We are receiving a lot of business interest from companies across different sectors in the UK in doing business with Sri Lanka, said the Deputy Head of UK Trade and Investment for Sri Lanka, Nadeesha Epasinghe in an interview with Sunday Lakbima News, 10 Oct.

There are over a 100 businesses with an affiliation to UK currently operating in Sri Lanka, she said.

The sectors that show the greatest potential for UK companies in Sri Lanka are Infrastructure, Tourism, Power, Education & Training and ICT. In addition, we feel that there are opportunities in the areas of Agriculture, Fisheries and Garments," she added.


Following are the excerpts from the interview:


How do you describe the bi- lateral relationship with Sri Lanka after the end of the war?

The UK has close and long-standing ties with Sri Lanka. Since Sri Lanka obtained independence from the UK in 1948, the two countries have built on their historical links to develop a close partnership across a wide range of spheres, but especially in trade, culture and education.

In addition to these ties, the bilateral people-to-people links are also very strong. Many Sri Lankans have studied or worked in the UK and regard it as their second home and Sri Lanka is a top tourist destination for Britons.

Statistics released by the Sri Lankan Board of Investment (BOI) also support these links. In 2009, Foreign Direct Investment (FDI) by the UK totalled nearly US$300 million – the second largest share of FDI from a single country for 2009. Meanwhile, UK exports to Sri Lanka totalled US$186 million while imports from Sri Lanka to the UK totalled US$1billion in 2009.

What are the development projects the UK has initiated in Sri Lanka?

The majority of the development aid the UK has given Sri Lanka has been through multilateral mechanisms, such as the EU, World Bank and the UN. Moreover, the UK has assisted Sri Lanka's wider efforts for infrastructure development, such as bridges and flyovers, through the Export Credit Guarantee Department (ECGD) credit of £50 million. The UK’s Department for International Development (DFID) has also contributed towards humanitarian aid in Sri Lanka.

Is Sri Lanka an investor friendly country? How many UK based companies are planning to invest in this country and how many are already here?

We are receiving a lot of business interest from companies across different sectors in the UK in doing business with Sri Lanka. There are over a 100 businesses with an affiliation to the UK currently operating in Sri Lanka. Some of the big investors from the UK are Marks and Spencer, Scott Wilson, De La Rue Currency, Mabey Bridge, GlaxoSmithKline and Cairn Energy to name a few.

What are some of the potential sectors for UK investments in Sri Lanka?

The sectors we see that show the greatest potential for UK companies in Sri Lanka are Infrastructure, Tourism, Power, Education & Training and ICT. In addition, we feel that there are opportunities in the areas of Agriculture, Fisheries and Garments (in which UK companies can build on the already strong links).

You have granted humanitarian assistance for various development programmes in Sri Lanka. What was the total amount you donated to the Government of Sri Lanka for this year?

Between 2008 and 2010, the UK provided approximately Rs.5.4 bn for humanitarian assistance in the North and the East, disbursed through partner organisations. These included assistance through DFID in response to needs on the ground arising from the final stages of the conflict between the Government of Sri Lanka (GOSL) and LTTE, and its immediate aftermath. During the same period, the UK provided Rs.11.5 billion for infrastructure development through the ECGD.

It is interesting to note that several recognised colleges from the UK are entering the education market in Sri Lanka. How would you describe the standards of these colleges and the education they offer?

The UK is world renowned for its high standards of education. While there are thousands of students who choose to study in the UK, there are more that find it difficult to afford it. We are finding more local colleges partnering with UK colleges and universities to provide the same UK degree programmes, thereby giving the opportunity for local students to get a world class degree at an affordable price. A great example of this is Business Management School (BMS) in Sri Lanka facilitating the partnership between the Institute of Bankers of Sri Lanka and Northumbria University to provide degree pathways towards bachelors and masters degrees. More recently, we had CIMA (a British qualification) teaming up with Northumbria University through BMS to grant CIMA-qualified students specific exemptions from Northumbria’s BA (Hons.) in Business and Management. Students who have completed CIMA will now be able to complete the Northumbria honours degree with one year of part-time study. There are also other successful examples in this sphere – notably, Staffordshire University, University of Wales, University of London, University of Westminster, University of Wales Institute, Cardiff and Sheffield Hallam University – who offer degrees at Bachelors and Masters levels in Sri Lanka.

It is notable that a good number of students are leaving for the UK to continue their studies in various fields. In the past year, how many student visas have been issued in Sri Lanka? On the same note, how many work and settlement visas have been issued?

Migration is an important part of the UK-Sri Lanka relationship. The purpose of the UK Border Agency's visa system is to allow the admission of genuine applicants, whilst preventing abuse. During 2009, we issues 5,000 visas for students, 1,150 for workers and 525 for persons settling in the UK.

With the loss of GSP+ Sri Lanka has not given up hopes of trading with the EU. How do you propose to boost trade ties in the future?

It is regrettable that Sri Lanka lost the GSP+ concessions. However, the UK and Sri Lanka will continue to have strong commercial links. The UK Trade and Investment (UKTI) section at the British High Commission, Colombo is working to raise awareness of business opportunities between our two countries and supports individual British companies to do business here, as well as Sri Lankan investors interested in investing in the UK.

We believe that the UK and Sri Lanka can be partners in prosperity. We are meeting with government officials, businesses, chambers of commerce and other key decision makers in Sri Lanka to make them aware as to why the UK is a number one destination for businesses. Simultaneously, we will be working closely with our counterparts in London to talk about why it is an opportune time for British businesses to invest in Sri Lanka.

The UK has one of the most open business environments in the world and the least number of barriers to entrepreneurship. Sri Lankan businesses looking to start up an operation in the UK will find it easy to do business not only because the UK is the No.1 gateway to over 500 million people living in the 27 member states of the EU forming the world’s largest single market but also because it only takes 13 days to set up a business in the UK. Moreover, the second most flexible labour market in Europe, a high level of transparency, one of the most stable regulatory environments and strongest ICT infrastructures in the world would give businesses the edge they need to succeed.

It should be noted that the UK is recovering strongly from the financial downturn. The UK government has taken decisive action to equip Britain for long-term success by restoring health to public finances and confidence in the economy, giving the boost of confidence that investors need. The emergency budget in June set out a clear strategy for tackling the fiscal deficit and ensuring the financial stability businesses need to prosper. The budget also set out a roadmap to reduce corporate tax over the next four years from 28% to 24% by 2014 – which would make it the lowest rate in the G7 and one of the lowest in the G20.

The UK is geared to partner with Sri Lankan businesses in this new era of economic prosperity. We at UKTI are ready to make this happen.