Investor-safety and confidence assured :

Positive environment for investors in Sri Lanka -Minister Lakshman Yapa Abeywardena

By Uditha Kumarasinghe

Investment Promotion Minister Lakshman Yapa Abeywardena said the Government would make use of the opportunity of hosting CHOGM to attract Foreign Direct Investments (FDIs) worth US$ 3 billion within the next three to four years. As the host country for CHOGM, the prime objective of the Government of organising this flagship event was to realise this goal. The Minister in an interview with the Sunday Observer said investment in countries where CHOGM has been hosted have significantly increased following the event. After CHOGM 2011 in Australia, investment increased from US$ 4 billion to US$ 10 billion in four years. Sri Lanka needs to attract this kind of investment within the next four to five years The Minister called on foreign investors to invest in Sri Lanka as investor -safety is guaranteed. “We have maintained a good track record in the apparel sector. Political stability has been restored in Sri Lanka with developed infrastructure facilities and industrial zones.

A positive environment has been created for investors in Sri Lanka. The Commonwealth Business Forum also opened a good opportunity for the Government to educate investors and build investor- confidence”, he said.

Q: Are there any special areas of the economy where the Commonwealth Business Forum is interested in investing?

A: We were prepared for this event. We have identified five major areas of investment such as information technology, tourism, infrastructure, agriculture and education. We have already selected and gained Cabinet approval for 53 investments which comes under these five categories. We have also identified suitable land for these investments and submitted them for Cabinet approval. Cabinet has given approval to acquire these lands. Investors who come to Sri Lanka following CHOGM will not face any problem as the Ministry has made arrangements to provide required facilities for investment. We have set up an information centre at Cinnamon Grand, Hotel Colombo under the title 'Invest in Sri Lanka'. Any investor who visits this centre will be educated and guided about major investment areas. In addition, a one-stop-shop is being operated separately which comprises officials representing all key Government institutions.

Q: What is the magnitude of investment Sri Lanka is anticipating from the Commonwealth Business Forum (CBF)?

A: The investments of the host country of CHOGM have significantly increased after the end of the event. After CHOGM 2011 in Australia, investment increased from US$ 4 billion to US$ 10 billion within four years. Sri Lanka also needs to attract this kind of investment within the next four to five years. Because the Government has spent a huge amount of money to develop infrastructure facilities. To cover up expenditure on infrastructure, more Foreign Direct Investments (FDIs) should be attracted. We got investment worth US$ 1.2 billion last year. If we want to continue eight percent economic growth, at least 35 percent of the total Gross National Income should be for investments. But the local investors can make only 24 percent investment while the Government can make only 7 percent. Therefore, 4 percent FDIs have to be brought into the country to cover up the balance. This 4 percent FDIs amounts nearly US$ 3 billion. We would make use of the opportunity of hosting the CHOGM to go for a target to attract US$ 3 billion worth FDIs within the next three to four years. As the host country, the prime objective of the Government of organising this flagship event is to realise this goal.

Q: Will the CHOGM help Sri Lanka to boost its exports and also provide new technical know-how for a high-tec transfer to improve the quality of local products?

A: The total number of exporters in Sri Lanka are below 400. CHOGM provided the opportunity to local exporters to meet and interact with over 600 foreign investors who participated in CBF. Separate sessions were conducted in connection with CBF held at the Cinnamon Grand, Colombo from November 12 to 14. These sessions were represented by local and foreign exporters. That was a rare opportunity for our exporters to have one- to- one meetings with foreign exporters. The importance of CBF is that the investors of the developed states addressed the forum and shared their experience with the others. I also participated in the CBF session on infrastructure, financing and modelling which discussed ways and means of how to take forward the economy with modern infrastructure development. Most of the investors who participated in CBF were concerned about how to get more benefit from less investment. That is the experience we are getting right now. CHOGM has turned into a forum which shared the experiences of investors in various fields.

Q: How do you assess the overall impact of CHOGM to Sri Lanka in the context of its present development drive?

A: I view this from three aspects. CHOGM would give a clear message to the world on Sri Lanka's image. When I met Scottish Minister for Commonwealth Games and Sport, Shona Robison, she told me that the strategic importance of Sri Lanka as a hub cannot be seen in any other country. She said we have Chinese and Indian markets and we have also signed Free Trade Agreements. What she said was if we make use of this opportunity, we would be able to successfully move forward. However, she said that they did not have a proper understanding about Sri Lanka. she said that they came to know about the importance and the beauty of Sri Lanka after they visited the country. I can understand how Mauritius secured 31st position in the business ranking when we are still in the 80s. Mauritius delegates explained how they took quick decisions on investment after having dialogue with their people. Mauritius has given various tax concessions to investors. Here in Sri Lanka, when the Government attempts to offer some tax concessions to investors, certain sections make a big hue and cry. Countries such as Mauritius even give lands free to investors to commence r business.

Q: Amidst calls to boycott CHOGM 2013, Australia and New Zealand adopted a liberal attitude and decided to attend. Don't you think changes have to be effected to the Commonwealth body to keep abreast of the times?

A: Certainly. The Commonwealth should not be turned into a punitive or judgemental body to make undue pressure to its member states. The member states should pressurise the Commonwealth to pursue its agenda under the Commonwealth Charter. Any Commonwealth member state which participated in CHOGM 2011 held in Australia may not have a specific reason to boycott CHOGM 2013 held in Sri Lanka. Australian Prime Minister Tony Abbott has commended the moves taken by the Government to defeat terrorism. He said Sri Lanka was a very good tourist destination. When Sri Lanka is recognised as a country which has recovered fast and if some countries choose to boycott CHOGM due to the influence of the pro-LTTE diaspora or domestic compulsions, such countries give a different message. The Commonwealth should get that idea as well. I think changes have to be effected to the Commonwealth structure in keeping with present day needs.

As I said earlier, the Commonwealth should not be used as a punitive body to teach lessons to other countries. My view is that non-Commonwealth summits should also be held. Many non-Commonwealth countries also came to Sri Lanka to observe CHOGM. I think a non-Commonwealth summit should also be held in Sri Lanka. Because there was plenty of positive responses from non-Commonwealth countries to invest in Sri Lanka. We could identify shortcomings and obstacles faced by investors when they invest. We should attract these investors to Sri Lanka. Because foreign investors don't face any risk as investor- safety is high.

We have maintained a good track record in the apparel sector as well. At present political stability has been restored with developed infrastructure facilities and industrial zones. A positive environment is created for investors. We call on investors to invest in Sri Lanka. The CBF opened a good opportunity for us to educate investors and build investor- confidence.

Q: Don’t you think President Mahinda Rajapaksa as the next CHOGM Chairperson could make the Commonwealth more receptive to the concerns of emerging African and Asian countries?

A: Definitely. At present many African countries have effectively participated. When looking into certain issues that cropped up and the recent statements made by some African countries, a Leader who will give them a hearing has been elected as the Chairperson of CHOGM. African countries may want to elect their own person for the CHOGM Chairmanship. This would also provide a good opportunity to further strengthen our ties with African countries. In addition, when an Asian becomes the Chairman of CHOGM, it paves the way to further enhance our relationship with all countries in the region.

Q: CHOGM 2013 in Sri Lanka could be the best answer to baseless human rights allegations made by interested parties. Your comments?

A: There are two sides to this. We gave a clear message to foreign journalists who came to Sri Lanka to cover CHOGM in good faith and report the true situation in the country. Three or four foreign journalists have come to Sri Lanka with the intention of embarrassing and discrediting the Government. But it won’t be a problem. This is media freedom whether it is used in a right or wrong manner. However, many foreign journalists who can give impartial coverage have come to Sri Lanka to cover CHOGM. They can see that the prevailing situation in the country is different to the distorted picture projected by a few international media. Foreign journalists also toured to Galle and Hambantota to cover the Commonwealth People’s Forum and Commonwealth Youth Forum. They witnessed Sri Lanka being a peaceful country. That is why President Mahinda Rajapaksa even told British Channel 4 Director Callum Macrae to ask the people whether they faced any human rights issues in Sri Lanka.

Q: Domestic compulsions such as minority votes in many democracies have prevented Heads of Governments taking part in CHOGM. This does not augur well for the future of the Commonwealth and its basic values. Would you like to comment on this?

A: This may go against the core values of the Commonwealth. My opinion is that a Head of a State should have strength to take decisions. If he is subjected to external pressure, the right decision would never come up. The forthcoming election in India may have prevented the Indian Head of State from participating in the CHOGM. In the future, another powerful country may face a similar situation. When Sri Lanka and India are acting like brothers, it is regrettable if India does not maintain bilateral ties with Sri Lanka due to its domestic compulsions. If a powerful country faces a similar situation, consequences may be more complicated. This is not the answer to separatism. After Mavilaru was recaptured from the clutches of terrorists, the President pledged the country that he would commence military operations against terrorists from that particular point. If the President didn’t do so, we would have never ended the war against terrorists. If India dances to the whims and fancies of Tamil Nadu, tomorrow they will have to face more serious consequences. India’s foreign policy should remain unchanged. The decision taken by the Indian Head of State not to participate in CHOGM due to domestic compulsions is not a healthy decision because Sri Lanka is a friendly and close neighbour. When the Tamil Nadu Chief Minister has not provided even basic facilities to her own people, how can they overcome the problems faced by the people in the North of Sri Lanka? It is not in Tamil Nadu, the Government under the leadership of President Mahinda Rajapaksa has done a lot for the people in the North.

Q: How could you justify the issue of a visa to Channel 4 boss Callum Macrae amidst mass protest by several patriotic organisations?

A: I see this from two different angles. If we prevented one foreign journalist from covering CHOGM, we would not be giving a proper message to the world about Sri Lanka. Our objective to host CHOGM was to make use of that opportunity to rebuild the distorted image about Sri Lanka. If Channel 4 journalists were not allowed to come to Sri Lanka, he would have given a wrong impression to the world. But the Government granted permission to and to see the true situation in Sri Lanka.

It is not justifiable to prevent one particular foreign media personnel to come to Sri Lanka. Because this Channel 4 journalist has not been found guilty by any investigation conducted by us. When nearly 500 foreign journalists highlight one aspect and Channel 4 reports a different version, the credibility of Channel 4 is at stake. We should take advantage of the opinion created by the international media.