Netherlands inks deal with BOI

By Naalir Jamaldeen

The Board of Investment (BOI) signed an agreement with Netherlands investors who are to invest in six sectors including agriculture, power, banking and ship building, BOI Chairman, Dr. Lakshman Jayaweera said.

The sixteen-member business delegation consisting of a film crew and leading business personnel in the Netherlands was led by Sri Lankan Ambassador in the Netherlands, Buddhi K. Athauda.

The delegation which is due to visit various parts of the country to explore the possibility of investing more in Sri Lanka, the Chairman said. “Political stability and the peaceful atmosphere in the country has made Sri Lanka a favourable destination for foreign investments,” Dr. Jayaweera said.

He said that Sri Lanka has a skilled workforce. The people in the North and the East will also be made stakeholders of ongoing development. Plans are afoot to take a large number of foreign investments across the country including the North and the East.

The film crew hopes to film business and industrial sector development and ongoing livelihood and infrastructure development projects across the country.

The film will be telecast over Dutch channels, according to Dr. Jayaweera.

Dr. Jayaweera expressed confidence that more business delegations from the Netherlands will arrive in Sri Lanka soon. Sri Lankan Ambassador in the Netherlands, Buddhi K. Athauda said that the present peaceful situation has made foreign investors keen on investing in Sri Lanka in diverse sectors. The Netherlands investors have also focussed attention on investing in the gem and jewellery sector.

He said that the North Central province is suitable for dairy farms as there is a conducive environment to grow grass.

“They will focus on producing vegetables, milk, cheese and butter as by-products, and will export the excess milk to countries in the region,” the Sri Lankan Ambassador said.

He said that if the BOI provided the facilities the investors could even produce milk powder. According to the BOI, 30 Netherlands investment projects worth $ 437 million are in operation in Sri Lanka. These projects have been functioning since 1978. Among the well-known Dutch brands operating in Sri Lanka are Holcim (cement) and Northwest Fisheries.

According to the Department of Commerce, Sri Lanka’s total trade with the Netherlands had fluctuated during the past 14 years but the balance of trade has continuously been in favour of Sri Lanka recording the highest value of US $ 303.6 million in 2010.

In 2012, bilateral trade between the two countries stood at $ 237.5 million.

Tobacco, tea, fish products, solid rubber tyres, coconut products were Sri Lanka’s leading exports to the Netherlands which totalled $ 158.6 million in 2012 while the country imported chocolates, orthopaedic appliances, ethyl alcohol, medicaments, tubes, pipes and hoses, and fittings from the Netherlands last year.