Pakistan targets investments worth $ 240 m in Lanka

Sri Lanka's second largest trade partner in SAARC, aims at investing in the heavy industry sectors here and has earmarked an investment quantum destined for Sri Lanka.

"Pakistani investors prefer Sri Lanka due to logistics and infrastructure facilities. We are now ready with $ 240 million for investment in Sri Lanka" said President of Pakistan-Sri Lanka Business Forum (PSLBF), Tarek M. Khan when he met Industry and Commerce Minister Rishad Bathiudeen at the Ministry in Kollupitiya.

Khan was in Sri Lanka to attend CHOGM events with top members of the PSLBF.

Director, PSLBF and CEO, Ijara Holdings, Farrukh Ansari was also present.

From 2005 to the third quarter of 2013, FDI from Pakistan to Sri Lanka stood at $ 7.5 million (cumulative) across 15 investment projects. Pakistan is Sri Lanka's second largest trading partner in the SAARC region after India.

A substantial growth in bilateral trade has been seen in exports and imports, after the Free Trade Agreement between the two countries was implemented in 2005. The value of trade between the two countries has increased from US $ 158 million in 2005 to US $. 433.69 million in 2012.

"The sectors we plan to enter immediately are glass, healthcare (across total value chain), tourism, steel and power and energy. Pakistani investors prefer Sri Lanka due to logistics and infrastructure facilities," Khan said.

"I represent global pharmaceutical giant Merck of the US, which had sales revenue of $ 14.5 billion in 2012. "I plan to enter Sri Lanka in healthcare and tourism sectors, is in addition to the earmarked $ 240 million, to do full cycle manufacturing here," he said.

"Pharmaceuticals manufactured in Sri Lanka cannot gain much by selling only to the local market.

"Bigger incomes can be gained by exporting. Sri Lanka's power and labour are cheaper than in Pakistan, which is another reason to invest here," Khan said.

"We can also invest in local hospitals and upgrade them," he said.

Minister Bathiudeen said, "Pakistan already has $ 7.5 million in FDI in Sri Lanka and there is much potential to increase this. We will extend our fullest support and whenever you need it. "