Sri Lanka Economy: Sri Lankan economy has demonstrated its resilience having registered an average economic growth of around 6% during last several years , amidst most challenging domestic and external conditions. The economy is estimated to record growth around 8% in 2010, the highest during last several years.
The GDP per Capita has more than doubled from US $1000 to over US $2,000 during last 4 to 5 years. With these recent developments, the international institutions such as IMF and World Bank have categorised Sri Lanka as newly emerging middle income countries. The Economic growth is projected to be on a higher level, in the next few years specially in line with the Governments development plan in the backdrop of stable and peaceful political environment, favourable economic conditions and the business friendly trade policy regime being followed by the Government.
Sri Lanka-Pakistan trade relations: Bilateral trade between Sri Lanka and Pakistan has been increasing over the years in both directions. A significant improvement in trade is seen between the two countries since implementation of Free Trade Agreement (FTA) in June 2005. Total trade has increased from $150 million in 2004 to $250 million in 2009. The trend is continuing at present.
Imports to Pakistan from Sri Lanka have gradually increased from very low level a few years back to record at $60 Million in 2009. This increasing trend is continuing. Main imports from Sri Lanka to Pakistan are natural rubber and rubber products, fresh coconuts, coconut oil, desiccated coconut, betel leaves, black tea, Spices, electrical switches and sockets, porcelain ware, ceramic tiles, broom sticks, wood and wood products etc.
Pakistan's exports to Sri Lanka also increased considerably from the level of US $108 million in 2004 to US $196 million in 2009. The main exports from Pakistan to Sri Lanka are cotton fabrics, pharmaceutical products, potatoes, rice, cement, cement clinkers, iron or steel products, fruits, onions, dried fish, textile fibre, spices, copper wire, hides and skins, natural sands etc.
As seen from the bilateral trade pattern between the two countries, it appears that product categories being traded between the two countries are limited to traditional products to a large extent. Therefore, there is a need on a part of business community of the two countries to explore trading opportunities available in each other's market in other sectors specially in manufactured and industrial products while utilising the tariff preferences offered under the Free Trade Agreement.
Sri Lanka has a range of products on offer for international buyers with high quality at competitive prices. Some of the products that could be imported into Pakistan are Vegetables, Fresh Fruits and processed foods, Cereals, Natural Gums, Chemicals, Herbal Cosmetics, Plastic products, Electrical machinery, Furniture, Gems and jewellery, minerals such as graphite, Coco Peat, Bicycles, Confectionery products, Canned fruits etc. Similarly Pakistan will also be able to market various products including manufacturing and industrial items.
The business community therefore, needs to explore the potentials between the two countries and should be in the constant interactions at institutional, industrial and individual level.
Bilateral investments: With the dawn of peace last year, an increasing enthusiasm of Pakistani business community is seen on emerging investment opportunities in Sri Lanka. The current level of investments are much below the potential.
The Governments of the two countries are very much hopeful of the vast potentials that exist in the two counties to enhance the co-operation in various fields, specially in investments. In this connection, the two governments have entered into bilateral agreements to protect investment and avoidance of double taxation related to business activities. A Memorandum of Understanding has also been concluded by the respective investment agencies of the two countries for this purpose.
Sri Lankan Board of Investment has introduced a wide range of incentives for the right foreign investors including facilitating investment projects, granting incentives, liberalised financial regulations and exchange control etc.
The Pakistani investors could look into the areas such as Agri - processing, Dairy industry, Agriculture, Textile processing, Sugar, Cement, Pharmaceutical manufacturing, Rubber manufacturing, Information Technology sector, Hotel industry etc.
Sri Lanka: An attractive Tourist Destination
Sri Lanka is a country blessed with diverse tourist attractions There are eight world heritage sites in Sri Lanka which include historical and archaeological cities, ancient cities, religious sites and national parks with wild life , bio diversity. Pleasing climatic conditions all around the year with clean sandy beaches are heaven for tourists. The country is full of tourist attractions to any visitor .
Tourism industry in Sri Lanka is projected to grow at a remarkable level in view of the prevailing peaceful conditions in the country after prolonged internal conflicts ended last year.Country has witnessed a growth of around 45% tourist arrivals in 2010 from many countries including, UK, Germany, USA, Middle East India and Pakistan, during last few months.
With these new developments, there are many opportunities for the Pakistani business community to invest in Sri Lanka in the tourism industry projects such as hotels, resorts, leisure parks etc. Several well known international companies have already identified Sri Lanka's potential and are in the process of investing in various projects, specially in hotels, resort development etc.
The Governments of Pakistan and Sri Lanka have recognised the potential in tourism sector and working towards increasing of air connectivity which is essential for expansion and promotion of tourism between the two countries.
A unique opportunity has arisen for Pakistani business community , holiday makers and cricket fans to visit Sri Lanka during February and March next year as all the group matches of Pakistan in World Cup 2011 will be played in Sri Lanka. This will also be a good opportunity for all those who are looking forward to visit this beautiful country and enjoy the diverse tourist attractions such as historical cities, sandy beaches, lush greenery tea gardens in the hill country, wild life and warm friendly people of Sri Lanka while enjoying the cricket.
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