Chronicle Pharmabiz Special
Destination Sri Lanka
The Sri Lanka Government is business-friendly, and, is actively pursuing a policy of economic liberalization with emphasis on private sector investment. The private sector plays a vital role in traditional areas of public investment such as telecommunications, energy and transport.
Sri Lanka is the logical location for manufacturing and service organisations that wish to establish a presence in the region as the island is ideally located as the gateway to the vast Indian subcontinent - home to a quarter of the world's population.
The nation has bilateral trade agreements with countries like: Belgium, China, Denmark, Egypt, Finland, France, Germany, Indonesia, India, Italy, Japan, Korea, Luxembourg, Malaysia, Netherlands, Norway, Romania, Singapore, Sweden, Switzerland, Thailand, United Kingdom, United States of America etc.
India, since December 2001, enjoys a preferential trade policy that has been evolving through regular visits of the Sri Lankan premier to India. The results are showing as a nature of this new development in the Indo-Lanka trade relations. The signing of Indo-Sri Lanka Free Trade Agreement (ISFTA) is aimed at providing an impetus to the regional integration process in the South Asian region. Indian Investments account for SL Rs 2.8 Billion from 46 Projects in operation up to last year.
Tremendous Business Opportunities
It's easy to do business in Sri Lanka and its close proximity to the markets is a tremendous advantage - the most liberal business and investment environment in South Asia Sri Lankan authorities offer to investors - good policies, access to markets, good infrastructure, a tax-friendly structure and duty-free import of raw materials for export industries.
n Cost Effective Production Base - it is economical for manufacturers in southern India to set up production bases in Sri Lanka & then sell to the entire South Asian region.
n The Government's Industrialisation strategy calls for the expansion, diversification and upgrading of the industrial base and promotion of foreign investment in virtually all the sectors of the economy.
n Open Economy
n Solid Infrastructure
n Its strategic location at the crossroads of East-West maritime routes and international time zones
n Presently rated as South Asia's leading sea and services hub
n International airport ranked first in South Asia
Construction and Infrastructure Expo
Private and public investment programmes have been implemented to improve the country's basic infrastructure facilities. Today, Sri Lanka's infrastructure ranks as the best available in South Asia. The government is actively encouraging private sector investment in infrastructure on the basis of BOO (Build, Operate and Own) and BOT (Build, Operate and Transfer). Currently there are private investment projects in power, ports, water sanitation, transportation (highways and rail) and IT.
The Sri Lankan government now encourages local and foreign private investment in the country's infrastructure. Private investors are already active in telecommunications services such as cellular services and pay phone networks. Investments into the power sector and in the port sector are now being implemented. Other opportunities in infrastructure investments are wide ranging-highways, public transport and environment. Foreign ownership up to 100% is allowed in these ventures. The manufacturing sector in Sri Lanka accounts for nearly 29% of the total GDP. This sector has grown from SL Rs 1,85,735 million in 1998 to SL Rs. 2,04,244 in the year 2001. This sector includes pharmaceutical industry also. In pharmaceuticals, the high quality and lower prices of domestic products helped the domestic industry to maintain its competition over imports.