Sri Lanka's tourism sector woos UAE investors

DUBAI - Sri Lanka's constitution guarantees the safety of investment of foreigners in the country

Sri Lanka's safe haven status as a destination of foreign direct investment has increased its appeal to investors from the UAE, the island nation's minister said on Tuesday.
Speaking at the Annual Investment Meeting, Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka, said there are number of mechanism in place to protect investors. Sri Lanka's constitution guarantees the safety of investment of foreigners in the country. "We have received a numerous inquiries from interested parties from UAE in the tourism sector and we do encourage more investment proposals from the UAE and my Ministry will facilitate their interests," he said.
He said AIM is creating a significant platform for global leaders to meet and discuss diversified investment opportunity in different destinations.
"I am glad to mention that I have been participating in the event for last five years as it gives more exposure for Sri Lanka to highlight the investment potential that could be offered to foreign investors. In addition, it provides me an opportunity to meet Head of States, Government Ministers and high ranking government officials and corporate Leaders to interact and network with them and to persuade the potential parties to visit Sri Lanka and seeing in believing for various investment opportunities available in the country."
He said that the UAE is certainly a successful model to be followed. "The UAE has taken numerous initiatives in embracing innovation and knowledge to achieve sustainability. I totally agree that the visions of the UAE leadership for innovation and knowledge to achieve sustainability will definitely go long way and produce long lasting outcome for future generations."
The UAE is the major trading partner for Sri Lanka in the GCC and the two-way trade has reached $1.35 billion in 2015. With a number of Sri Lankan companies interested to venture into the UAE market, I hope that 2016 will produce better results with improvement in two-way trade between Sri Lanka and the UAE.
"The UAE is the largest investor in Sri Lanka from the GCC. The UAE has invested in automobile, telecom, manufacturing, hotel industry, tourism etc in the recent past. My Ministry will provide the necessary guidance and assistance to potential investors who are interested to invest in Sri Lanka from the UAE," said Bathiudeen. "Sri Lanka was able to attract $1 billion as FDI in 2015 and expects more FDI flow in 2016."

The turbulence in the global market is affecting small economies like Sri Lanka with its main export commodity of tea facing slower demand in the Middle Eastern market and Russia, the minister said.
However, he said the slowdown as short-term disturbances and hoped that all major economies would bounce back enabling countries like Sri Lanka to benefit from fast recoveries in the global economy.
"Sri Lanka has been one of the strongest supporters of UAE for hosting Expo 2020. We will organise one of the largest pavilions in Expo 2020 to promote Sri Lanka's trade, investment and tourism taking the advantage of the strategic location of Dubai and to reach out the world," he emphasised.
Sri Lanka's economy has performed with satisfactory level in the recent past and registered nearly six per cent growth in 2015. Despite the economic situation in the global market, Sri Lankan economy has achieved satisfactory growth in exports and tourism. The migrant workers' remittance has also contributed immensely to Sri Lanka's overall economic growth. "We expect more FDI flow to Sri Lanka which would generate more employment opportunities and hope our manufacturing sector to perform better than the previous years," he said. - issacjohn@khaleejtimes.com