India told Sri Lanka should be its preferred partner

Sri Lanka recently made a fresh push to woo Indian interest for investments, trade and tourism when a large contingent attended the CII Partnership Summit and connected events in Gurgaon in the Harayana state.

To better inform Indian corporates participating at the two-day Summit, Sri Lanka held a luncheon session on the first day. This session saw brief presentations by Minister of Investment Promotion and Enterprise Development Dr. Sarath Amunugama and Minister of International Trade and Export Development Prof. G.L. Peiris, Ceylon Chamber of Commerce Chairman Mahen Dayananda and BOI Deputy Director General Investment Promotion Duminda Ariyaratne.

In his welcome remarks Analjit Singh, Co-Chairman Partnership Summit and Chairman Max India Ltd. dwelt on the growing Indo-Sri Lankan economic cooperation and pointed out that Sri Lanka had always been a priority destination for Indian investments in South Asia. Indian business was keen to explore enhanced areas of partnership further, he remarked.

To put the importance of strong bilateral relations in context, Minister Amunugama said that India was Sri Lanka’s preferred partner. “We are not only lovers of India but also followers of one of India’s greatest sons, the Lord Buddha,” the minister said. A case in point was the granting of visa on arrival for Indians by Sri Lanka. “Indo Lanka ties have remained as strong as ever and it could only grow to become much stronger in the future,” he added.

He said that all major Indian companies have interests in Sri Lanka and more should seriously consider the potential for investment and joint venture as well as greater trade in Sri Lanka. “It is important both Sri Lankan and Indian companies build upon the strong political and cultural ties the two countries share,” he added.

Prof Peiris spoke on the landmark Indo-Lanka Free Trade Agreement which has bolstered bilateral trade to top the US$ 2 billion mark. “We are further stimulating greater bilateral ties with finalisation of the Comprehensive Economic Partnership Agreement (CEPA) by early 2008,” he said. It was stressed that both the FTA and CEPA should be extensively promoted by the private sectors of the two countries to fully harness their potential.

“This would strengthen levels of bilateral economic cooperation and investment further,” he added.

The strategic importance of Sri Lanka as the gateway to South Asia because of the FTAs with India and Pakistan was stressed in addition to inviting Indian companies to enjoy the benefits of GSP+ scheme for exports to European Union, a facility which only Sri Lanka enjoys in South Asia.

He said that there was growing reciprocity with several large Lankan companies investing in Southern India to build apparel parks and production units.

Ceylon Chamber Chief Dayananda in his address quoted the headline “Sri Lanka is India’s best Opportunity” in the special country report carried in The Business Standard of India to coincide with Sri Lanka’s promotion. He said that both countries have competitive and comparative advantages to work and grow together. It was also stressed that there was greater scope for greater bilateral relations between India and Sri Lanka and time was ripe to harness this potential aggressively.

BOI’s Ariyaratne in his presentation said Sri Lanka had a lot to offer to Indian companies in terms of good infrastructure facilities, liberalised FDI rules and talented human resource base. Finance and banking were key growth areas in addition to the emerging software and BPO base. Indian companies could find these as attractive avenues of business cooperation.

Sri Lanka also hosted the reception and dinner on the second day of the Summit. At this gala event, Sri Lanka extensively promoted tourism. The Tourism Ministry in partnership with the tourism trade is wooing more Indian tourists with the launch of the Ramayana trail in Sri Lanka. Newly appointed Tourism Ambassadors Arjuna Ranatunga and Aravinda de Silva were also special guests at the reception which provided a packed audience with a scintillating performance by Channa and his dance troupe, western music by Ricky Bahar and Shanelle Fernando and Sri Lankan cuisine.

Earlier in the day, Sri Lanka Tourism Development Authority at a press conference unveiled the Ramayana trail to Indian media. Arjuna also promoted sports tourism ahead of the Indian cricket team’s tour to Sri Lanka in July.

The Sri Lanka Convention Bureau is also promoting MICE tourism among Indian corporates, while SriLankan Holidays is having a special promotion for Indian tourists booking flights until March 31, 2008 from any one of the 11 points it serves via 100 flights per week.