Lanka woos investors for services sector

Sri Lanka now seeks more foreign investments for the services sector and in the post-terrorism growth chapter of the island investment priorities have changed from manufacturing industries to services.

Ajith Nivard Cabraal

Central Bank Governor Ajith Nivard Cabraal, last week invited foreign investors to exploit opportunities in ports, tourism, real estate, financial services and the outsourcing industry.

He was not promoting apparel or other manufacturing industries.Cabraal was addressing an investment forum in Mumbai organised by the Colombo Stock Exchange (CSE) in association with Bloomberg Data Services.

“Sri Lanka is now the fastest growing economy in South Asia. With impressive growth expected in key sectors such as ports, tourism, real estate, financial services and the outsourcing industry, this is the most propitious time for potential investors to capitalise on the business and investment opportunities available in Sri Lanka,” Cabraal said.

Analysts said that investment priorities have shifted from industries to services.

Deputy Minister of Economic Development, Lakshman Yapa Abeywardene in a media interview with a TV channel last week also said that today Sri Lanka cannot attract investments for manufacturing industries and that era of investments is now over.

He said that due to scarcity and the high cost of labour Sri Lanka has lost the comparative advantage in manufacturing industries.

There are thousands of vacancies in manufacturing companies, especially in apparel industries in Free Trade Zones that cannot be filled.

Therefore, Sri Lanka now seeks investments in infrastructure and service industries, the deputy minister said.