Sri Lanka: Ease of Doing Business

 The conversation then, is one which centres on whether Sri Lanka possesses the underlying policy frameworks, enabling environments, consistent policy execution and macro-environmental fundamentals, in order to facilitate the transformation of undisputed opportunity and potential, in to real growth.

 

 

by Dr. Hans Wijayasuriya-June 09, 2021

 

Chairman, Ceylon Chamber of Commerce.

On behalf of the Co-Chairs of the Sri Lanka Investment Forum, Sanjaya Mohottala Chairman of the Board of Investment and Dumith Fernando Chairman of the Colombo Stock Exchange, their respective institutions and the Ceylon Chamber of Commerce, it is a distinct honor and privilege to welcome you all to the Sri Lanka Investment Forum 2021.

Invest-Sri Lanka is both a proposition of partnership from an investment destination enriched with innate potential and opportunity, as well as an invitation from the people of a nation known for its deep-rooted culture of hospitality.

Sri Lanka - the Opportunity

The Opportunity that Sri Lanka presents – I believe is beyond debate. A comparison of Potential vs Baseline at sectoral and national level, as well as the breadth and depth of innate and under- capitalised resources, point to the potential for rapid growth.

To cite a few growth levers - an under-exploited tourism proposition, uniquely located Deep Sea ports, knowledge rich human capital, world class ICT eco-systems, excellence in apparel manufacture, and natural products, crops and minerals unique to the pearl of the Indian ocean.

Policy Fundamentals & Converting Opportunity into Growth

The conversation then, is one which centres on whether Sri Lanka possesses the underlying policy frameworks, enabling environments, consistent policy execution and macro-environmental fundamentals, in order to facilitate the transformation of undisputed opportunity and potential, in to real growth.

S-L-I-F 2021 has been designed to engender this conversation and to answer these questions. The forum brings together a wide spectrum of Policy Makers, Economists and Bankers, Development Planners, Facilitation Agencies and Industry Leaders, to provide deep insight in to the fundamentals which underly the invest-Sri Lanka proposition. 

Asia’s Next Growth Haven - Combining Potential with Capital

Growth potential de-risked by a consistent policy framework, and enriched through an Investment Facilitation Eco-System, provides fertile ground for capital formation.

When growth capital combines with innate and under-exploited potential, the result is a new nucleus of growth. This is a formula which has triggered successive growth havens across Asia over the past 5 decades. As the Asian growth wave continues to build momentum.

We are confident, that Sri Lanka uniquely located as the gateway to South Asia, will indeed be Asia’s next growth haven.

The External Sector and Macro-Economy in Focus

The forum will build the Invest-Sri Lanka Dialogue from the foundation of the country’s policy framework and macro-economic backdrop. Sri Lanka envisions a doubling of its economy over the next decade and has spelled a clear commitment to growth through its Investment and Tax policies.

In focus then, will be the management and expansion of the fiscal space, and the calibration of growth vs debt alongside deficits management, through a confluence of domestic productivity initiatives and external sector policies.

The external sector is pivotal to this calibrated growth formula. The forum will illuminate the primary instruments of Foreign Investment policies, Trade Policies and Export Facilitation Frameworks.

Provision for 100% foreign ownership is nothing new nor an exception in Sri Lanka. The Repatriation experience of foreign investors has been likewise unblemished, as has been the honoring of the 25 over investment protection agreements to which Sri Lanka is a signatory.

The Interplay of Investment, Export and Trade Policies

The forum will evidence the on-ground experience of long-term foreign investors as well as new entrants and detail the investment facilitation framework enabled by the BoI and other agencies.

S-L-I-F will also illuminate the interplay between Foreign Investment policies and equally progressive Trade and Export policies.

Sri Lanka’s preferential trade agreements have spawned an external market space of over 2.5Bn consumers, and our export development framework facilitates the conversion of preferential access into globally competitive outputs and growth opportunities for investors.

Investor Access and the Colombo Stock Exchange

Also, in focus is Investor Access – Friction free direct investment and repatriation constructs have enabled FDI over the past decades.

Equally, the Colombo Stock Exchange provides a buoyant platform for portfolio investments and has been consistently rated as one of the best performing capital markets in Asia.

Sri Lanka’s listed corporates exhibit in cumulation, attractive index returns and dividend yields, on the backdrop of modest valuations relative to regional peers.

Ease of Doing Business

The Forum will illuminate not only the positives but also areas where work is in progress at speed. Sri Lanka takes head-on, with commitment from the highest levels of government, the lagging indicators within the Ease of Doing Business Index.

The forum will discuss at Ministerial level the government’s commitment to fast track transformation across the spheres of Legal System Capacities and Processes, Alternate Dispute Resolution Constructs, Broad-based De-regulation, Institutional Reform and the accelerated digitization of institutional interfaces

Sri Lanka’s Legal reforms extend beyond process acceleration. Mature frameworks encompassing Intellectual Property, Electronic Transactions and Cyber laws have been in place for several years while the establishment of Data Protection and Privacy frameworks to support digital eco-systems are imminent.

Human Development, Literacy and ICT Excellence

Sri Lanka is 1st Ranked in the region on the Human Development Index. Child labor has never been a topic on Sri Lanka’s manufacturing landscape and we stand-out as an equal opportunity and ethical production destination.

We are proud of our uniquely literate citizenry and inclusive education systems, leading to a knowledge driven economy with a tripling of graduate resources and a 2.5x growth in ICT exports by 2025.

Digital Economy

The new world order is one where digital readiness and maturity is inextricably linked to a nation’s competitiveness.

Founded on innate excellence in ICT competence, Sri Lanka’s Digital Economy and Digital Transformation programmes are designed to drive domestic efficiencies in parallel with seamless global linkages.

Resilience

The world order is also one which is marred by harsh externalities – both man-made and natural. Investors today seek out resilience and agility – facets well evidenced in Sri Lanka’s V-Shaped Post-Covid Recovery with respect to exports and domestic production sectors.

Resilience is deep set in Sri Lanka’s DNA and is evidenced across public and private sector eco- systems.

Sustainability

The Resilience of a nation’s socio-economy is a subset of the broader topic of Sustainability – an edict which is deep rooted in Sri Lanka’s development fabric.

A focus on renewable energy, climate change and a commitment to an organic centered Green Socio-Economy are embedded in the strategic evolution of energy, manufacturing and agriculture sectors.

The forum will also triangulate the topics of Food Security, Domestic Production and agriculture modernization, cumulating to the optimization of macro-economic indices in parallel with growth acceleration.

Pivoting the Growth Gradient

A country at the inflexion point of its growth gradient will necessarily feature sharp pivots in terms of transformative initiatives. The forum will dialogue on Sri Lanka’s Port City Special Economic Zone, Innovation in Off-Shore Financial Services and the Parallel development of multiple deep- sea ports. Mega initiatives which will fuel a sharp uplift in growth gradient.

Sri Lanka’s broader investment opportunities span a wide spectrum of sectors. The forum will deep dive in to Tourism, ICT, Apparel, Pharma, Agriculture and Infrastructure development. 

Vision for the Nation

Sri Lanka’s commitment to compete and excel on Asia’s investment landscape is indelibly coupled with the vision and commitment of the country's government and leadership. Today we are singularly honored to have with us His Excellency the President who will frame the Invest-Sri Lanka proposition in the context of his vision for the nation.

Commencing with His Excellency the President, the Invest-Sri Lanka proposition is collectively espoused by stakeholders who will themselves be the partners, enablers and underwriters of Investment and growth going forward.

Collective Passion & Commitment

We are grateful for the momentous support and contribution rendered by the Honorable Prime Minister, our Ministerial Speakers, Ambassadors, High Commissioners and their respective missions in Sri Lanka and Overseas, the 60 over Public and Private Sector project promoters, 90 over speakers and panelists, Policy Makers, Regulators, Multilateral institutions, Listed Corporates, the teams from the Board of Investment, Ceylon Chamber of Commerce and the Colombo Stock Exchange, and finally and importantly our Strategic Partners and Sponsors.

I make mention of these pivotal stakeholders, not only to thank them on behalf of the conveners of S-L-I-F 2021, but also to point to the collective passion behind the exposition of the Invest-Sri Lanka proposition. I am confident that this collective passion represents and embodies, Sri Lanka's commitment to deliver on its holistic growth investment proposition.

Going Forward – A Platform for Growth Partnerships

The forum is only the beginning of what we envisage to be an ongoing platform for the seeding of investment partnerships. A platform which enables the lighting up of multi-faceted growth pathways which are mutually reinforcing and mutually rewarding for all participants in Sri Lanka’s decade of growth.

I wish you all good health, and a rewarding and fruitful engagement at the Sri Lanka Investment Forum 2021.