Attracting FDIs, Govt’s top priority - Swire

“Britain and Sri Lanka cannot afford to be complacent. We’ve had worrying news about stock market falls around the world, the slowdown in China, deep problems in Brazil and in Russia,” Minister of State for Asia at the UK Foreign and Commonwealth Office, and MP to the Council for Business with Britain, Hugo Swire said in Colombo.

Commodity prices have fallen significantly. Oil, which was over $120 a barrel in 2012, dipped below $35 earlier this week.

This is good news for consumers and businessmen in Britain and Sri Lanka, but bad news for the oil and gas industry, worrying creditors who have lent to it, and a big problem for the countries that depend on it, the Minister said.

All this adds to the volatility and a sense of uncertainty in the world. However, the government has sent a very clear message to the international community across the world that it is open for business from all corners of the globe.

“Attracting Foreign Direct Investments is a top priority for the Government as it seeks to strengthen Sri Lanka’s economy and put Sri Lanka in a stronger position to deal with the global challenges,” he said.

“The United Kingdom has much to offer Sri Lanka and we are determined to help, through our Prime Minister’s commitment to a further £6.6 million over the next three years. We want to see all Sri Lankans reaping the benefits of sustainable prosperity, underpinned by a stable and secure country,” Swire said.

Excerpts of his speech:

“The past year has been a very busy one for the High Commission’s Trade and Investment team. With their support, British companies are now competing for around £1 billion in business across a range of sectors.

We are hopeful that many will be successful in a transparent and accountable competitive bidding process. The Lord Mayor of the City of London visited Sri Lanka in May last year. He promoted the City of London as a hub of global financial excellence fostering closer links with the Colombo Stock Exchange.

The UK also continues to be among the top 10 investors in Sri Lanka and around 150 companies in Sri Lanka have a UK affiliation.

On exports, the UK is Sri Lanka’s third largest market, with exports in 2014 growing to a remarkable 36%, over £1 billion. While British exports to Sri Lanka were only £165 million in the same year, we have made reducing that trade gap a priority - and the latest figures show that UK exports to Sri Lanka increased by nearly 50% last year.

A growing area of cooperation between the UK and Sri Lanka - is tackling corruption. This was a key election promise of President Maithripala Sirisena. And answering his request for international assistance, the UK is providing anti-corruption training and anti-bribery expertise to the Sri Lankan authorities.

The elimination of corruption improves business confidence, not only for the existing business community, and also helps make Sri Lanka a destination of choice for new foreign direct investment.

That is good for the UK, and for Sri Lanka - because building prosperity through increasing exports and investments; opening markets; ensuring access to resources; and promoting sustainable global growth is a key element of the UK Government’s long term economic plan - and a cornerstone our foreign policy.

The latest figures released in December show that the UK economy continued to grow strongly, with GDP in Q3 increasing 2.1% a year ago. The unemployment rate fell to 5.2%, the lowest in nearly ten years.

The team at the High Commission will host a multi-sectoral trade mission next month to further bolster our bilateral trading links.

It is clear that the government is serious about delivering on the commitments it had made on accountability and reconciliation.

Addressing problems from the past will create the right conditions for greater prosperity in the future.

It is equally clear that the administration is serious about tackling corruption and attracting the investment it needs to deliver long-term, sustainable growth.The British Government is proud to help in any way it can. I am confident that when I next visit I will hear about more British companies winning business and doing business here. I am in no doubt that this will be thanks, in no small part, to the valuable work of the Council for Business with Britain.

It is almost a year since my last visit and I am struck by how far Sri Lanka has come in that short time. Today, I see a country in which many Sri Lankans, of all ethnicities, can look forward to a brighter future than was imaginable just twelve months ago.

Sri Lanka made important commitments when it co-sponsored a United Nations Human Rights Council (UNHRC) resolution in Geneva last October, which we hope to see implemented ahead of the June 2016 UNHRC.

I have been encouraged and impressed by President Sirisena’s government, his commitment to tackle the legacy of Sri Lanka’s conflict – which has cast a shadow for too many years – and his keenness to restore democracy, underpinned by a stable, secure and integrated country.

I am of the firm view that the prospects for our shared future are indeed bright.And all of us here can help turn those prospects into reality.”