Lankan and Korean SME entrepreneurs to set up export oriented ventures

by L. S. A. Wedaarachchi

Korean SME entrepreneurs will join hands with their Sri Lankan SME counterparts to set up export oriented ventures in Sri Lanka.

The preliminary discussions in this regard were held in Seoul recently. The officials and the delegates representing the Korea Chamber of Commerce and Investments, Korea Importers Association (KOIMA) Board of Investments of Sri Lanka (BOI), Korea Sri Lanka Economic Corporation Committee and a team of leading Sri Lankan businessmen attended these discussions.

A special attempt was made to establish a link between foreign and local SME chambers and SME entrepreneurs by the BOI during the past few months. The BOI strongly believes that such a business collaboration will be able to solve market and technology problems faced by Sri Lankans in the SME sector.

BOI Chairman and Director General Prof Lakshman R. Watawala said that a stimulating interest was shown by Korean SME entrepreneurs during the investment promotion meetings and one to one business meetings in Seoul. Fifty Korean companies belonging to IT, construction, infrastructure development and services sectors attended the meetings.

Keangnam, a leading Korean investor in Sri Lanka gave an exclusive introduction specially to the Korean SME sector and in general to prospective Korean investors regarding the facilities available in Sri Lanka for investors.

According to Prof. Watawala prospective Korean investors were highly impressed by the Indo Sri Lanka Free Trade Agreement. They have expressed their willingness to manufacture various components for Korean companies which operate in India and thereby get the maximum benefits of the Indo Lanka Free Trade Agreement.

At present most of the leading Korean and Japanese manufacturing companies have their production plants in various parts of India.

They get down their main requairments and components from their principal suppliers in their countries as well as from neighbouring countries such as Thailand, Indonesia and Malaysia. According to BOI Chairman, one of the main targets of the Korean visit was to impress the SME sector in Korea.

After the series of discussions the BOI signed a Memorandum of Understanding (MoU) with the Korean small business Corporation to promote Korean small and medium sector investors to come to Sri Lanka.

A Sri Lankan official has already left for Korea to offer investment opportunities and the relevant details to the prospective Korean SME investors.

The identified investment areas for Korean-Sri Lanka joint ventures are manufacturing plants for electrical components and appliances, Fabric industry materials and automotive components.

The Korean SME entrepreneurs expressed their willingness to manufacture the components for Korean companies operating in India and get the maximum benefits of the Sri Lanka-India Free Trade Agreement.

They were also impressed by the Sri Lankan quality of manpower. At present most of the leading world manufacturers have their manufacturing plants in India.

The BOI strongly believes that Sri Lanka can act as a leading component manufacturer and supplier for India.

The Korean Haihundai auto plant in India has already expressed its willingness for such an agreement.

The Auto filter manufacturing Korean plant has agreed to set up a plant here and export them to India, Pakistan and Europe.

The facilities enjoyed by Sri Lanka in terms of exports to the European Union countries impressed the Korean investors. The Ceramic world had expressed its willingness to expand the existing facilities in Sri Lanka and produce new ceramic-ware to the European market.