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by Jayampathy Jayasinghe

There is tremendous potential for Sri Lankan businessmen in Madagascar in the field of gemming, fisheries, Eco-Tourism and the garment industry. Its vast natural resources have been unexploited so far.

Madagascar's Honorary Consul in Sri Lanka, B.A. Mahipala told the Sunday Observer that Madagascar is rich with natural resources such as precious gems, agricultural produce and the world's best vanilla. "Only a few people have ventured into the gem industry in Madagascar as they do not have any knowledge about the country."

Mahipala said that there is huge potential for those engaged in gemming. There are over 1,000 Sri Lankans in Madagascar engaged in gemming along with the natives. Sri Lankans can earn much needed foreign exchange by exporting value added gems. Even International soft drink giants purchase vanilla found in Madagascar.

Mahipala has functioned as Honorary Consul in Sri Lanka for almost three years promoting bi-lateral trade between the two countries.

A recent survey revealed that many Sri Lankans visit Madagascar to purchase rough uncut stones. The stones are thereafter taken either to Thailand or brought to Sri Lanaka for cutting and polishing purposes. Once the stones are cut and polished they are exported or sold to foreign buyers for a huge profit. Enormous profits are made after adding value to gem stones.

Mahipala said the government's decision during the last budget to clamp down a tax on the import of uncut stones has deprived the country of much needed foreign exchange. Many gem dealers take away uncut gems to Thailand for cut and polishing purposes to avoid taxes in Sri Lanka. However, due to pressure by several trade chambers, the tax component was waived after much agitation.

Referring to power projects, he said that a Sri Lankan company is almost successful in clinching a deal there while a Sri Lankan insurance company is lobbying to set up business there.

According to Mahipala around 150 visas are issued to Sri Lankans every month to proceed to Madagascar. But a few Sri Lankans have created problems by overstaying their visas in Madagascar. Some had even tarnished Sri Lanka's image by attempting to go to Western countries after overstaying their visas.

Sri Lanka and Madagascar have maintained a cordial relationship. The Sri Lankan government recently appointed an Ambassador to Madagascar who is currently based in Cape Town. It is a cosmopolitan country with descendents of Chinese, Indian, Malaysian, and Indonesian population along with the natives.

Madagascar, formerly a French colony won independence in 1960. French is the country's second language. Madagascar's national carrier is Air Madagascar. There aren't any direct flights connecting Colombo to Madagascar. Mahipala has already had discussions with Air Madagascar for a feasibility study on introducing a direct flight to Colombo.

Mahipala said there are tremendous opportunities for Sri Lankan businessmen to set up garment factories and supermarkets in Madagascar.

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