'SL needs consistency in policy and tax administration'

Korean Ambassador tells National Chamber:

By Lalin Fernandopulle

Sri Lanka has a chance to charter a new course of development following the silent revolution launched last year and the country should not miss this opportunity, Korean Ambassador Won Sam Chang told a National Chamber of Commerce of Sri Lanka (NCCSL) seminar last week.

"I cannot see why Sri Lanka cannot achieve the miracle Korea brought about over a period of 60 years after a devastating war in the 1950s. The Korean miracle would not have taken place if not for farsighted leadership and commitment of its people. Education, strong political leadership, people's will and determination are vital to achieve economic growth," Chang said.

Korea emerged from the ashes to be a global super power ranked the 14th largest economy in the world today. Technological transition and innovation enabled it to achieve rapid economic growth and be a vibrant economy in the South East Asian region.

Chang said Korea made enormous sacrifices for the education of its people after the war and it has paid rich dividends.

The people of Korea reap the benefits of hard work, unity and sound leadership. "There is no free meal. Sri Lanka needs consistency in policy and tax administration to attract foreign investors who are keen but still feel the country is not stable."

Around 27,000 Sri Lankans work in South Korea and nearly 53 Korean companies conduct businesses in Sri Lanka. Korea offers Sri Lanka a quota of 5,000 jobs annually. Korean assistance to Sri Lanka comes from Korea International Cooperation Agency (KOICA), Korea Trade Promotion Corporation, Korea Exim Bank and Korean Project of International Agriculture (KOPIA).

Trade between the two countries was around US$ 370 million in 2015 and there is much potential for growth.

Chang said there will be some major investments from Korea to Sri Lanka soon.

NCCSL President Thilak Godamanna said there are ample opportunities for trade and investment development between Sri Lanka and Korea which is an economic giant in the Asian region. Sri Lanka is no more considered a middle income country by Korea to grant trade concessions.

Korea has been one of the most important sources of foreign direct investment to Sri Lanka.

Textile and apparel, railway infrastructure, housing and property are some of the main sectors in which the South Korea has invested in Sri Lanka. Such investments have contributed towards expansion of manufacturing activity and employment generation.

Sri Lanka exports coconut fibre, articles of apparel clothing, gloves, activated carbon and aluminum and imports petroleum oils and oils obtained from bituminous minerals, other than crude, Iron and Steel, Knitted or crocheted fabrics and machinery from South Korea.