Pakistan Sri Lanka Busniess Forum

Pakistan sees Lanka as entry point to EU and India ( March 14, 2006 )

By Poornima Weerasekara

The multiple free trade agreements and the EU GSP plus status has created a unique niche position for Sri Lanka as a springboard for regional markets and the Europe Union.

A top level 22-member delegation from Pakistan Sri Lanka Business Forum (PSLBF) which is currently in town stressed that many discerning investors, specially from the neighbouring South Asian region are keen to utilise this opportunity.

“We see a huge potential in Sri Lanka as a gateway to the EU and India. It is also the centre point for East Asian markets,” PSLBF President Abdul Rauf Tabani told the Daily FT during a business facilitation meeting hosted by the MTI Consultancy Group.

Mr. Tabani highlighted apparel manufacturing, pharmaceuticals, the business process outsourcing sector and textile mills were as the key areas of mutual trade focus for both Pakistan and Sri Lanka.

“Pakistan is rich in cotton. If investors are able to establish a value addition operation here in Sri Lanka, then they have the opportunity to export it to the EU under preferential tariff conditions,” he stressed.

The high literacy level in Sri Lanka has also resulted in Sri Lanka’s supervisory level labour to be of the highest demand in the region.

However, Mr. Tabani stressed that the government needs to be directly involved in training skilled workers and supervisors required by the apparel sector, thereby providing an assurance of a continued high quality labour supply to potential investors.

Pharmaceuticals, another emerging area for corporation, is viewed to be of special significance in the coming decade as the next big revolution after IT is expected to be in the bio economics sphere.

According to Mr. Tabani Sri Lanka is also well poised to penetrate the business process outsourcing market with its high literacy level. Pakistan is also following a similar strategy as Sri Lanka to position themselves as ‘disaster management sites’ for organisations who do not want to have all their operations restricted to one country.

PSLBF President Abdul Rauf Tabani (left) with MTI Consultancy CEO Hilmy Carder. Delegates from the top level 22-member party from Pakistan Sri Lanka Business Forum (PSLBF) are also present. Pic By Daminda Harsha Perera .

The Lankan apparel industry has also been threatened by a lack of a broad textile supply base. Mr. Tabani highlights this area as a massive growth area, provided that strict Lankan labour laws are relaxed.

Commenting on the progress of trade between the two countries, specially after the signing of the landmark FTA, Mr. Tabani noted that the outlook was very positive. Nonetheless, he stressed that trade and investments should have increased at a more rapid space if not for the bureaucracy and red tape on both sides.

The misuse of its FTA’s, specially for dumping purposes has been a key issue for Sri Lanka in the recent times.

According to Mr.Tabani the only way to minimise misuse is to effectively implement the different checks and balances that are built into the FTA itself.

During their 5 day visit the delegation is expected to call on Trade Minister Jeyaraj Fernandopulle, Investment Promotion Minister Rohitha Bogollagama and participate at presentations by the Board of Investment and the Joint Apparel Association Forum, visit the Katunayake Export Processing Zone and the Dankotuwa Industrial Estate.

The delegation included representatives from the airline industry, tourism, tea sector, textiles, shipping, furniture, pharmaceuticals, trading, bottled water, IT, freight forwarding, consultancy etc.

BACK

Designed & Hosted By SAHARTECH