Now is the ideal time to invest back home

BizPact gets the message across to international diaspora

By Nizla Naizer

Somewhere in Sri Lanka, peace spells opportunity. This was the message delivered by BizPAct 2009 which called out to the investors among the Sri Lankan diaspora settled abroad to seek and find those who are waiting for an opportunity in the various regions of the island to develop and prosper.

Business for Peace Alliance Secretary General Manique Mendis (third from right) moderates the concluding session at BizPact. Others from left are Employer’s Federation of Ceylon CEO Ravi Pieris, National Chamber of Exporters President Rohan Fernando, Foreign Affairs Ministry Secretary Palitha Kohona, Disaster Management and Human Rights Ministry Secretary Rajiva Wijesinha and BPA Chairman Suresh De Mel

Organised by the Business for Peace Alliance (BPA), BizPact 2009 kicked off at the BMICH on Thursday with over 40 investors from across the world flying down to Sri Lanka at their own expense to find out for themselves the contribution that can be made to develop the newly liberated nation. The conference came to a conclusion on Monday with international and local investors pledging their support to regional development and vowing to take the message back to their local communities across the globe.
With the dawn of peace in the country and the opening up of the North and East to development, this unique conference not only brought potential investors and regional entrepreneurs together, it also took these investors on a three day trip to various regions of their choice from the North and East to the Deep South to see first hand the status quo within the region and help them seek out suitable opportunities for themselves.
Collaborative effort

The unique collaboration between businesses, investors and policy makers to drive development in the regional sectors of the country was clearly reflected at the concluding ceremony where all parties came to the consensus that much more needs to be done with specific attention on Human Resources Development and Government cooperation.
The investors present were not only Sri Lankans domiciled in countries such as UK, USA, Australia, Germany and UAE but included foreign investors as well. Speaking at the launch of the conference, BPA Chairman Suresh De Mel explained that if Colombo is the hub, the regions are the wheels and that investing in Sri Lanka is not only about investing in Colombo. “There are so many opportunities for development in the regions that go unutilised and with this conference we will aim to bring some prosperity to the SMEs. Developing the country depends on developing the SMEs which contribute to 80% of all businesses in Sri Lanka.”
Peace spells opportunity
The BPA identified 20 potential projects with advice from their regional Chambers of Commerce to kick start the event. From Anura Pushpa Kumara from Kegalle who required a Rs. 4.8 million investment to set up an IT school to W. Weerakoon who wanted to develop his eco-tourism business in Hambantota, it was heartening and inspiring to see all twenty entrepreneurs state their case and justify the investments.
The investments required ranged from a Rs. 2.5 million plastic recycling expansion plan in Kandy to a Rs. 32 million rice mill project in Trincomalee. Through BizPact the entrepreneurs and the investors were given the opportunity to sit and discuss the projects face to face in order to find feasible partners.
The projects selected by the BPA also contained a range of industries from a Silk Factory expansion project in the Kandy district to Buffalo Curd production in Anuradhapura to furniture manufacturing in Kalutara and costume jewellery making in Kegalle. While some of the projects were proposed by the SME entrepreneurs in order to cater to the need of the area, many others were anticipating an entry to the export market and required assistance.
A pottery maker from the Kegalle district, Chandrasena for example had already found a potential buyer in Australia for his unique clay pots that can be used on gas stoves. However, he was in the quest for an investor to partner him and provide him with the necessary resources and expertise to take his products to the international market.
At the conclusion of the conference, Chandrasena had the assurance from the National Chamber of Exporters President Rohan Fernando that the necessary support would be given to take his product forward and find an international backer. BizPact had already served its purpose.
What the international investors had to say
Jeremy Liyanage, Australia
BPA Australia liaison and businessman, Jeremy Liyanage stated that as international investors, they would prefer to have tighter project proposals with much more accurate information that could facilitate decision making.
“The country may have peace but within the international diaspora in Australia there is a lot of polarisation within the community,” he informed, “But we want to assist our country as best we can.”
He explained that while Sri Lanka offers the international diaspora opportunities for good business, technology savvy young people, value for money and the ingenuity to succeed against any odds, they in return can offer Sri Lankan entrepreneurs the expertise in terms of mentoring or CSR, investment and knowledge on how to do business in the international sphere.
“However, there must be strict regulation, environmental concern and political stability to attract international investors.”
After Liyanage’s visit to the Southern region where he visited the Galle, Matara and Hambantota Chambers of Commerce and several business establishments, he stated that behind the tourist façade Sri Lanka is a place with ‘extraordinary’ people. And despite the region containing several business opportunities in industries such as pottery, tourism and tourist operators he cautioned that many SMEs have a ‘fairy tale view’ of the international markets.
“They believe that as long as their product is right, it would miraculously sell in the open market. It would be a big advantage if these regional businesses understood the real picture,” he added.
He also called on the Chambers of Commerce within the region to play a more active role. “The Hambantota Port for example seems like a secret deal between the Chinese and Sri Lankan Governments with no involvement by the Hambantota Chamber of Commerce who can actually capitalise on the opening of this new harbour.” Stating that the Chambers themselves need to develop the skills and capacity among the members, he assured that he will take the message across to fellow Sri Lankans in Australia.
“There are many ways in which we can contribute to regional development in a practical manner, from mentoring to advising and product development and marketing knowledge which is vital.”
Susan Joachim-Germany
Hailing from a tourism background, Susan Joachim stated at the start of the conference that it’s important to have collective responsibility in order to develop Sri Lanka.
She called on the entrepreneurs to focus on attracting high end tourists with products that cater to their demand but at the same time warned that Human Resources Development is vital at this stage.
At the end of the BizPact conference, Susan who visited the East with a focus on Trincomalee in particular said that the picture is still too ‘fluid’. “Business is all about making money, but if you want to attract business you need better proposals and better infrastructure. Communication is key, and many in the regions still do not have that basic business acumen.”
She added that many of the entrepreneurs they spoke to complained that it was difficult to deal with the government and the various levels of red tape that needs to be crossed. All this must change in order to present Sri Lanka as an attractive destination for investors. While stating that she will look for investors in Germany who can take advantage of the tourism potential in the East, she concluded, “Don’t let the opportunities slip past you, all parties must work together to get our country going.”
Aruni Evans-USA
Active promoters of BPA in the USA, Aruni Evans and her family visited the summit with the intention of seeking opportunities that can be taken back to their fellow Sri Lankans in the States. Her father, Dr. Alexander Wijayasinghe, a principle auditor for ISO 9000 stated that aspects of quality and standardisation are vital to investors in the West.
“We came to Sri Lanka with a lot of hope,” Aruni who visited Trincomalee in the East stated. “However, we will be looking at export opportunities for products that have a longer shelf life. It will take some time to find investors for these products but some of the items we examined were worthy of shelf space even at Macy’s.”
Promising that the Sri Lankan diaspora will be debriefed and implored too, she also added that a ‘good business plan’ is vital for entrepreneurs to move forward.
Samantha Rasquinho – UAE
Stating that the passion of the people in Sri Lanka is amazing to see, UAE based financial executive Samantha Rasquinho said that she had identified a prawn farm project in the East as a feasible investment to take back to the UAE.
“I came to the BizPact conference on a fact finding mission because the Sri Lankan expats in the UAE keep asking me about how they can help the country develop and I didn’t have the answer,” she explained, “There are several logistical issues including the lack of clean water in this particular project, but I’m sure with the right assistance things can be worked out to the satisfaction of all parities.”
Jayampathi Perera – UK
Veteran investor and promoter of Sri Lankan business in the UK, Jayampathi Perera informed that to the rural entrepreneur, money was not the major issue. “Many of whom we approached were suffering with a shortage of knowledge, so it is knowledge based investment that we need to encourage and promote.”
Jayampathi visited the island with a group of 11 investors including three Tamil nationals and a few British nationals and he explained that mobilising the diaspora to action is not an easy task.
“Many of them are armchair economists and generals who say they would like to help but rarely do. And within the diaspora community, we need to have unity in order to encourage them to bring in more business from Sri Lanka.”
Of the one million Sri Lankans living in the UK, 700000 are of Tamil origin he explained, and with over 200 retail outlets in Central London run by this community he stated that it is important to absorb them into the development of the regions, especially the North and East.
“There is potential for growth in the eco-tourism, agriculture and furniture industries in Sri Lanka,” he stated, “We must focus on a niche market and keep it going.” However, the BizPAct summit was a success for Jayampathi as some of the investors involved had already expressed interest in purchasing land off Trincomalee to construct a project.
What the policy makers had to say
Rural masses keen to be entrepreneurs–
Minister Amunugama
Deputy Minister for Finance and Planning Sarath Amunugama speaking at the opening of the summit said that it’s time for the Government to reflect on the challenges of investment in Sri Lanka while calling on the international diaspora to bank on the business potential of the people in the country.
“The biggest obstacle previously was the terrorist issue, now that the war is over; it is time for the investors to take the opportunities available in a serious light.”
“The cost of investing in Sri Lanka is diminishing with the fall in freight and insurance charges,” he continued, “and the Government will continue to develop infrastructure.”
He listed out the developments taking place through the proposed power plants including Norichcholai that are due to come up, subsidised fuel prices, highways to key parts of the country including the Southern Highway and a proposed
Colombo-Kandy highway.
“Also, Sri Lanka’s proximity to major markets such as India make it the ideal destination to invest and tap into their potential,” he informed the investors, “And with political stability returning to the North you will see rapid development.”
Already, close to Rs. 1 billion has been deposited in the two state banks operating in the IDP camps of the North with the inhabitants of the camp requesting facilities to do business, he explained.
“We need our business community to take more action as the rural economy is driven by the private sector. Invest with commitment, courage and the belief that the business community can invest and win.”
Time to unleash pent up energy –
Dr. Palitha Kohona
Foreign Affairs Ministry Secretary Palitha Kohona said that the country is on the brink of a development boom as the pent up energy of the past 27 years is unleashed through economic activity.
“The change witnessed in the East is one such example,” he stated, “It is phenomenal. There are new roads and new construction, and everyone is repainting and refurbishing as they know that the development that has been held back for so many years will finally take place.”
Speaking on the concerns of the diaspora on the state of the IDPs in the North he assured that the Government will take all the steps necessary to ensure that these individuals can return to their villages and homes and become economically viable citizens of the country. “When they came to us they needed protection, and we provided it to them. Till the North is cleared they will remain in our protection and we are providing all the facilities including a school of 1400 students at Menik Farm.”
Explaining that the Government is also keen on letting the diaspora see the true condition of the North he said that two months ago the Government brought down a group of Tamil youth down to the country. “The North is not Shangri-la, but it is no where near the dire picture painted by the West, and that is what the youth need to see and learn.”
Inclusive development key for peaceful future –
Prof. Rajiva Wijesinha
Stating that the unrest in Sri Lanka’s past stemmed from the lack of opportunity to certain segments of society, Disaster Management and Human Rights Ministry Secretary Rajiva Wijesinha said that at this important juncture, it is vital to provide opportunity to all.
“Prior to the 1980s, when the Government closed a door, it meant closing the entire house,” he commented, “And a lot of people felt deprived. With the standardisation for University entrance implemented in 1972 for example, many capable students were left in the lurch. And although in Colombo and the urban areas there were opportunities in employment, in the rural areas where there was no private sector, there was no scope for development and led to the genesis of the LTTE’s bitterness.”
The private sector is now a vibrant partner and a leader in development and while commending the forum for bringing investors from the international diaspora together, he stated that more opportunity provided in the regions is ideal for the country.