India leads investments in Sri Lanka
Thursday, December 22, 2011
The influx of investment from India to Sri Lanka has increased in recent years in the field of steel, rubber, cement, power and energy, oil exploration, production, telecommunications, real estate, tourism, software, IT training and other professional services.
Consequently, over 50 percent of Indian investment in SAARC countries Sri Lanka is on of these joint ventures with 54% of Sri Lanka and the companies located in Sri Lanka.
According to a recent publication Pricewater house Coopers (PWC) investigation of the Board of Investment has granted approval of nine projects in India with an estimated investment of U.S. $ 168 million in 2011.
At least eight of them have begun commercial operations. In 2010, 15 projects with U.S. $ 72 million have been approved by the IC. Sri Lanka, scores heavily on investor protection, cross border trade and entrepreneurship and is ranked higher than India in the ease of doing business.
According to research by PwC, the total investment of U.S. $ 142.7 billion during 2011-2016 led by U.S. $ 98 billion of GDP by 2016. In addition to the local tourism industry needs to diversify in various subsectors such as eco, adventure, health tourism to attract investments and expenditures while focusing on new markets in USA, Middle East and Australia to encourage new tourists. The average expenditure per tourist goes to the U.S. $ 200 for 2020 and the arrival of tourists is likely to increase to 4 million per year by 2020.
Sri Lanka needs to attract FDI by creating a favorable environment for the planned investment through facilitating the provision of investment, legal services, simplification of rules and regulations, rapid investment approved procedures for achieving goal of U.S. $ 15 billion in FDI in 2020.
Investment in highway construction increased 0.8% in 2005 to 2% in 2010 and the road sector development corridors include high accelerated, express Toll Roads, rural? Links between urban roads through provincial funding for road maintenance sustainable development of local industry to build roads.
About U.S. $ 1.76 billion private investment planned for 2011 and 2020 to develop the road network in Sri Lanka. (IH)