”

Discussing bilateral trade cooperation Al Droubi CEO Dr Mhd. Moussallam said: “To quickly restore bilateral trade beyond the current $ 97 Mn, we need to refresh the regular Ceylon Tea import quantities to Syria again. Also promotion of other Lankan value added exports to Syria is an important step in this. Once Syria recovers from the current problems, our trade could resume.” According to the Department of Commerce of Sri Lanka, bilateral trade with Syria stood at $97.23 Mn, of which almost the total was claimed by Lanka’s exports to Syria while imports were only $0.54 Mn. In 2013, Ceylon Tea exports to Syria stood at $ 94 Mn-taking 97% of exports revenue.