Israel upbeat on investing in Sri Lanka

A high-level business delegation from Israel has shown keen interest in investing in various sectors in Sri Lanka, a Board of Investment of Sri Lanka (BOI) official said.

He said that the delegation is pleased with the pace of development in the country which is conducive for businesses. The delegation consisting of 18 entrepreneurs was hosted by the BOI recently.

“This visit was timely since there has been considerable growth in bilateral economic relations between Sri Lanka and Israel with trade doubling to US $ 158.35 million last year,” the BOI official said.

The delegation consisting of around 25 delegates from diverse sectors such as real estate, residential, commerce, insurance, legal services, transportation, aviation and maritime services, agriculture, dairy, tourism, high-tech industry, defence, telecommunication, cosmetics, food and value chain, insurance and water management, is exploring the scope for collaboration between the two countries.

The Chairman of the Board of Investment of Sri Lanka, Dr Lakshman Jayaweera briefed the delegation on investment opportunities in Sri Lanka and on the country’s improved business climate.

The Israeli delegation was led by Vice President of the Israel–Asia Chamber of Commerce and Chairperson of the Israel-Sri Lanka Chamber of Commerce, Ms Anat Bernstein-Reich.

The Sri Lanka side comprised BOI, Chairman, Dr Lakshman Jayaweera, Executive Director (Investment), Duminda Ariyasinghe, Director (Media and Publicity), Dilip Samarasinghe, Director (Secretariat), Ms Renuka Weerakone, Senior Deputy Director (Investment), Ms Vijitha Mathuratne and Deputy Director (Marketing), EDB, Ms Chandra Kiriella.

The delegation expressed their interest in investing in the country to engage in trade with third countries, with which Sri Lanka has signed Free Trade Agreements. Currently Sri Lanka has FTAs with India and Pakistan.

In addition, since Sri Lanka has recently introduced entrepot trade, which will allow the storage of goods at the Hambantota Port, Israeli companies were studying the possibility of using that facility to re-export to other markets.

One area of interest was re-exporting goods after packaging in Sri Lanka.

One such company is Schneor Seed involved in the large-scale production and supply of tomato seeds to the East Asian market. These seeds are used for the production of tomatoes used in fast foods, such as hamburgers. Currently, there are a small number of Israeli companies that have invested in Sri Lanka under the BOI. These include Diamond Cutters Ltd which has been operating for more than a decade.

Diamond Cutters is engaged in the cutting and polishing of diamonds in Sri Lanka. The gems are then re-exported to Israel. Some of these diamonds are used by the high-end wristwatch industry. The company employs 900 workers in Sri Lanka and has contributed to making Sri Lanka a centre for the diamond industry.

Another company exports tuna fish from Sri Lanka to Israel and to Europe. The company is also promoting tourism from Israel and Russia to Sri Lanka. Yet another area which the delegation expressed interest in, was breeding of livestock, particularly poultry farming. A spokesman for the delegation said they were pleased with the outcome of their visit and were confident that it would lead to greater investment and economic co-operation between Sri Lanka and Israel.