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| Sunday, 28 September 2003 |
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More Danish assistance to Sri Lanka The Sri Lankan economy is presently in a strong position with increased tourist arrivals and Foreign Direct Investment (FDI) coming into the country. "I will not be surprised even if the growth rate increases to six per cent," said Peter Harrold, Country Director World Bank. He made these comments at a seminar titled 'Danish Days in Sri Lanka' for a 28-member delegation led by Ambassador for Denmark in Sri Lanka and India Michael Sternberg. The delegation was in Sri Lanka to explore possibilities of investment and cooperation between the two countries. Harrold said the Government policy document 'Regaining Sri Lanka' presents a friendly framework for the private sector while the peaceful situation in the North-East, increased growth, reduced inflation and the economy getting back to the path of progress from what it was six/seven years ago have created a perfect situation to receive FDI. The economy will have more good news with the onset of peace in the country. "If peace comes, the North-East will be the biggest beneficiary as a lot of reconstruction and repairs have to be done in the sectors of roads, power, hospitals as well as infrastructure, said Harrold. Ambassador Sternberg said there has been a long and proud tradition of collaboration between Denmark and Sri Lanka and the peace process has strengthened and widened these ties. "Earlier this year, we signed two bilateral agreements worth $60 million, one for the Danish Mixed Credit Assistance and the other for Development Cooperation. Both agreements demonstrate our desire to work together towards lasting peace and a prosperous Sri Lanka. We are already working on launching a number of infrastructure and dairy projects through Danish assistance while a number of other projects are under active consideration," he said. In March 2002, Sternberg led a large Danish business delegation to Colombo for the first 'Danish Days in Sri Lanka'. The delegation comprised 27 firms from diverse business sectors. "I was then convinced that the event would be a turning point in our commercial relations, giving impetus to sustained growth in trade and investment between Denmark and Sri Lanka in the years to come," he said. Some of the firms which came last year have developed strong ties with local firms and organisations. Their effort this time is to try and build long-lasting structures on the foundations they have established. The objective of the delegates who are visiting for the first time is to develop new ties or strengthen those already established through their individual efforts. Minister of Enterprise Development, Industrial Policy and Investment Promotion Professor G.L. Peiris said the country can divert the resources saved through low defence expenditure for development projects such as power generation and road development. Peace coupled with political and economic stability have opened up opportunities in all parts of the country while FDI has increased threefold during the past year. "We are looking at wind power as an alternative source of energy as we are presently over-dependent on hydro power. Dairy development too is a prime concern for the well-being of the agriculture sector. The Oluvil Port project and Greater Colombo sewerage project are receiving Danish support," he said. Prof Peiris said Denmark will open a liaison office in Sri Lanka in the near future. He said one billion US dollars from the money pledged at the donor conference in Tokyo will be received by the country before the end of the year. (SG) |
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