India’s Foreign Minister says India is willing to make investments in Sri Lanka
India’s Foreign Minister Subrahmanyam Jaishankar has reportedly stated that India was willing to invest in Sri Lanka.
According to the Indian High Commission in Sri Lanka, in addition to being Sri Lanka’s largest trade partner, India is also one of the largest contributors to foreign direct investments (FDIs) in Sri Lanka.
A number of leading companies from India have invested and established their presence in Sri Lanka. According to Sri Lanka’s Board of Investments (BOI), FDIs from India amounted to around US$ 1.7 billion during the period from 2005 to 2019. The main investments from India are in the areas of petroleum, retail, tourism and hotel, manufacturing, real estate, telecommunication, and banking and financial services.
Similarly, investments by Sri Lankan companies in India have also recorded a surge, taking advantage of India’s dynamic economy and wider market. Significant examples have been cited as Brandix (about US$ 1 billion to set up a garment city in Visakhapatnam), MAS holdings, Damro, LTL Holdings, and other investments in the freight servicing and logistics sector.
OSL take:
Sri Lanka and India enjoy strong bilateral and trade ties that have been further enhanced by a functioning free trade agreement (FTA). India is also a key development partner of Sri Lanka and also enjoys preferential status in trade and economic affairs in Sri Lanka and vice versa. With Sri Lanka’s economy on a growth path with key economic sectors showing an expansion in business/investment opportunities, Indian businesses could confidently explore the growing opportunities in neighbouring Sri Lanka and also look at forming partnerships and joint ventures with local businesses. Also, other foreign businesses/investors interested in doing business with India could look at setting up base in Sri Lanka to engage with India using the trade agreements as well as preferential treatment in business/trade enjoyed by Sri Lanka.
| Article Code : | VBS/AT/01032022/Z_7 |