Malaysia, Sri Lanka’s biggest investor for 3rd year

Malaysia is Sri Lanka's largest foreign investor in 2007 for the third year running and has increased its trading with Sri Lanka to US$32.53 million in 2007 from US$23.47 million in 2006. Malaysian High Commissioner Rosli Ismail said bilateral relations must be enhanced and strengthened through increased promotion in trade and investment. Speaking at a press conference organized by the Sri Lanka – Malaysia Business Council (SLMBC) at the Ceylon Chamber of Commerce, Ismail said Malaysian exports to Sri Lanka far outnumber Sri Lankan exports to Malaysia and that areas of mutual interest have to be identified. He added that the Sri Lankan government should take steps to end the conflict to further economic growth and development. With the recent conclusion of the Eastern Provincial Council elections, Ismail said investment opportunities have risen in the East.

Sri Lanka has traditionally been Malaysia's third largest trading partner in the South Asian region, after India and Pakistan with the exception of last year when Bangladesh pulled ahead of Sri Lanka in terms of bilateral trade. The SLMBC's objectives to promote trade and investment, joint ventures, tourism and services have grown and matured from strength to strength but promotional activities need to be increased. Ismail added that Malaysia provides a good platform for Sri Lanka to expand its market. Like Sri Lanka, Malaysia is dependent on its manufacturing sector to spearhead its economy.

Malaysia's capital investments in Sri Lanka are not that large but a good beginning, according to Ismail. Large investments have been made in the telecom industry with Telekom Malaysia's stake in Dialog and with Maxis Communications recent acquiring of a large stake in Sri Lanka Telecom. However, Ismail said Malaysia is also interested in infrastructure projects including roads and highways and the construction of houses and apartments. As more companies come into the Sri Lankan market, the more competitive it will become leading to better quality products for local consumers, Ismail said.

The main items exported from Sri Lanka to Malaysia in 2007 included rubber and rubber products, stationary, precious or semi-precious stones, black tea, copper, perfumes and aftershave, fish and crustaceans, aluminum, knitted or crocheted fabrics and man-made filaments. The main Malaysian imports to Sri Lanka last year were petroleum oils, plastic and plastic products, palm oil, earths and stone, machinery and mechanical appliances, iron and steel, news print, electrical machinery and equipment, articles of iron and steel and wooden products.

President of the SLMBC, K.D.C.E. Wickremeratne announced that the 4th Annual Sri Lanka Malaysia Business Awards will be held on July 22, 2008 to coincide with the 14th Annual General Meeting of the SLMBC. Formed in 1994, the SLMBC has 135 members from various organizations. (NG)