Sri Lanka can attract Indian firms looking to expand abroad says ITC chief
EconomyNext: Indian companies who have expanded and become competitive under Free Trade Agreements are now looking to expand abroad and Sri Lanka had a good chance due to proximity, Sanjiv Puri, chief executive of ITC group said.
Over the past 10 years, India has rapidly opened up, under the Prime Minister Narendra Modi.
“India is in the process of, and has signed FTAs. Many more FTAs are coming,” Puri said in Colombo at an event which brought together local business leaders and representatives of ruling and opposition parties at ITC Ratnadeepa, built by his own group.
“Manufacturing, especially high-tech manufacturing is reviving at a very rapid pace, electronics, semiconductors.”
The delegation of CEOs from the Confederation of Indian Industry headed by Puri that visited SriLanka was asked why they were looking to invest in Sri Lanka if India was growing so fast. Puri is the immediate past President of the CII.
“They have become competitive, have access to technology, have their own strengths,” he explained.
“And now the aspirations are also larger in the Indian enterprises to go beyond geography.
“Now there is this aspiration and it’s a natural process.”
“And some companies will choose to go to proximal countries. Some companies will choose to go elsewhere. Some companies will go far off.”
In Sri Lanka, in addition to ITC which has built a hotel, CEAT was making tyres, Piramal owned a glass bottle maker. Adani had invested in a container terminal with John Keells Holdings.
Meanwhile Puri said there was a wide variety of companies looking to go out that were interested.
“There are companies of various sizes,” Puri said. “There are companies of various priorities. But very clearly, I think there is a tremendous amount of comfort.
“I can tell you that Indian companies have, particularly coming to Sri Lanka because there are a lot of cultural bonds, historical ties. We understand each other better. When you are going to a new place, the culture becomes very important.”
“So, this becomes a natural choice. And there are many companies that are willing.”
OSL take:
Sri Lanka and India enjoy strong bilateral and trade ties that have been further strengthened through an operational free trade agreement (FTA). There are many Indian businesses already operating in Sri Lanka that have successfully recorded growth and profits indicating the increasing business potential in the country. The statement by the chief executive of ITC group that Sri Lanka could present a destination for Indian businesses looking to expand operations indicates an untapped business opportunity for Sri Lanka. With Sri Lanka’s economy on an expansion path resulting in an overall growth in business/investment opportunities in Sri Lanka’s key economic sectors, Indian businesses/investors could confidently explore the lucrative ventures in neighbouring Sri Lanka. The incentives offered to foreign businesses/investors entering Sri Lanka and the strong trade ties enjoyed by the country with many foreign countries also add to Sri Lanka’s attraction as an emerging business destination in the South Asian region. Given all these positive developments, Indian businesses/investors could explore the expanding business/investment opportunities in Sri Lanka while also looking at expanding operations through local collaborations. Sri Lankan businesses could also use the increasing interest among Indian businesses/investors to explore opportunities in Sri Lanka to look at expanding operations through partnerships or joint ventures.
| Article Code : | VBS/AT/20250709/Z_4 |