AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, June 27, 2019 (PPI-OT): Sri Lanka is the best place for investment with many incentives especially to foreign investors. The government’s policies and social environment are very supportive to investment, and more steps will be taken to boost trade and investment at the regional and international level.
Sri Lankan Consul General in Karachi G.I. Gnanatheva, while speaking at a dinner reception hosted for him by Rotary Club Karachi Platinum here at a local Club, invited Pakistani investors and traders to take maximum benefits from the ideal investment and business situation in Sri Lanka. It has many tariff and duties concessions and tax holidays, along with vast linkages with the world and market access.
The reception was attended by leading Pakistani businesspersons from different sectors including popular builders. He said since the formal start in 1948, the relations between Sri Lanka and Pakistan had become very strong and these were characterized by mutual respect, good understanding and excellent cooperation. This relationship and cooperation was mainly focused on political, economic, education, cultural and security spheres.
He said Pakistan was the second largest trading partner of his country in South Asia. For increasing the bilateral trade, free trade agreement between the two countries was signed in 2005, which pushed the trade volume from dollars 158 million to dollars 508 million in 2018. However, more steps and efforts were needed to exploit the real trade potential existing on both sides. At present, he said, the balance of trade was heavily in favour of Pakistan.
A number of trade and investment promotional programmes included exchange of trade delegations and participation in each other’s international trade fairs. However, there should be more cultural and business delegations as people-to-people contacts would definitely help boost trade and investment between the two countries, he said.
Sri Lankan Consul General urged Pakistani investors and traders to come, and start trade and investment in his country and reap the benefits available, especially under FTA singed by the two countries. Sharing his diplomatic experiences, he said that the posting in Karachi was the fourth one in his career. He found Karachi the most beautiful and the people very hospital and cooperative.
In pursuance of his government’s policy of increasing the scale of trade and investment between the two countries, he as the Consul General, was working for the same in Karachi. “I specialize in trade affairs. My previous posting was for the promotion of Sri Lankan trade,” he said and added that he would love to work with the business community of Sindh particularly of Karachi. The diplomat said Sri Lanka being one of the five biggest tea producers did contribute twenty percent of the total world tea stock.
He mentioned that the main exports to Pakistan from his country were tea, betal leaves, coconut and coconut based products, MDF boards, spices, textile articles, natural rubber, industrial and surgical gloves and animal feed. And, the imports from Pakistan were woven fabrics, cement, pharmaceutical, rice, cereals, dry fish, fresh fruits and vegetable, electrical machines, apparels and other textile products.
He shared that due to liberalized and investment friendly policies since 1977, Sri Lanka had attracted significant investment form many countries. Over the period, it had taken many unilateral steps to simplify its tariff structure. It has resilient economy, educated and skilled work- force, quality of life, social infrastructure, location and connectivity, access to key markets, fast developing infrastructure and vibrant business environment.
He said Sri Lanka’s foreign trade policy focused on liberalization of the trade regime aimed at integrating the country with global economy. Based on product categories, Sri Lanka maintained a four band tariff structure which included zero tariff for basic raw materials and machinery; 5 % duties for semi processed goods; 15% for intermediate products and 30% for finished products.
Sri Lanka had granted preferential tariff benefits to a wide range of products imported under the trade agreements which are: Generalized System of Preferences, Indo-Sri Lanka Free Trade Agreement, Pakistan-Sri Lanka Free Trade Agreement, SAARC Preferential Trading Arrangement, South Asian Free Trade Area and Asia Pacific Trade Agreement.
Sri Lanka was also in the process of finalizing other two trade agreements to gain a wider market access to the most dynamic economies of these days, China and ASEAN member countries, through Singapore FTA. About investment policy, he said, there was no restriction on repatriation of profits/dividends of foreign companies, also investments made in stock market could be repatriated freely any time.
Hundred percentage foreign ownership was permitted in most industrial and a number of services sector activities including banking, insurance, finance, construction, mass transportation, telecommunications and information technology and petroleum distribution. The foreign companies operating in Sri Lanka were very comfortable as we have strong linkage with and market access to many counties. Pakistani businessmen were also successfully doing business there, he said.
The Consul General emphasized that Sri Lanka and Pakistan could support each other’s tourism industry as both the countries were rich in beautiful natural scenes and historical places. He said Sri Lanka and Pakistan governments and private sectors could jointly work for promoting the food chains each other’s country. To a question, Sri Lankan diplomat said India was very close to his country so the people did easily and frequently travel to India.
For more information, contact:
Consulate General of Sri Lanka in Karachi, Pakistan
20/1, 18th Street, Kh-e-Shamsheer Phase V, DHA, Karachi, Pakistan
Tel: +92-21-35346614, +92-21-35346615, +92-21-35857471
Fax: +92-21-35857472
E-mail: slcgkhi@yahoo.com, slcgkhi@cyber.net.pk
Website: http://www.slcgkhi.com